Investor Presentaiton
East Africa - Mobile services¹
Description
Summarised statement of operations
Quarter ended
Unit of
measure
Jun-22
Reported
Constant
Jun-21
currency
currency
change
change
Revenue
$m
359
323
11.3%
11.1%
Voice revenue
$m
203
178
14.2%
14.1%
Data revenue
$m
123
105
16.6%
15.9%
Other revenue 2
$m
33
39
(15.4%)
(14.4%)
EBITDA
$m
159
140
13.4%
12.5%
EBITDA margin
%
44.2%
43.4%
81 bps
56 bps
Depreciation and amortisation
$m
(60)
60
(56)
8.3%
8.4%
Operating exceptional items
$m
0.0%
0.0%
Operating profit
$m
99
84
17.0%
15.3%
Capex
$m
44
31
41.4%
41.4%
Operating free cash flow
$m
115
109
5.4%
4.5%
Operating KPIs
ARPU
Total customer base
Data customer base
$
2.1
2.0
4.2%
4.0%
Mn
58.5
55.4
5.6%
Mn
18.5
17.3
6.8%
(1) The East Africa business region includes Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia.
(2) Other revenue includes inter-segment revenue of $2.4m in the quarter ended 30 June 2022. Excluding inter-segment revenue, other revenue was $31m in the quarter
ended 30 June 2022.
East Africa revenue grew by 11.3% in reported currency to $359m, and by 11.1% in constant currency. The constant currency growth
was made up of voice revenue growth of 14.1% and data revenue growth of 15.9% partially offset by decline in other revenues. The
reduction in other revenues was due to the loss of c.$6m of tower sharing revenues from tower sales in Malawi and Tanzania. The
revenue growth rates in reported currency and constant currency were quite similar due to currency appreciation in Zambia almost
offsetting currency devaluations in Malawi, Kenya and Uganda.
Voice revenue grew by 14.1% in constant currency, driven by both customer base growth of 5.6% and voice ARPU growth of 6.9%. The
customer base growth was largely driven by expansion of both network coverage and the distribution network. Voice usage per
customer increased by 10.8% to 371 minutes per customer per month, driving voice ARPU up by 6.9%.
Data revenue grew by 15.9% in constant currency, largely driven by data customer base growth of 6.8% and data ARPU growth of 4.4%.
Our continued investment in network and expansion of 4G network infrastructure helped us to grow both the data customer base and
usage levels. 87.0% of our East Africa network sites are now on 4G, compared with 80% in the prior period. In Q1'23, 4G customers
accounted for 41.5% of our total data customer base and contributed to 65.4% of total data usage. Total data usage per customer
increased to 3.9 GB per customer per month, up by 30%, and 4G data usage per customer increased to 6.2 GB per customer per month
from 5.4 GB per customer per month in the prior period. Compared to recent quarters, data revenue growth is slower, as a result of a
slowdown in customer additions in Kenya and Malawi and lower ARPU growth in Tanzania and Malawi.
EBITDA increased to $159m, up by 12.5% in constant currency. The EBITDA margin improved to 44.2%, an improvement of 56 basis
points in constant currency, as a result of revenue growth and improved operating efficiencies.
Operating free cash flow was $115m, up by 4.5%, due largely to the expansion of EBITDA, partially offset by increased capex.
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