Airtel Africa Reports Resilient Operating Momentum and Announces $100 Million Share Buyback

Feb 03, 2024 Mark

Feb 03, 2024: Airtel Africa plc, Bharti Airtel’s Africa business unit, has released its results for the nine-month period ending 31 December 2023, showcasing sustained operating momentum despite persistent foreign exchange challenges. The company also announced its intention to initiate a share buyback program of up to $100 million.

Key Highlights:

Operating KPIs:

Total customer base grew by 9.1% to 151.2 million.
Mobile data and mobile money services penetration increased, driving a 22.4% rise in data customers to 62.7 million and a 19.5% increase in mobile money customers to 37.5 million.
Constant currency ARPU (Average Revenue Per User) growth of 10.0%.

Financial Performance:

Revenue in constant currency grew by 20.2%, accelerating to 21.0% in Q3’24.
Mobile services revenue grew by 18.6% in constant currency, with voice revenue up by 11.2% and data revenue up by 28.5%.
Mobile money revenue grew by 31.8% in constant currency.
Constant currency EBITDA increased by 21.9%, with a margin of 49.4%.
Profit after tax was $2 million, impacted by significant foreign exchange headwinds, including exceptional losses after the devaluation of the Nigerian naira and the Malawian kwacha.

Capital Allocation:

Capex of $494 million, 8.2% higher compared to the prior period.
Leverage improved to 1.3x in December 2023.
The Board intends to launch a share buyback program of up to $100 million, starting in March 2024 over a 12-month period.

Sustainability Strategy:

Airtel Africa launched a five-year $57 million partnership with UNICEF across 10 markets.
In November 2023, the company introduced its Scope 3 strategy, focusing on engagement with top-tier partners and suppliers to monitor their impact on the environment.

Olusegun Ogunsanya, Group Chief Executive Officer, commented:

“We remain focused on the execution of our growth strategy, and, combined with our strong operational execution, this has ensured that we continue to see sustained, positive growth momentum across the business, despite the inflationary and currency headwinds.”

Ogunsanya highlighted the resilience of demand for voice, data, and mobile money services, leading to a strong 20.2% constant currency revenue growth. Despite currency devaluation challenges, the company remains well-positioned to deliver on growth opportunities. The Board’s decision to launch a share buyback program reflects confidence in the company’s operating performance and capital allocation priorities. Airtel Africa is committed to providing affordable and reliable services while exploring new business opportunities.