Airtel Africa profit after tax down 17.2% at $180 mn in Sept quarter

Telecom operator Airtel Africa on Thursday reported a 17.2 percent decline in net profit to $133 million in the quarter ended September 2022, on an annual basis. The latest hit was due to higher foreign exchange rates and derivative losses, the company said.

Profit attributable to owners of the company (before exceptional items) declined 30.2 percent year-on-year to $112 million in the  quarter ended September 2022. During the quarter, the company reported an exceptional gain of $21 million arising from the initial recognition of a deferred tax credit in Kenya.

Profit after tax excluding foreign exchange and derivative losses was up by 30.4 percent, it added.

Airtel Africa's revenue grew 12.7 percent on a reported basis and 18.5 percent in constant currency, to $1,308 million in Q2 September 2022.

The EBITDA stood at $641 million in quarter ending September 2022, rising 13.8 percent year on year. EBITDA margin grew by 45 basis points to 49 percent in Q2 September 2020 from 48.6 percent in Q2 September 2019.

The company's total customer base increased to 134.7 million, up 9.7 percent, with increased penetration across mobile data (customer base up 10.6 percent) and mobile money services (customer base up 24 percent).

The underlying revenue of Bharti Airtel's African telecom arm increased by 17.9 percent on a reported currency basis to USD 1.22 billion, from USD 1.03 billion in the December 2020 quarter. It was up 20 per cent on a constant currency basis.

"Airtel Africa continued to deliver strong results as its purpose of transforming the lives of people across sub-Saharan Africa through digital and financial inclusion gained further momentum, with growth accelerating in the second quarter. Whilst we are not immune to the current macro-economic challenges and currency devaluation risks, I am pleased to report double-digit reported revenue growth in the period, largely driven by customer growth of 9.7 percent and ARPU growth of 7.2 percent, as we increased penetration and usage through our affordable service offerings," Airtel Africa CEO Segun Ogunsanya said.

Following the receipt of the Payment Service Bank and Super-Agent licence in Nigeria during the period, we have launched our mobile money operations and are excited about the opportunity in our biggest market, he added.

Capex increased by 26.9 percent to $310 million, in line with guidance, as the company continues to invest for future growth. Additionally, the firm acquired spectrum in key markets including DRC and Kenya.