Airtel Africa Plc reported a 20% increase in profit after tax to $452 million for the six months ending September, up from $376 million in the same period last year. This growth was driven by a double-digit increase in revenue across its markets, fueled by demand for data and mobile money services. The company's revenue climbed 28.2% to $3.82 billion, or 20.8% in constant currency.
The growth in revenue was largely driven by the company's data and mobile money services. Data revenue grew 28%, while mobile money revenue rose 25.8% in constant currency. The company's customer base also expanded by 11.6% to 193.9 million. Mobile money customers rose 22.4% to 60.9 million, with the annualised transaction value growing 36.5% to $275 billion.
Airtel Africa's performance varied across regions, with Nigeria growing the fastest in the second quarter at 24.4%, followed by Francophone Africa at 20.3% and East Africa at 18.6%. The company's underlying EBITDA margin hit a record 50.4% in the second quarter, up 144 basis points. However, higher fuel costs pushed up expenses, and profit was reduced by $55 million of exceptional items.
The company's capital expenditure more than doubled to $657 million as it added about 4,200 sites, partly to support its home broadband business. This investment was aimed at expanding its network and improving its services. Despite the increased expenditure, the company's leverage fell to 1.6 times from 2.1 times.
Airtel Africa's Chief Executive Officer, Sunil Taldar, noted that the company's margins will continue to depend on fuel costs and the broader macroeconomic environment. However, he expressed confidence in the company's growth prospects, which underpinned the decision to accelerate investment. The board declared an interim dividend of 3.1 cents per share, up 9.2%.
The company's smartphone penetration reached 51.6%, with smartphone users consuming 13.3 gigabytes of data on average, up from 10.1 gigabytes. Basic earnings per share rose to 10.2 cents from 8.3 cents. The company also returned $108.7 million to shareholders through buybacks.
Airtel Africa's growth in mobile money services was a key highlight of the company's performance. The company's mobile money customers rose 22.4% to 60.9 million, with the annualised transaction value growing 36.5% to $275 billion. The company kept its shareholding through the Airtel Money IPO and remains a long-term strategic shareholder.
Key points
- Airtel Africa's profit after tax rises 20% to $452 million in the six months through September.
- The company's revenue climbs 28.2% to $3.82 billion, driven by growth in data and mobile money services.
- Airtel Africa's underlying EBITDA margin hits a record 50.4% in the second quarter.
