LONDON – Airtel Africa plc, a leading provider of telecommunications and mobile money services, has announced its half-year financial results ending September 30, 2024. Despite currency devaluation impacts, particularly in Nigeria, the company reported significant customer growth and increased revenue in constant currency terms.
The total customer base rose by 6.1% to 156.6 million, with data customers up by 10.4% to 66 million, driven by higher data usage and smartphone penetration. Mobile money subscribers also saw a 13.4% increase to 41.5 million, reflecting Airtel Africa’s investment in expanding financial inclusion.
Revenue growth in constant currency stood at 19.9% for the first half of the fiscal year, with an acceleration to 20.8% in the second quarter. Growth was notably strong in Nigeria, at 38.2%, and in Francophone Africa, at 9.0%. However, reported revenue declined by 9.7% to $2,370 million due to currency devaluation effects.
The company’s EBITDA margin decreased to 45.8% from 49.6% in the same period last year, attributed partly to rising fuel costs and the devaluation of the Nigerian naira. Nevertheless, EBITDA in constant currency increased by 13.5%, while reported EBITDA declined by 16.5% to $1,087 million.
Profit after tax stood at $79 million, impacted by derivative and foreign exchange losses due to the Nigerian naira’s depreciation. Basic earnings per share (EPS) improved to 0.8 cents from a negative 1.5 cents in the prior period.
Capital expenditures were slightly up at $316 million, with full-year guidance between $725 million and $750 million to support future growth. The company has made strides in reducing foreign currency debt and has extended tower lease agreements to focus on renewable energy investments.
Airtel Africa declared an interim dividend of 2.6 cents per share, up 9%, and continued its $100 million share buyback program, purchasing 61 million shares for $88 million as of the end of September 2024.
Sunil Taldar, CEO of Airtel Africa, highlighted the company’s operational momentum and refined strategy focused on enhancing customer experience. He emphasized the substantial growth opportunity in Africa, driven by a young population and increasing digital adoption. Taldar also noted initial successes in the company’s cost optimization program and the reduction of foreign currency debt as part of its balance sheet de-risking efforts.
This report is based on a press release statement from Airtel Africa plc.
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