Airtel Africa has announced its financial results for the quarter ended (QE) December 31, 2023. The company reported a 92 per cent year-on-year (YoY) fall in net profit for the third quarter (Q3) in the fiscal year 2023-24 (FY24), stung by significant foreign exchange (forex) headwinds amid currency devaluation in Nigeria and Malawi and a sharp jump in net finance costs.
The company reported that net profit for QE December 31, 2023, fell to $15 million on-year, reflecting an 89 per cent sequential fall, and revenue fell 8 per cent from a year earlier to $1.23 billion, hit by the currency devaluation, primarily of the Nigerian naira. Further, net finance cost for Q3 was at $352 million, which is 118 per cent higher YoY and around 85 per cent more sequentially.
The company reported a decent operating performance by way of subscriber additions and higher average revenue per user (ARPU) in Q3 FY24. The Nigerian naira devalued further in Q3 FY24, resulting in a $140-million derivative and forex losses, net of tax, which is not treated as an exceptional item.
For the QE December 31, 2023, $15 million net profit was primarily hurt by derivative and foreign exchange losses of $153 million (net of tax) due to devaluation of Nigerian naira and Malawian kwacha. Further, ARPU rose 2.7 per cent sequentially and 8.8 per cent YoY to $2.6. The customer base across Airtel Africa’s 14 markets rose 2.1 per cent sequentially and 9.1 per cent (YoY) to 151.2 million. Data revenue increased 6 per cent sequentially to $461 million.
In Q3 FY24, net debt was down 1.2 per cent sequentially to $3.28 billion. Leverage (net debt to earnings before interest, taxes, depreciation, and amortisation) at 1.3 times, improved from the prior period level of 1.4 times.
Furthermore, the penetration of Airtel Africa’s mobile data and mobile money services continued to rise, helped by a 4.9 per cent sequential rise in data customers to 62.7 million and a 2.5 per cent quarter-on-quarter (QoQ) increase in mobile money customers to 37.5 million. Quarterly revenue from the mobile money business too rose 8.6 per cent sequentially to $230 million.
In addition, the company stated that it will launch a share buy-back programme of up to $100 million, starting early March 2024 over a 12-month period.
