Airtel Africa Plc has posted a net profit after tax of $ 2million in Q3, 2023, a slower performance in what the mobile operator attributes to significant foreign exchange headwinds.
- For example, the conglomerate suffered a $330million exceptional loss after tax following the devaluation of the Nigerian naira in June 2023 and the Malawian kwacha in November 2023.
- The Nigerian naira devalued further in Q3’2023, resulting in a $ 140 million derivative and foreign exchange losses net of tax, which is not treated as an exceptional item.
- Airtel Africa plc, an Indian multinational that runs telecommunications and mobile money services in 14 countries in Africa, is majority-owned by the Indian telecommunications company Bharti Airtel.
Airtel Nigeria is the most profitable subsidiary of Airtel Africa, due to its cheap data plans in Nigeria. The company also has operations in Chad, DRC, Gabon, Kenya, Madagascar, Malawi, Niger, Republic of the Congo, Rwanda, Seychelles, Tanzania, Uganda and Zambia.
The latest data show that Airtel Africa grew its total customer base by 9.1% to 151.2 million at the end of Q3, 2023. The penetration of mobile data and mobile money services continued to rise, driving a 22.4% increase in data customers to 62.7 million and a 19.5% increase in mobile money customers to 37.5 million across its markets in Africa.
“Demand remains resilient, highlighting the vital nature of the voice, data, and mobile money services we provide to our customers across the region, and has resulted in a strong 20.2% constant currency revenue growth over the period, with an increase in EBITDA margins,” said Olusegun Ogunsanya, Airtel Group Chief Executive Officer, while commenting on the financial results.
Airtel Africa has a remaining debt at HoldCo, at $ 550 million, that it expects to repay in full when it falls due in May 2024.
“In light of the Holdco cash accretion and where leverage is today, and given the consistently strong operating cash generation of the Company, the Board intends to launch a share buy-back program of up to $100m, starting early March 2024 over 12 months,” said Ogunsanya.
He adds that Airtel Africa has sustained its focus on capital allocation priorities, to enable it to fully repay HoldCo debt when due in May 2024, ensuring the continued success of the mobile operator’s balance sheet de-risking strategy.
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