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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. 9
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