Airtel Africa, a subsidiary of Bharti Airtel operating in 14 African countries, today has announced its results for the nine-month period ending December 31, 2023. During this period, Airtel Africa witnessed a 9.1 percent increase in its total customer base, reaching 151.2 million. The company reported growth in both mobile data and mobile money services, with data customers increasing by 22.4 percent to 62.7 million and mobile money customers by 19.5 percent to 37.5 million.
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Profit before tax for the third quarter ended December 31 was USD 43 million compared with USD 285 million for the same period a year earlier. Revenue for the quarter fell to USD 1.24 billion from USD 1.35 billion. Within this voice revenue fell 16.8 percent to USD 538 million while data revenue fell 5.9 percent to USD 428 million. Earnings before interest, taxes, depreciation and amortisation slipped to USD 606 million compared with USD 661 million.
Driven by increased usage across all segments, the company reported a 10.0 percent growth in constant currency Average Revenue Per User (ARPU). Additionally, mobile money transaction value surged by 41.3 percent in constant currency, reaching an annualised transaction value of USD 116 billion in reported currency.
In Q3'24, Airtel Africa reported revenues declined by 8.3 percent due to currency devaluation, primarily driven by the devaluation of the Nigerian naira.
"Profit after tax was USD 2 million in the (nine-month) period, primarily impacted by significant foreign exchange headwinds, particularly the USD 330m exceptional loss after tax following the devaluation of the Nigerian naira in June 2023 and the Malawian kwacha in November 2023 after the structural changes in their respective FX markets."
"The Nigerian naira devalued further in Q3'24, resulting in a USD 140m derivative and foreign exchange losses net of tax, which is not treated as an exceptional item," Airtel Africa said in its earnings statement.
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"Across the group mobile services revenue grew by 18.6 percent in constant currency, driven by voice revenue growth of 11.2 percent and data revenue growth of 28.5 percent. Mobile money revenue grew by 31.8 percent in constant currency," Airtel Africa said.
Airtel Africa has announced its intention to launch a share buy-back program of up to USD 100 million, starting early March 2024 over a 12-month period.
"We continue to be well positioned to deliver on the attractive growth opportunities our markets offer and despite the challenge of rising diesel prices, ongoing currency devaluation and inflationary pressures across some of our markets, we remain focused on margin resilience," Chief Executive Olusegun Ogunsanya said.
