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Investor Presentaiton

Mobile services Description Summarised statement of operations Quarter ended Unit of measure Jun-22 Reported Constant Jun-21 currency currency change change Revenue (1) $m 1,135 1,018 11.6% 14.2% Voice Revenue $m 610 562 8.6% 11.3% Data Revenue $m 418 356 17.3% 19.8% Other Revenue $m 107 99 8.2% 10.6% EBITDA $m 526 481 9.4% 11.3% EBITDA Margin % 46.3% 47.2% (93) bps (119) bps Depreciation & Amortization $m (182) (171) 6.7% 9.6% Operating Exceptional Items $m - 0.0% 0.0% Operating Profit $m 344 310 10.9% 12.3% Capex $m 127 100 27.0% 27.0% Operating Free Cash Flow $m 399 381 4.7% 7.2% Operating KPIs Mobile voice Customer base Voice ARPU Mobile data Data customer base Data ARPU Mn 131.6 120.8 8.9% $ 1.6 1.6 (0.7%) 1.8% Mn $ 46.5 2.9 42.4 2.9 9.7% 2.8% 5.0% (1) Mobile service revenue after inter-segment eliminations was $1,134m in the quarter ended 30 June 2022 and $1,016m in the prior period. Revenue from mobile services grew by 11.6% in reported currency, and in constant currency grew by 14.2%. The constant currency growth was evident in all regions and key services. Mobile services revenue grew in Nigeria by 18.3%, in East Africa by 11.1% and in Francophone Africa by 10.6%. Voice revenue grew by 11.3% in constant currency, supported by both customer base growth of 8.9% and voice ARPU growth of 1.8%. Customer base growth was driven by the expansion of our network and distribution infrastructure. The slowdown in voice revenue growth this quarter was due to the barring of outgoing calls for those customers in Nigeria who had not submitted their NINs. A total of 13.6 million customers were initially barred out of which 5.3 million (39%) have subsequently submitted their NIN and 2.3 million (17%) have subsequently been verified and unbarred. The voice ARPU growth of 1.8% was driven by an increase in voice usage per customer of 6.0%, reaching 264 minutes per customer per month, with total minutes on the network increasing by 15.9%. Data revenue grew by 19.8% in constant currency, driven by both customer base growth of 9.7% and data ARPU growth of 5.0%. The customer base growth was recorded across all the regions supported by the expansion of our 4G network. 88.4% of our total sites are now on 4G, compared with 79.4% in the prior period. 44.1% of total data customers are 4G users (up from 37.9%) contributing to 71.9% of total data usage. Data usage per customer increased to 4.0 GB per customer per month (from 3.2 GB in the prior period) while 4G data usage per customer reached 6.6 GB per month (from 5.1 GB in the prior period). In the quarter, data revenue contributed to 36.8% of total mobile services revenue, up from 35.0% in the prior period. Compared to recent quarters, data revenue growth was slower largely the result of a slowdown in the growth of data usage per customer as well as higher churn due to NIN-related call barring in Nigeria and lower ARPU growth in certain markets. EBITDA was $526m, growing by 11.3% in constant currency. The EBITDA margin declined by 93 basis points to 46.3% (declined by 119 basis points in constant currency). The reduction in EBITDA margin was due to an increase in operating cost. Operating free cash flow was $399m, up by 7.2%, due to the expansion of EBITDA partially offset by higher capex. 11
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