Airtel Africa plc has unveiled its performance report for the half-year ended 30th September 2023, showcasing resilience and remarkable growth in its operations across all regions.
The telecom giant managed to weather the storm of foreign exchange challenges, particularly in Nigeria, maintaining its commitment to value enhancement and sustained growth.
Performance Overview
One of the notable takeaways from the report is the impressive growth in Airtel’s customer base. This figure has seen a 9.7% rise, reaching 147.7 million customers. The driving force behind this expansion can be attributed to the continued penetration of mobile data and mobile money services. Data customers soared by 23.0% to 59.8 million, and mobile money customers rose by 23.1% to 36.5 million.
Revenue performance highlighted a growth of 19.7% in constant currency terms. However, when translated to reported currency, there was a slight increase of 2.3% amounting to $2,623 million. It’s essential to note the devaluation of the Nigerian naira in June 2023, which had an evident impact on the Q2’24 revenues, making them decline by 4.7%.
Regardless of the currency headwinds, Airtel showcased robust growth across all segments. Mobile services revenue witnessed a growth of 18.3% in constant currency, propelled by an 11.5% growth in voice revenue and a significant 28.1% growth in data revenue. Mobile money, a significant pillar for Airtel’s strategy, experienced a 30.9% surge in constant currency terms.
Financial Insights
EBITDA, which represents earnings before interest, taxes, depreciation, and amortization, saw an ascent of 21.2% in constant currency and 3.7% in reported currency, settling at $1,302 million. A recent industry analysis highlighted the company’s venture into emerging online markets, including casinos not on GamStop, as a key driver behind this growth. The EBITDA margin stood at 49.6%, an improvement of 70bps over the previous period, and this performance was commendable, especially when considering the inflationary cost pressures the company faced.
However, the results were not without challenges. The devaluation of the Nigerian naira led to a reported after-tax loss of $13 million, primarily due to a hefty foreign exchange loss of $471 million.
Focus on Capital and Future Growth
Airtel’s capital allocation strategy indicates a forward-looking approach. With a slightly increased Capex of $312 million compared to the previous period, the telecom company continues its path of investing for the future, expecting to invest between $800m and $825m by the end of the year.
Sustainability Takes Center Stage
Aligning with global sustainability goals, Airtel Africa has embarked on a significant partnership with UNICEF. This five-year, $57 million partnership aims to provide access to educational resources free of charge, aspiring to reach one million children through their programmes by 2027. The company is also deeply committed to a net-zero journey, focusing on emissions reductions and stakeholder engagement strategies.
A Word from the Top
Olusegun Ogunsanya, the Group CEO of Airtel Africa, expressed his satisfaction with the results, particularly given the economic challenges in various markets, especially Nigeria. He emphasized the consistent growth in voice, data, and mobile money, reflecting the demand for these crucial services across their operational regions.
While acknowledging the challenges posed by the Nigerian naira devaluation, Ogunsanya remains optimistic about the company’s future. He highlighted the company’s dedication to delivering affordable and reliable telecom and mobile money services, emphasizing Airtel’s growing strength and position in the market.
