A significant growth in its Nigerian revenue spurred Airtel Africa Plc to a strong performance in the first quarter of its current business year.
Despite a slowdown in customer base growth due to new SIM registration regulations in Nigeria, Airtel Africa saw strong revenue growth across all regions with Nigeria rising faster at 38.2 per cent. East Africa rose by 32.8 per cent while Francophone Africa grew by 24.9 per cent.
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The three-month report for the period ended June 30, 2021 showed that revenue also grew across key services, with revenues for voice up 26 per cent, data up by 37.4 per cent and mobile money up 53.7 per cent.
The group reported revenue growth of 30.7 per cent to $1,112 million, with constant currency growth of 33.1 per cent. Revenue growth partially benefitted from a weakened quarter in the prior year during the peak of COVID-19 restrictions across the region. Even after adjusting for these effects, revenue growth rates for the group, service segments and reporting regions were all ahead of fourth quarter ended March 2021 trends.
The report showed that underlying earnings before interest tax depreciation and amortisation (EBITDA) grew by 42.4 perent to $534 million in reported currency, while currency growth was 46.2 perent.
Underlying EBITDA margin was 48 perent, an increase of 396 basis points led by both revenue growth and improved operational efficiencies.
Operating profit was $352 million, up by 67.6 perent in reported currency and 73.9 perent in constant currency.
Profit after tax more than doubled to $142 million, an increase of 148.7 perent, largely due to the higher operating profits along with stable net finance costs which more than offset the increase in tax charges due to increased profits.
Basic earnings per share (EPS) was 3.3 cents, an increase of 200 perent, as a result of higher profit and stable finance costs and foreign exchange. EPS before exceptional items was 3.2 cents. Operating free cash flow was $428 million, up by 38.7 perent.
Customer base grew by 8.4 perent to 120.8 million, with increased penetration across mobile data- customer base up 14.8perent; and mobile money services-customer base up 24.6 perent. The slowdown in customer base growth was due to new SIM registration regulations in Nigeria; excluding Nigeria the customer base grew by 15.9 perent.
Chief Executive Officer, Airtel Africa, Raghunath Mandava noted that revenue growth rates for the group, service segments and reporting regions were all ahead of previous quarter trends.
He said the group posted strong double-digit growth across voice, data and mobile money and across all its regions.
“In these challenging times our business model has so far proven resilient, but we continue to monitor the situation closely for the potential impact on local economies and consumers.
“Our total customer base has returned to growth with acceleration in our East Africa and Francophone regions and despite continuing negative net additions in Nigeria. With the easing of these restrictions in late April we have since been able to gradually increase locations for activations in line with regulatory compliance across Nigeria, and we have begun adding new customers.
