AUS
NZ
UK
CA
USA
IND
Highlights
- Airtel Africa’s customer base grew by 6.1%, with data users increasing by 10.4% and mobile money subscribers up 13.4%.
- Revenue in constant currency terms grew by 19.9%, but reported currency revenue declined by 9.7% due to currency devaluation.
- Profit after tax was impacted by $151 million in derivative and forex losses, primarily driven by the Nigerian naira’s depreciation.
Airtel Africa plc (LSE:AAF) has released its results for the half-year ended 30 September 2024, showcasing solid operational performance with significant growth in customer base and data usage, despite challenges posed by currency devaluation, particularly in Nigeria. The company continues to expand its mobile and financial services across its African markets, with a focus on enhancing customer experience and supporting financial inclusion.
Operating Highlights
- Customer Base and Data Growth:
Airtel Africa’s total customer base grew by 6.1%, reaching 156.6 million by the end of the first half of 2024. The number of data customers increased by 10.4%, now totaling 66.0 million. Data usage per customer surged by 30.9%, with average usage reaching 6.6 GBs. This growth was supported by a 5.3% increase in smartphone penetration, which now stands at 42.9%. - Mobile Money Expansion:
Airtel’s mobile money subscribers grew by 13.4% to 41.5 million, reflecting the company’s ongoing investment in distribution channels to promote financial inclusion across its markets. The value of transactions processed through the mobile money platform saw an impressive 30.1% increase in constant currency, with an annualized transaction value reaching $128 billion. - Revenue from Data and Mobile Money Services:
Average Revenue Per User (ARPU) for data services grew by 13.5%, while mobile money ARPU increased by 10.9%, both in constant currency. This growth contributed to an overall ARPU rise of 11.1% year-on-year. - Network Investment:
Enhancing customer experience remains a central part of Airtel Africa’s strategy. The company increased its data capacity by 20% during the period, adding over 2,800 new sites and expanding its fibre network by around 3,500 kilometers, further improving network infrastructure.
Financial Performance
- Revenue Growth in Constant Currency:
In constant currency terms, Airtel Africa’s revenue grew by 19.9% during the first half of 2024, with growth accelerating to 20.8% in Q2. The Nigerian market led this growth, with revenue surging by 38.2%, while Francophone Africa contributed a 9.0% increase. Mobile services revenue grew by 18.4%, and mobile money revenue increased by 28.8%. However, in reported currency, revenue declined by 9.7%, impacted by the devaluation of local currencies, particularly the Nigerian naira. - EBITDA Margin Decline Due to External Factors:
The company’s EBITDA margin for H1 2024 declined to 45.8%, compared to 49.6% in H1 2023. This decrease was driven by higher fuel prices across its markets and the reduced contribution from Nigeria following the naira’s devaluation. However, sequential improvements were noted in Q2 2024, with the EBITDA margin increasing to 46.4%, reflecting the initial benefits of Airtel’s cost-efficiency program. Constant currency EBITDA increased by 13.5%, while reported currency EBITDA declined by 16.5% to $1.09 billion. - Impact of Currency Devaluation on Profit:
Profit after tax for the period was $79 million, affected by $151 million in exceptional derivative and foreign exchange losses (net of tax), primarily driven by the depreciation of the Nigerian naira. Earnings per share (EPS) before exceptional items dropped from 7.0 cents to 4.9 cents, reflecting the impact of currency translation. Basic EPS improved to 0.8 cents from a negative 1.5 cents in the previous year, which had been significantly impacted by higher derivative and foreign exchange losses.
