Airtel Africa plc, a multinational company that provides telecommunications and mobile money services in 14 countries in Africa reported its earnings for the quarter ended 30 June 2022.
Revenue for the period under review grew by 13% in reported currency to $1,257 million. The London Stock Exchange listed firm said total revenues, for mobile services and mobile money services combined, grew in Nigeria by 18.3%, in East Africa by 14.1% and in Francophone Africa by 11.7%. Profit after tax grew by 25.3% to $178 Million.
Mobile money revenue grew by 26.5% in constant currency, driven by revenue growth in East Africa of 26.9% and Francophone Africa of 25.4%.
The company noted that mobile money revenue grew by 26.5% in constant currency, driven by growth of 26.9% in East Africa and 25.4% in Francophone Africa. Net finance costs increased by $54m, as a result of $51m higher foreign exchange and derivative losses and $6m higher interest on lease obligations, partially offset by lower interest costs due to debt reduction (including the repayment of $505m bonds in March 2022.
Airtel Africa also disclosed that in July 2022, it prepaid $450 Million of outstanding external debt to its Holding Company. The remaining debt at HoldCo is now $550 Million, falling due in May 2024.
Airtel East Africa
East Africa revenue grew by 11.3% in reported currency to $359m, and by 11.1% in constant currency. The constant currency growth was made up of voice revenue growth of 14.1% and data revenue growth of 15.9% partially offset by decline in other revenues.
The company said that total tax charges were $19 Million lower mainly due to the initial recognition of a deferred tax credit of $21 Million in Kenya.
The company on 15 July 2022, announced that Airtel Kenya, one of its largest markets by revenue, had purchased 60 MHz of additional spectrum in the 2600 MHz band from the Communications Authority of Kenya for $40 million. The licence is valid from July 2022 for a period of 15 years. The firm says the additional spectrum will support its 4G expansion in the market for both mobile data and fixed wireless home broadband capability and will allow for future 5G rollout.
Airtel Africa’s total customer base increased to 131.6 million, up 8.9%, with increased penetration across mobile data (customer base up 9.7%) and mobile money services (customer base up 19.7%).