Airtel Africa Reports Over 11 Percent Revenue Growth

Airtel Nigeria Appoints Two Directors To Its Executive Leadership Team

Airtel Africa has announced positive operating and financial performance in the recently released results for the year ending March 2023.

Airtel Africa company witnessed significant growth in its customer base, with a notable 9 percent increase to reach a total of 140.0 million customers.

Customer Base

This growth can be attributed to the increasing adoption of mobile data and mobile money services, which led to a 16.9 percent rise in data customers to 54.6 million and a 20.4 percent increase in mobile money customers to 31.5 million.

Average Revenue Per User (ARPU)

According to the report, The financial results also showcased impressive figures, with a constant currency Average Revenue Per User (ARPU) growth of 7.4 percent. Increased voice, data, and mobile money usage primarily drove this growth. Notably, the mobile money transaction value soared by a remarkable 41.3 percent, surpassing USD 102 billion in constant currency annually in the fourth quarter of 2023.

Financial Performance

In terms of financial performance, Airtel Africa experienced substantial revenue growth in constant currency, with a 17.6 percent increase. Although reported currency revenue growth in each segment was affected by currency devaluation, all segments demonstrated double-digit growth in constant currency.

Mobile service revenue, driven by a remarkable 16.2 percent growth in constant currency, saw a surge in voice revenue by 11.8 percent and data revenue by 23.8 percent. Mobile money revenue also experienced a substantial growth rate of 29.6 percent in constant currency.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a 17.3 percent increase in constant currency and an 11.4 percent rise in reported currency to reach USD 2,575 million.

According to the release, Despite inflationary cost pressures, Airtel Africa’s operating model exhibited resilience, maintaining an underlying EBITDA margin of 49.0 percent. However, the company’s profit after tax decreased by a minor USD 5 million to USD 750 million, primarily due to higher foreign exchange and derivative losses amounting to USD 245 million.

Spectrum Acquisition

Regarding capital allocation, Airtel Africa’s capital expenditure (Capex) increased by 14.0 percent to USD 748 million. Additionally, the company acquired spectrum in several African countries, including Nigeria, the Democratic Republic of the Congo (DRC), Tanzania, Zambia, and Kenya, during the fiscal year.

In line with its commitment to shareholder value, Airtel Africa recommended a final dividend of 3.27 cents per share, resulting in a total dividend of 5.45 cents per share for the fiscal year 2023. This represents a significant 9 percent increase in line with the company’s progressive dividend policy.

Sustainability strategy

Furthermore, Airtel Africa emphasized its sustainability strategy, including the publication of its inaugural Sustainability Report in October 2022. The company’s sustainability goals and progress were outlined in the report, showcasing its commitment to sustainable practices.

Airtel Africa’s partnership with UNICEF across six markets, providing educational resources to over 250,000 children, demonstrates its dedication to social impact.

Additionally, the company aims to achieve net-zero emissions by 2050 and has unveiled detailed plans to reduce Scope 1 and 2 emissions intensity by over 60 percent by 2032.

“Despite challenges in the operating environment, our strategic focus on delivering reliable, affordable, and accessible services has sustained our growth momentum. Our resilient EBITDA margins demonstrate the effectiveness of our operating model amid inflationary and foreign exchange pressures.”

“Strong customer and ARPU growth highlight the robust demand for our services, empowering us to invest in our future growth. We express gratitude to our valued customers, partners, governments, regulators, and dedicated employees for their support and contributions to our success. While the macroeconomic outlook remains volatile, we are well positioned to seize growth opportunities and prioritize margin resilience,” stated Olusegun Ogunsanya, CEO of Airtel Africa.