A significant growth in its Nigerian revenue and Profits Inspires Airtel Africa Plc to a strong performance in the first quarter of the 2021 business year.
Regardless of the slowdown In customer base growth due to suspension of new SIM registration In Nigeria, Airtel Africa Experienced a strong revenue growth across the Regions in Nigeria, at a fast rise of 38.2%. East Africa rose by 32.8% while Francophone regions grew by 24.9%.
The quarterly report for that period ended June 30, 2021 showed that revenue also grew across other key service, with revenues for voice up 26%, Data rose by 37.4% and mobile money went up by 53.7%.
The Establishment reported growth in revenue by 30.7% to $1,112 million, with constant currency growth of 33.1%. This growth was partly benefitted from a weakened quarter in the prior year during the peak of COVID-19 restrictions across the region. Even after preparing for these effects, revenue growth for Airtel Africa, service segments and reporting region were all ahead of fourth quarter ended March 2021.
The report showed that underlying earnings before interest tax depreciation and amortisation (EBITDA) grew by 42.4% to $534 million in reported currency, while currency growth was 46.2%.
Underlying EBITDA margin was 48%, an increase of 396 basis points led by both revenue growth and improved operational efficiencies.
Operating profit was $352 million, up by 67.6 % in reported currency and 73.9% in constant currency.
Profit after tax more than doubled to $142 million, an increase of 148.7%, largely due to the higher operating profits along with stable net finance costs which more than offset the increase in tax charges due to increased profits.
Chief Executive Officer, Airtel Africa, Raghunath Mandava noted that revenue growth rates for the group, service segments and reporting regions were all ahead of previous quarter trends.
He said the group posted strong double-digit growth across voice, data and mobile money and across all its regions.
“In these challenging times our business model has so far proven resilient, but we continue to monitor the situation closely for the potential impact on local economies and consumers.
“Our total customer base has returned to growth with acceleration in our East Africa and Francophone regions and despite continuing negative net additions in Nigeria. With the easing of these restrictions in late April we have since been able to gradually increase locations for activations in line with regulatory compliance across Nigeria, and we have begun adding new customers.
“Our continued focus on modernisation and rollout of our network, along with simplifying our products and improving our distribution, have all helped us to make handsome gains on our ARPUs across voice, data and mobile money. Our robust operating model and solid execution should enable us to continue our profitable growth.
“We continue to see huge potential across voice, data and mobile money due to the low penetration levels in Africa, as we continue to partner the nations in bridging the digital divide and enhancing financial inclusion. We remain committed to continue to efficiently and effectively deliver services that help to improve the lives, communities and economies we serve,” Mandava said.