Airtel Africa Grows Profit by 408% as Data Revenue Spikes
Airtel Africa’s profit after tax grew by 408% year-on-year to $156 million in Q1 from $31 million in the prior period in 2024, according to its regulatory filing in the Nigerian Exchange amidst a 34.1% surge in data revenue under reported currency.
The telecom company said its prior period was significantly impacted by derivative and foreign exchange losses, primarily in Nigeria, while the current period benefitted from a $22 million gain largely arising from the Central African franc (CFA) appreciation during the quarter.
Hence, basic earnings per share of 3.4 cents was recorded compared to 0.2 cents in the prior period, predominantly reflecting higher operating profit in the current period and derivative and foreign exchange losses in the prior period.
Airtel said earnings per share before exceptional items increased from 2.3 cents in the prior period to 3.4 cents, as higher operating profits more than offset the impact of higher finance costs arising from the tower contract renewals undertaken during the previous financial year.
The telecom company noted that its total customer base grew by 9.0 per cent to 169.4 million, driven by a focus on bridging the digital divide across its markets.
Data customers increased by 17.4 per cent to 75.6 million, contributing to accelerating demand for data services, according to its official release. Data Average Revenue Per Use (ARPU) growth accelerated to 18.5 per cent in constant currency, as data usage across the network increased by 47.4 per cent.
The report noted that Airtel Money, a Mobile Financial Service (MFS), continued to play a pivotal role in fostering financial inclusion, with a 16.1 per cent increase in customers to 45.8 million.
“The company’s strategic focus on great customer experience is underpinned by sustained network investment, with the rollout of over 2,300 new sites to reach 37,579 sites.
“Airtel Africa’s fibre network was expanded by 2,700 kilometres to over 79,600 kilometres, driving increased data capacity across the region,” the report said. According to the report, the company’s Fourth Generation (4G) population coverage reached 74.7 per cent, an increase of 3.4 per cent from a year ago.
Airtel Africa noted that revenues grew by 24.9 per cent in constant currency and 22.4 per cent in reported currency, driven by tariff adjustments in Nigeria and a strong performance in Francophone Africa. “Mobile services revenue grew by 23.8 per cent in constant currency, driven by voice revenue growth of 13.9 per cent and data revenue growth of 38.1 per cent.
“Mobile Money, a Mobile Financial Service (MFS), revenues continued to see strong growth, with a 30.3 per cent increase in constant currency,” the report stated. The report noted that Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) grew by 29.8 per cent in reported currency to $679 million, with EBITDA margins expanding further to 48.0 per cent from 45.3 per cent in the prior period.
Airtel Africa said profit after tax improved to $156 million, up from $31 million in the prior period, driven by higher operating profit and a gain from the Central African franc appreciation.
It noted that Basic Earnings Per Share (EPS) increased to 3.4 cents, up from 0.2 cents in the prior period. The company’s capital expenditure was lower compared to the prior period, driven by timing differences.
The report said Airtel Africa’s debt localization program aimed to reduce foreign currency debt exposure, with almost 95 per cent of Operating Company (OpCo) debt now in local currency. It noted that leverage increased to 2.2 times, primarily reflecting the increase in lease liabilities arising from tower contract renewals.
Commenting, Sunil Taldar, Chief Executive Officer of Airtel Africa, said, “We are very pleased with the strong growth in our operating and financial performance in the first quarter. “The company remains confident about its ability to capture growth potential across its markets and is committed to delivering services that improve the lives of its customers.
“Airtel Africa’s strategy continues to prioritise the customer experience, with a focus on leveraging technology to lower barriers to smartphone adoption,” he said. He noted that the company’s Mobile Financial Service remained a cornerstone of its growth proposition, with significant potential to advance financial inclusion.
Taldar said Airtel Africa’s strong revenue performance and continued cost efficiencies contributed to further EBITDA margin expansion, resulting in strong EBITDA growth.
“The company will continue to focus on technology and product offerings to deliver a differentiated experience for its customers,” Taldar said. #Airtel Africa Grows Profit by 408% as Data Revenue Spikes BUA Cement Soars by 31% Amidst Anticipated Earnings Release
