Airtel Africa Plc: Half-Year Financial Results for the Period Ended 30 September 2024
Overview
Airtel Africa has reported strong operational growth amidst currency devaluation challenges. The results reflect the company’s sustained focus on expanding its customer base and enhancing financial inclusion across its markets. Key financial and operational metrics for the half-year ended 30 September 2024 are summarized below.
Operational Highlights
• Customer Growth: Total customer base grew by 6.1% to 156.6 million.
• Data Customers: Increased by 10.4% to 66 million, with data usage per customer up by 30.9%.
• Smartphone Penetration: Rose by 5.3% to reach 42.9%.
• Mobile Money Expansion: Mobile money subscribers grew by 13.4% to 41.5 million.
• Transaction Growth: 30.1% increase in transaction value (annualized at $128 billion).
• Revenue Growth:
• Data ARPU grew by 13.5%.
• Mobile Money ARPU grew by 10.9%.
Financial Performance
• Revenue:
• Constant currency revenue growth of 19.9%, with a Q2 acceleration to 20.8%.
• Reported currency revenue declined by 9.7% to $2,370 million, affected by currency devaluations.
• EBITDA:
• Reported currency EBITDA decreased by 16.5% to $1,087 million.
• EBITDA margin declined to 45.8% (Q2 improvement to 46.4%) due to cost pressures and currency impact.
• Profit After Tax: Declined to $79 million, influenced by exceptional forex losses.
Capital Allocation and Debt Structure
• Capital Expenditure: Increased by 1.3% to $316 million, with full-year guidance remaining between $725 million and $750 million.
• Debt Reduction: $809 million of foreign currency debt repaid, now 89% of OpCo debt is in local currency.
• Leverage: Leverage ratio increased to 2.3x due to $1.2 billion increase in lease liabilities following tower lease renewals.
Dividend and Share Buyback
• Dividend: Interim dividend declared at 2.6 cents per share, a 9% increase.
• Share Buyback: $100 million program in progress with $88 million used to purchase 61 million shares by September 2024.
Key Takeaways
Airtel Africa’s robust operational growth in customer base, data usage, and mobile money continues to reflect its strategic investments in network and distribution. However, currency devaluations and higher finance costs have impacted EBITDA margins and net profit. The company remains committed to financial discipline, with a focus on debt restructuring and investment in local currency financing to mitigate forex risks.
Overview
Airtel Africa has reported strong operational growth amidst currency devaluation challenges. The results reflect the company’s sustained focus on expanding its customer base and enhancing financial inclusion across its markets. Key financial and operational metrics for the half-year ended 30 September 2024 are summarized below.
Operational Highlights
• Customer Growth: Total customer base grew by 6.1% to 156.6 million.
• Data Customers: Increased by 10.4% to 66 million, with data usage per customer up by 30.9%.
• Smartphone Penetration: Rose by 5.3% to reach 42.9%.
• Mobile Money Expansion: Mobile money subscribers grew by 13.4% to 41.5 million.
• Transaction Growth: 30.1% increase in transaction value (annualized at $128 billion).
• Revenue Growth:
• Data ARPU grew by 13.5%.
• Mobile Money ARPU grew by 10.9%.
Financial Performance
• Revenue:
• Constant currency revenue growth of 19.9%, with a Q2 acceleration to 20.8%.
• Reported currency revenue declined by 9.7% to $2,370 million, affected by currency devaluations.
• EBITDA:
• Reported currency EBITDA decreased by 16.5% to $1,087 million.
• EBITDA margin declined to 45.8% (Q2 improvement to 46.4%) due to cost pressures and currency impact.
• Profit After Tax: Declined to $79 million, influenced by exceptional forex losses.
Capital Allocation and Debt Structure
• Capital Expenditure: Increased by 1.3% to $316 million, with full-year guidance remaining between $725 million and $750 million.
• Debt Reduction: $809 million of foreign currency debt repaid, now 89% of OpCo debt is in local currency.
• Leverage: Leverage ratio increased to 2.3x due to $1.2 billion increase in lease liabilities following tower lease renewals.
Dividend and Share Buyback
• Dividend: Interim dividend declared at 2.6 cents per share, a 9% increase.
• Share Buyback: $100 million program in progress with $88 million used to purchase 61 million shares by September 2024.
Key Takeaways
Airtel Africa’s robust operational growth in customer base, data usage, and mobile money continues to reflect its strategic investments in network and distribution. However, currency devaluations and higher finance costs have impacted EBITDA margins and net profit. The company remains committed to financial discipline, with a focus on debt restructuring and investment in local currency financing to mitigate forex risks.