Investor Presentaiton
> airtel
Airtel Africa plc
Results for the quarter ended 30 June 2022
28 July 2022
Double-digit revenue growth, margin and earnings progression and further strengthening of our balance sheet
Highlights
• Revenue grew by 13.0% in reported currency to $1,257m. In constant currency terms revenue grew by 15.3%.
.
•
Total revenues, for mobile services and mobile money services combined, grew in Nigeria by 18.3%, in East Africa by 14.1% and
in Francophone Africa by 11.7%.
Revenue growth in constant currency was posted across all four reporting segments. Mobile Services revenue in Nigeria grew
by 18.3%, in East Africa by 11.1% and in Francophone Africa by 10.6% (and across the Group by 14.2%, with voice revenue up
by 11.3% and data revenue up by 19.8%). Mobile Money revenue grew by 26.5%, driven by growth of 26.9% in East Africa and
25.4% in Francophone Africa.
•
EBITDA grew by 14.9% to $614m in reported currency.
•
•
EBITDA margin was 48.8%, an increase of 78 basis points in reported currency and 52 basis points in constant currency.
Operating profit grew by 20.6% to $425m in reported currency.
•
Profit after tax grew by 25.3% to $178m.
•
•
•
Basic EPS increased to 4.4 cents (up by 31.0%). EPS before exceptional items was 3.8 cents, up from 3.2 cents in the prior period.
Operating free cash flow grew by 10.3% to $473m, while net cash generated from operating activities reduced by 13.2% to
$388m, mainly due to increased cash tax payments from both higher taxes on declared dividends and increased taxable profits.
Leverage ratio has improved to 1.3x from 1.8x in the prior period. Post period end, in July 2022, the Group prepaid $450m of
outstanding external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024.
Our total customer base increased to 131.6 million, up 8.9%, with increased penetration across mobile data (customer base up
9.7%) and mobile money services (customer base up 19.7%).
Alternative performance measures 1
(Quarter ended)
GAAP measures
(Quarter ended)
Reported Constant
Reported
Jun-22
Jun-21
Jun-22
Jun-21
Description
$m
$m
currency
change
currency
change
Description
currency
$m
$m
change
Revenue
1,257
1,112
13.0%
15.3%
Revenue
1,257
1,112
13.0%
EBITDA
614
534
14.9%
16.5%
Operating profit
425
352
20.6%
EBITDA margin
48.8%
48.0%
78 bps
52 bps
Profit after tax
178
142
25.3%
EPS before exceptional
3.8
3.2
18.3%
Basic EPS ($ cents)
4.4
3.3
31.0%
items ($ cents)
Operating free cash flow
473
428
10.3%
Net cash generated from
operating activities
388
447
(13.2%)
(1) Alternative performance measures (APM) are described on page 15.
Segun Ogunsanya, chief executive officer, on the trading update:
'I am pleased to report that the Group has continued to post double-digit revenue growth, margin improvement and strong earnings
growth. I am also particularly pleased with our ongoing strengthening of the balance sheet which continued after the period ended,
with early repayment of $450m of debt at Group level.
As we flagged in our full year announcement, this quarter we have faced headwinds from outbound voice call barring for customers
who had not yet registered their National Identification Numbers in Nigeria and the loss of site sharing revenue in those OpCos where
we recently sold towers. Inflation is also having an impact on our cost base, particularly on energy costs, but our continued efficiency
drives have ensured that we have still been able to increase our margins, albeit at a slightly slower rate.
After receiving the Payment Service Bank licence in Nigeria just a few months ago, it is a testament to our prior preparation that we
have already managed to launch our mobile money operations in a few select locations without any operational issues. We are excited
by the commercial developments and opportunities here. We also continued to invest for growth and have made a couple of major
additional spectrum acquisitions recently in the DRC and Kenya in anticipation of continued strong data demand growth in these
markets.
We continue to target growth ahead of the market this year and, despite inflationary pressures, our continued focus on cost efficiencies
should also support margin resilience. Longer term, the opportunities for sustainable profitable growth stemming from our
underpenetrated markets for each of mobile voice, data and mobile money services remain hugely attractive, and we are confident of
continuing to deliver on our growth strategy.'
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