Joy Agwunobi
Airtel Africa Plc has reported a 20.4 per cent rise in revenue, reaching $3.638 billion for the nine months ending December 31, 2024.
The company’s total customer base expanded by 7.9 per cent, bringing the number of users to 163.1 million. Additionally, the number of data customers surged by 13.8 per cent , totaling 71.4 million.
Airtel Africa also revealed a significant increase in data consumption, with the average data usage per customer growing by 32.3 per cent to 6.9 GBs. Smartphone penetration increased by 5.2 per cent, reaching 44.2 per cent.
The company’s mobile money subscriber base grew by 18.3 per cent, reaching 44.3 million, while the transaction value for the third quarter surged by 33.3 per cent in constant currency. The annualised transaction value stood at $146 billion, and the Average Revenue Per User (ARPU) increased by 15.0 per cent. Similarly, mobile money ARPU grew by 11.8 per cent in constant currency.
Despite these strong performance indicators, Airtel Africa’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) declined by 11.9 per cent, totaling $1.681 billion. This drop was attributed to the impact of higher fuel prices and a reduced contribution from Nigeria, which affected the company’s EBITDA margins, now at 46.2 per cent.
Capital expenditure (capex) for the period decreased by 7.8 per cent, amounting to $456 million. However, the full-year capex guidance remains between $725 million and $750 million. The company also saw its leverage increase from 1.3x to 2.4x, mainly due to a $1.2 billion rise in lease liabilities following the extension of tower lease agreements. The report noted that Airtel Africa’s operating company debt is predominantly in local currencies, with just 8% denominated in foreign currencies.
Commenting on the results, Sunil Taldar, Airtel Africa’s CEO, stated, “We have made progress in both operational and financial performance in the last quarter, fueled by our refined strategy. Our emphasis on speed and quality execution is unlocking significant growth opportunities across our markets and business segments, where demand remains strong.”
Taldar highlighted that data traffic growth across Airtel’s markets had surged by 49% compared to the previous year, underscoring the success of their investment strategy. “Our focus remains on further improving margins. We are also encouraged by the robust capital structure, with only 8 per cent of OpCo debt in foreign currency, a substantial improvement over the last year,” he added.
He also pointed out the growing confidence in Airtel Africa’s future, which has led the board to announce a second share buyback program, returning up to $100 million to shareholders.
Taldar expressed optimism about the stability in certain markets, citing recent signs of currency stabilisation and the Nigerian Communications Commission’s decision on tariff adjustments. These developments, according to him, provide a solid foundation for continued growth and improved market conditions, despite ongoing challenges.
