Airtel Africa has reported a net profit of $142 million in the first quarter (Q1) FY 22.
Company’s Q1’22 reported revenue grew by 30.7 per cent to $1,112 million, with constant currency growth of 33.1 per cent. Further, revenue growth partially benefitted from a weakened quarter in the prior year during the peak of Covid-19 restrictions across the region. Meanwhile, operating profit was $352 million, up 67.6 per cent in reported currency and 73.9 per cent in constant currency. Company’s profit after tax (PAT) more than doubled to $142 million up 148.7 per cent, largely due to the higher operating profits along with stable net finance costs which more than offset the increase in tax charges due to increased profits.
Further, strong revenue growth was recorded across all regions, Nigeria up 38.2 per cent, East Africa up 32.8 per cent and Francophone Africa up 24.9 per cent; and across key services, with revenues for voice up 26.0 per cent, data up 37.4 per cent and mobile money up 53.7 per cent.
Underlying EBITDA grew by 42.4 per cent to $534 million in reported currency, while constant currency growth was 46.2 per cent and Underlying EBITDA margin was 48.0 per cent, an increase of 396 basis points (increase of 428 basis points in constant currency) led by both revenue growth and improved operational efficiencies. Further, basic EPS was 3.3 cents, an increase of 200 per cent, as a result of higher profit and stable finance costs and foreign exchange. EPS before exceptional items was 3.2 cents. Operating free cash flow (underlying EBITDA less capex) was $428 million, up 38.7 per cent.
Airtel Africa’s customer base grew by 8.4 per cent to 120.8 million, with increased penetration across mobile data (customer base up 14.8 per cent) and mobile money services (customer base up 24.6 per cent). The slowdown in customer base growth was due to new SIM registration regulations in Nigeria; excluding Nigeria the customer base grew by 15.9 per cent.
Commenting on the results, Raghunath Mandava, chief executive officer, Airtel Africa, said, “Our Q1’22 results have been very strong, with reported growth of 30.7 per cent in revenue and 42.4 per cent in underlying EBITDA, with constant currency growth of 33.1 per cent and 46.2 per cent respectively. Q1 of last year was impacted by the start of Covid, but even after adjusting for these effects, our Q1’22 revenue growth rates for the Group, service segments and reporting regions were all ahead of Q4’21 trends. We have posted strong double-digit growth across voice (26.0 per cent), data (37.4 per cent) and mobile money (53.7 per cent), and across all our regions. Sub-Saharan Africa is now experiencing a third wave of the pandemic. Governments are implementing balanced measures of lockdowns and restrictions. But vaccinations levels remain very low. In these challenging times our business model has so far proven resilient, but we continue to monitor the situation closely for the potential impact on local economies and consumers. Our total customer base has returned to growth with acceleration in our East Africa and Francophone regions and despite continuing negative net additions in Nigeria. With the easing of these restrictions in late April we have since been able to gradually increase locations for activations in line with regulatory compliance across Nigeria, and we have begun adding new customers.
Our continued focus on modernisation and rollout of our network, along with simplifying our products and improving our distribution, have all helped us to make handsome gains on our ARPUs across voice, data and mobile money. Our robust operating model and solid execution should enable us to continue our profitable growth. We continue to see huge potential across voice, data and mobile money due to the low penetration levels in Africa, as we continue to partner the nations in bridging the digital divide and enhancing financial inclusion. We remain committed to continue to efficiently and effectively deliver services that help to improve the lives, communities and economies we serve.”
