Airtel sees 11.5% revenue growth to $5.26bn in ‘23

By Onome Amuge

Airtel Africa has reported a revenue of $5.255 billion for the financial year ended March 31, 2023, representing 11.5 per cent year-on-year expansion in turnover during the period in review, against the $4.71 billion generated the previous year that ended on March 31, 2022.

The telecommunication giant which operates in 14 African countries, including Nigeria,also recommended a final dividend of 3.27 cents per share, raising the total dividend for full year 2023 to 5.45 cents per share, an increase of nine per cent in line with its progressive dividend policy.

Airtel Africa noted that the Nigerian market, where it has 60.30 million active subscribers for telephony services and 41.89 million internet users, contributed largely to the growth, followed by East African subscribers and the Francophone nations.

According to the financial results filed to the Nigerian Exchange (NGX) Limited,revenue growth was recorded across all reporting segments, with mobile services revenue up by 16.2 per cent, reflecting Nigeria growing by 20.3 per cent, East Africa by 13.4 per cent and Francophone Africa by 11.9 per cent, respectively.

Airtel Africa stated that while each segment’s reported currency revenue growth was impacted by currency devaluation, they all delivered double-digit constant currency revenue growth.

The results also showed that mobile service revenue advanced by 16.2 per cent in constant currency, driven by voice revenue growth of 11.8 per cent to $2.5 billion from $2.4 billion and data revenue growth of 23.8 per cent to $1.8 billion from $1.5 billion, as mobile money revenue grew by 29.6 per cent in constant currency from $692 million from $553 million.

In a similar trajectory,the company’s underlying  Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) increased by 17.3 per cent in constant currency and 11.4 per cent in reported currency to $2.6 billion, with an underlying EBITDA margin of 49.0 per cent, reflecting the resilience of its operating model despite inflationary cost pressures, though its net profit went down to $750 million.

Also, the customer base grew by 9.0 per cent to 140.0 million, as the penetration of mobile data and mobile money services continued to rise, driving a 16.9 per cent increase in data customers to 54.6 million and a 20.4 per cent increase in mobile money customers to 31.5 million.

However, the report showed that profit after tax stood at $750 million, a decrease of  $5 million, after including a higher foreign exchange and derivative losses of $245 million. Meanwhile, basic earnings per share at 17.7 cents was up by 5.2 per cent due to higher operating profits and exceptional items gain on deferred tax credit recognition in Kenya, the DRC and Tanzania partially offset by higher foreign exchange and derivative losses.

The company stated further  that Capex increased by 14.0 per cent to $748 million, in line with its guidance, as it continues to invest for future growth, adding that it acquired spectrum in Nigeria, the DRC, Tanzania, Zambia and Kenya during the year.

Analysing the financial report, and giving its trading update, Olusegun Ogunsanya, the chief executive officer of Airtel Africa, pointed out that despite the challenging operating environment over the last year, the company’s strategic focus on providing reliable, affordable and accessible services across its markets has enabled it to sustain its top-line growth momentum.

Ogunsanya also noted that the resilience of Airtel Africa’s underlying EBITDA margins has shown the effectiveness of the telco’s operating model, despite significant inflationary and foreign exchange pressures.  He added that strong customer and ARPU growth over the year demonstrates that demand for Airtel’s services remains very strong and gives the company the confidence to continue investing to support  future growth potential.

The Airtel Africa CEO disclosed further that over the year, the company invested $500m on additional spectrum, including 5G, across many of its OpCos which, combined with its capex, will underpin growth ambitions.

“I am pleased with this year’s performance and wish to thank all our customers, business partners, governments and regulators for their support and our employees for their consistent contribution to the business’ success,” he said.

On his part,  Carl Cruz, the newly appointed Airtel Nigeria CEO, said: “The results of the year ended March 2023, place Airtel Africa in an optimistic footing and Nigeria, being one of the most vibrant countries in the Group’s operations, is in a vantage position to capitalise on 5G technology, an energetic subscriber base, and the growing adoption of mobile money services, while we continue to promote the Group’s sustainability commitments.”