Airtel Africa’s robust performance in East Africa was significantly bolstered by the strengthening Kenyan shilling, coupled with a growing customer base for both data and voice services.
Key Highlights:
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Data Services:
- Data customer base surged 12.1% due to expanded 4G network and infrastructure upgrades.
- Data revenue soared to US$335 million in the second quarter.
- Data usage per customer increased to 5.9 GB per month.
- Airtel launched the “Data Imedata” campaign, offering 50% more data for specific denominations, to capture a larger market share.
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Voice Services:
- Voice revenue reached US$439 million, driven by increased network coverage and reduced interconnect rates in the region.
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Mobile Money:
- Mobile money revenue grew by 11.9%, with significant contributions from East Africa (31.4%) and Francophone Africa (20.2%).
- Airtel expanded its mobile money branches and kiosks, increasing the customer base by 13.4%.
- In Kenya, Airtel Money’s market share rose to 6.6% from 5.1%.
“EBITDA increased to US$418 million, up by 2.5% in reporter currency and up by 14.2% in constant currency. EBITDA margins of 47.3% declined by 233 basis points as a result of rising fuel prices in several of our key markets,” Airtel Africa reported.
Challenges and Opportunities:
While currency devaluations in Zambia, Malawi, and Tanzania impacted growth rates, the appreciation of the Kenyan shilling partially offset these effects. Additionally, rising fuel prices in key markets negatively impacted EBITDA margins.
Despite these challenges, Airtel Africa remains optimistic about its future growth prospects in Sub-Saharan Africa. The company is well-positioned to capitalize on a young and growing population, increasing smartphone adoption, and the growing demand for digital payment solutions.
“The scale of the opportunity across our markets remains substantial. A young and fast-growing population, combined with low levels of SIM and banking penetration on one hand, and increasing smartphone and digital payment adoption across our existing base on the other, provides a unique opportunity to leverage our extensive infrastructure for sustained growth in Sub-Saharan Africa,” Sunil Taldar, CEO Airtel Africa said.
Financial Performance:
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Overall:
- Group revenue declined by 2.6% to US$1.21 billion in Q3 FY24.
- Profit after tax reached US$79 million, impacted by foreign exchange losses in Nigeria.
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Regional Performance:
- East Africa: Strong performance driven by the Kenyan shilling’s appreciation and increased customer base.
- Nigeria: Revenue declined by 44.3% due to the Naira’s devaluation.
- Francophone Africa: Revenue grew slightly by 5.2%, despite inflationary pressures.
Airtel Africa’s strategic focus on network expansion, innovative services, and customer-centric initiatives positions the company for sustained growth in the African market.
“To meet our customers’ expectations, we will enhance distribution, simplify customer journeys, and improve network experience to unlock Africa’s vast growth potential, especially in B2B and home broadband segments,” Airtel Africa CEO Sunil Taldar noted.
