Airtel Africa Quarterly Profit Jumps as Data, Mobile Money Drive Growth
Airtel Africa said on Thursday its quarterly profit rose sharply, lifted by strong demand for data services and mobile money across its markets as it continued to expand network investment.
Profit after tax for the quarter ended June climbed to $156 million from $31 million a year earlier, reflecting higher operating profit and easing currency headwinds.
Basic earnings per share rose to 3.4 cents from 0.2 cents, while earnings per share before exceptional items increased from 2.3 cents to 3.4 cents.
Group revenue grew nearly 25 percent in constant currency to $1.42 billion, supported by a surge in data and mobile money services.
Data revenue jumped 38 percent while voice revenue rose almost 14 percent, with mobile money revenues up 30 percent in constant currency.
Airtel Africa’s total customer base grew 9 percent to 169.4 million, with data customers increasing over 17 percent as smartphone penetration reached 46 percent.
Mobile money customers rose 16 percent to 45.8 million, with annualised transaction value increasing 35 percent to $162 billion.
The company continued to invest in its network, adding more than 2,300 new sites and expanding its fibre network, pushing 4G population coverage to nearly 75 percent, up from 72 percent a year earlier.
Earnings before interest, tax, depreciation and amortisation rose nearly 30 percent to $679 million, with margins improving to 48 percent from 45 percent.
Capital expenditure dropped to $121 million, which the company attributed to timing differences, maintaining its full-year capex guidance of between $725 million and $750 million.
Airtel Africa also advanced its debt localisation efforts, with almost 95 percent of operating company debt now in local currencies, up from 86 percent a year earlier.
The company has returned $16.9 million to shareholders through the buyback of 7.1 million shares under the second tranche of its $55 million share repurchase programme.
gandae@businessdayafrica.org