Airtel Africa posts 1.5 pc dip in half-yearly profit

London (UK), October 27 : Airtel Africa announced a 1.5 per cent decline in its net profit to USD 330 million for the half-yearly period ended September 30, against USD 335 million in the year-ago period, due to higher foreign exchange and derivative losses of USD 160 million.
Its revenue went up 12.9 per cent to USD 2,565 million, against USD 2,272 million in the corresponding half-yearly the previous year. Operating profit rose 19.1 per cent to USD 872 million from USD 732 million whereas basic earning per share (USD per cents) rose 3.7 per cent to 7.9. These calculations were done according to generally accepted accounting principles (GAAP).
Segun Ogunsanya, chief executive officer, Airtel Africa, said, "Airtel Africa continued to deliver strong results as its purpose of transforming the lives of people across sub-Saharan Africa through digital and financial inclusion gained further momentum, with growth accelerating in the second quarter. Whilst we are not immune to the current macro-economic challenges and currency devaluation risks, I am pleased to report double-digit reported revenue growth in the period, largely driven by customer growth of 9.7 per cent and average revenue per user (Arpu) growth of 7.2 per cent, as we increased penetration and usage through our affordable service offerings."
The company said its total customer base rose 9.7 per cent to 134.7 million as compared with the half year in the previous year, on the back of increased penetration across mobile data and mobile money services. Its Arpu saw 7.2 per cent growth in constant currency, largely driven by increased usage across voice, data and mobile money.
The company said it saw strong revenue growth in constant currency, posted across all four reporting segments. Mobile Services revenue in Nigeria grew 19.7 per cent, in East Africa by 12.4 per cent and in Francophone Africa by 12.1 per cent and across the Group, it grew 15.6 per cent, with voice revenue up by 12 per cent and data revenue up by 22.1 per cent). Mobile Money revenue grew by 29.5 per cent, driven by 31.5 per cent growth in East Africa and 23.6 per cent surge in Francophone Africa.
The company also reported that its earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 14.3 per cent to $1,255 million in reported currency and by 17.8 per cent in constant currency, with an Ebitda margin of 48.9 per cent, an increase of 60 basis points in reported currency and 38 basis points in constant currency.
The chief executive officer said, "Our cost efficiency initiatives combined with improving growth trends have also helped offset inflationary pressures on our cost base and expand our Ebitda margin by 38bps in constant currency."
The CEO also added that the company continues to de-risk our balance sheet and have further reduced HoldCo debt with the early repayment of USD 450 million of bond in July and continues to invest for growth and have increased capital expenditure by 27 per cent over the period, alongside a substantial investment into additional spectrum across several markets.
'HoldCo Financing' is the provision of loan facilities to a holding company ('HoldCo'), which sits above an operational company or group of companies ('OpCo Group') and which has secured senior debt at the operational group level ('senior debt').