Investor Presentaiton
Financial review for the quarter ended 30 June 2022
Nigeria - Mobile services
Description
Summarised statement of operations
Quarter ended
Unit of
measure
Jun-22
Reported
Constant
Jun-21
currency
currency
change
change
Revenue
$m
517
445
16.2%
18.3%
Voice revenue
$m
259
238
8.8%
10.8%
Data revenue
$m
210
171
22.6%
24.8%
Other revenue 1
$m
48
36
34.5%
37.0%
EBITDA
$m
264
246
7.3%
9.2%
EBITDA margin
%
51.0%
55.3%
(424) bps
(424) bps
Depreciation and amortisation
$m
(75)
(63)
19.0%
21.2%
Operating exceptional items
$m
-
0.0%
0.0%
Operating profit
$m
189
183
3.3%
5.1%
Capex
$m
56
49
14.6%
14.6%
Operating free cash flow
$m
208
197
5.4%
7.9%
Operating KPIs
ARPU
Total customer base
Data customer base
$
3.8
3.6
4.9%
6.8%
Mn
Mn
46.0
20.5
40.9
12.7%
17.8
15.6%
(1) Other revenue includes inter-segment revenue of $0.5m in the quarter ended 30 June 2022. Excluding inter-segment revenue, other revenue was $47.5m in the quarter
ended 30 June 2022.
Revenue grew by 16.2% in reported currency to $517m, and by 18.3% in constant currency. The differential in growth rates was due
to devaluation of the Nigerian naira by 1.8%. The constant currency revenue growth was driven by both customer base growth of
12.7% and ARPU growth of 6.8%, largely driven by higher data and other revenue.
Voice revenue grew by 10.8% in constant currency, driven by customer base growth of 12.7% while voice ARPU growth was flat. Voice
revenue growth was impacted by the barring of outgoing calls for customers 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. This has resulted in a loss of approximately. $34m revenue in the quarter and a
corresponding impact of 7.5 percentage points on the growth rate.
Data revenue grew by 24.8% in constant currency, driven by data customer base growth of 15.6% and data ARPU growth of 7.1%. Data
usage per customer increased by 19.1% to 4.6 GB per month (from 3.8 GB in the prior period). As we continued our 4G network rollout,
nearly all our sites in Nigeria (99%) now deliver 4G. For the Q1'23 period, 44.3% of our data customer base were 4G users, contributing
to 77.7% of total data usage. 4G data usage per customer reached 7.4 GB per month, an increase of 45.6% (from 5.1 GB per customer
per month in Q1'22). Compared to recent quarters, data revenue growth was lower as a result of a slowdown in the growth of data
usage per customer, as well as higher churn due to NIN-related call barring.
Other revenues grew by 37.0% in constant currency, with the main contribution coming from the growth in value added services
revenue, led by airtime credit services.
EBITDA was $264m, growing by 9.2% in constant currency. The EBITDA margin declined to 51.0% from 55.3% due largely to the increase
in operating costs.
Operating free cash flow was $208m, up by 7.9%, due to the expansion of EBITDA, partially offset by higher capex.
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