Airtel Africa plc has announced its financial results for the year ended 31 March 2024, showcasing a resilient performance amid a volatile macroeconomic environment.
The company reported a 9 % increase in its total customer base, reaching 152.7 million, with a significant growth of 17.8% in data customers to 64.4 million and a 20.8% increase in data usage per customer and another increase in mobile money subscribers. Africa’s leading telecom company has also reiterated its Continued commitment to network investment to support an enhanced customer experience and drive increased coverage.
“Mobile money subscriber growth of 20.7% reflects our continued investment into distribution to drive increased financial inclusion across our markets. Transaction value increased by 38.2% in constant currency with an annual transaction value of over $112bn in reported currency. The Increase in transactions across the ecosystem reflects the enhanced range of offerings and increased customer adoption, supporting constant currency ARPU growth of 8.6%.”
The company’s revenue in constant currency grew by 20.9%, driven by robust growth in mobile services and mobile money revenue. Despite currency headwinds, Airtel Africa maintained a resilient EBITDA margin of 48.8%, with EBITDA increasing by 21.3% in constant currency.
The company’s CEO, Olusegun Ogunsanya, attributed the success to the consistent deployment of the ‘Win with’ strategy, which has reduced the impact of currency headwinds and increased revenue growth. Furthermore, the company’s rigorous approach to de-risking its balance sheet and capital allocation priorities has reduced the risks that the currency devaluation has had on the business.
The CEO expressed his gratitude to the customers, partners, governments, and employees for their support and contribution to the business adding that the purpose of transforming lives across Africa will continue to be the company’s highest priority.
“This strong revenue performance is a reflection not only of the opportunity that is inherent across our markets but also the resilience of our affordable offerings despite the inflationary pressure many of our customers have experienced.”
He said “Facilitating this growth has been, and will remain, fundamental to our performance. The investment in our distribution to catalyze growth, and the technology required to support this growth has been key. Furthermore, our rigorous approach to de-risking our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business. Key initiatives include the reduction of US dollar debt across the business and the accumulation of cash at the HoldCo level to fully cover the outstanding debt due. We will continue to focus on reducing our exposure to currency volatility. At the beginning of March, we launched our first buyback program reflecting the strength of our financial position.”
“The growth opportunity that exists across our markets remains compelling, and we are well positioned to deliver against this opportunity. We will continue to focus on margin improvement from the recent level as we progress through the year.”
However, the company reported a loss after tax of $89 million, primarily impacted by foreign exchange headwinds, resulting in a $549m exceptional loss net of tax following the Nigerian naira devaluation in June 2023 and Q4’24, and the Malawian kwacha devaluation in November 2023. Airtel Africa’s capital allocation strategy included a share buyback program of up to $100 million and a recommended final dividend of 3.57 cents per share. “Capex was broadly flat at $737m and was below our guidance largely due to a deferral in data center investments. In addition, we invested $152m in license renewal and spectrum acquisitions, including $127m for the Nigerian 3G license renewal.”
In addition to its financial performance, Airtel Africa highlighted its sustainability strategy, including a $57 million partnership with UNICEF and the ConnectRwanda 2.0 initiative in collaboration with the Government of Rwanda. These initiatives aim to provide educational resources and affordable smartphones to bridge the digital divide, reflecting the company’s commitment to sustainable growth and social impact.
“I want to say a particular thank-you to our customers, partners, governments and regulators for their support and our employees for their unrelenting contribution to the business. Our purpose of transforming lives across Africa will continue to be our highest priority.” He remarked.
