New Delhi: airtelAfrica’s business reported net profit of $178 million in the fiscal first quarter of 2023, a 25% year-over-year jump but a 26% decline sequentially, due to higher costs and also blocking of outgoing calls for customers. who have not registered their national identification numbers in Nigeria.
Revenue for the quarter ended June 2022 rose 13% year over year and 2.8% sequentially in reported currency, to $1.257 billion, the company said Thursday. Average revenue per user (ARPU) rose 0.6% quarter-on-quarter and 4.4% year-over-year to $2.9.
In a statement, Defeat Ogunsanyageneral manager at Airtel Africasaid the telco has improved its margins amid “strong earnings growth. I am also extremely pleased with our continued strengthening of the balance sheet that continued post-period, prepaying $450 million of group-level debt” .
But the company said it faced headwinds from blocking outgoing voice calls to customers who had not yet registered their national identification numbers in Nigeria and lost revenue from site-sharing in those operating companies where it recently sold towers. “Inflation is also impacting our cost base, particularly energy costs, but our continued efficiencies have enabled us to continue to increase our margins, albeit at a slightly slower pace,” the company said.
Airtel Africa’s net financing costs in the June 2022 quarter increased 55% year-over-year and 34.8% sequentially to $151 million.
“Net finance costs increased $54 million due to $51 million higher foreign exchange and derivative losses and $6 million higher interest on lease obligations, partially offset by lower interest expense due to debt reduction (including the repayment of $505 million bonds in March 2022) the company said in its quarterly report.
The company’s net debt declined 13.5% year-over-year but rose 3.9% sequentially to $3.056 billion in the quarter ended June 2023.
“Our balance sheet has become less risky due to a reduction in HoldCo debt to $1 billion, from $1.9 billion in the prior period; and the increased localization of our debt in the OpCos, so our HoldCo debt is significantly lower than $3 billion of OpCo gross debt (including lease obligations), the company added.
Airtel Africa’s customer base in 14 markets on the continent grew 2.4% quarter on quarter and 8.9% year on year to 131.6 million, with 3.1 million net additions. The active mobile money base grew 19.7% year-over-year and 5.6% sequentially to 27.6 million, while mobile money ARPU grew 5.9% year-over-year and 5% quarter-on-quarter to $2.
After receiving a full payment services bank (PSB) license in Nigeria, the company has initially started operations at selected retail touchpoints and is now gradually expanding operations across the country.
“This marks the beginning of our journey to revolutionize the financial services landscape in Nigeria, to help further digitize the Nigerian economy and to help the unbanked banks reach the millions of Nigerians currently without access. to financial services by providing current and savings accounts, payment and remittance services, debit and prepayment cards and more advanced services,” the company said.
Airtel’s Kenya unit also announced on July 15 that it has purchased 60 MHz of additional spectrum from the 2600 MHz band, which are 4G expansion for both mobile data and fixed wireless home broadband capabilities and will 5G unroll. Kenya is one of the largest markets in terms of revenue for the company.
Looking to the future, the company said it will continue to aim for above-market growth this year, and despite inflationary pressures, the continued focus on cost-cutting should also support margin resilience.
“Longer term, the opportunities for sustainable profitable growth arising from our under-penetrated markets for mobile voice, data and mobile money services remain extremely attractive, and we are confident that we can continue to deliver on our growth strategy,” said CEO Ogunsanya.
Bharti’s Africa operation, which has seen a strong business resurgence in recent years, became part of the FTSE 100 Index in 2021. The company completed its first full year of profitability in FY18, marking a reversal from previous years as losses mounted quarterly, dragged its consolidated numbers down and even cast doubt on Bharti’s strategy to expand the continent. entered in 2010 Airtel Africa Plc was listed on: London Stock Exchange end of June 2019.