Airtel Africa records USD 79 million profit in Q2
DAR ES SALAAM: Airtel Africa has announced strong operational results for the half-year ending 30 September 2024, underscored by solid growth in customer numbers and increased mobile money adoption, though tempered by financial pressures from currency devaluation.
According Airtel Africa financial statement issued over the weekend,, its total customer base rose by 6.1 per cent to 156.6 million, with data customers surging 10.4 per cent to reach 66 million.
Mobile money services continued to expand, reaching 41.5 million subscribers, a 13.4 per cent increase, reflecting the company’s ongoing commitment to financial inclusion initiatives across African markets.
The value of mobile money transactions rose by 30.1 per cent year-over-year, reaching an annualized transaction value of USD 128 billion.
Airtel Africa CEO Sunil Taldar highlighted the company’s progress, stating, “The sustained operating momentum over the period is a testament to our teams’ execution of our strategy.
We are focused on enhancing the customer experience by improving our distribution, simplifying user journeys, and strengthening network capabilities.”
The company reported a 19.9 per cent increase in revenue in constant currency, with Nigeria leading the way with a 38.2 per cent growth, while Francophone Africa saw a 9 per cent rise.
However, reported revenues declined by 9.7 per cent to USD 2.37 billion, impacted by significant currency devaluation, particularly in Nigeria. EBITDA margins also dipped to 45.8 per cent from 49.6 per cent year-on-year, largely due to increased fuel prices and currency challenges.
Despite the hurdles, Airtel Africa saw EBITDA growth of 13.5 per cent in constant currency, driven by its cost optimization program.
The company’s profit after tax stood at USD 79 million, after accounting for USD151 million in foreign exchange losses linked to the Nigerian naira’s depreciation.
Looking ahead, Airtel Africa plans to sustain its capital investments with USD 316 million in capex allocated to expand network infrastructure, including the rollout of over 2,800 sites and 3,500 kilometers of fiber.
The company is also prioritizing debt reduction, having paid down $809 million of foreign currency debt, and now holds 89 per cent of its debt in local currency.
The Board declared an interim dividend of 2.6 cents per share, reflecting a 9 per cent increase in line with Airtel’s progressive dividend policy.
Sunil Taldar noted the strong growth potential across African markets, underpinned by a young and rapidly growing population, low SIM and banking penetration, and rising smartphone usage.
“The growth opportunity across our markets remains compelling, and we continue to focus on margin improvement,” he added.
The results highlight Airtel Africa’s dual strategy of scaling services across rapidly expanding markets and stabilizing financial exposure amid a volatile currency landscape.
