Airtel Grows Customer Base by 9.7% to 134.7 Million in H1 2022

Airtel Africa continued to expand across key areas as the total customer base grew by 9.7% to 134.7 million in the first half ended September 30, 2022. Airtel’s financial year starts in April of every year.

Customers of mobile data and mobile money services were up by 10.6% and 24%, respectively.

In the company’s half-year result obtained by Investors King, mobile money transaction value rose to $86.1 billion, a 31.7% year-on-year increase.

Revenue grew by 12.9% in the first half to $2,565m. The second quarter accounted for 12.7% of the increase. Constant currency growth rate accelerated to 18.5% in the second quarter to bolster growth to 16.9% in the period under review.

The telecom giant recorded strong revenue growth in constant currency across its four reporting segments. In Nigeria, mobile services revenue grew by 19.7% while in East Africa it increased by 12.4% and 12.1% in Francophone Africa.

Across the Group, revenue rose 15.6%, with voice revenue expanding by 12.0% and data revenue up by 22.1%. Mobile Money revenue appreciated by 29.5%, largely driven by 31.5% growth recorded in East Africa and 23.6% in Francophone Africa.

Profit after tax was $330m, a 1.5% decline due to higher foreign exchange and derivative losses of $160m. Profit after tax, excluding foreign exchange and derivative losses, was up by 30.4%

Capital expenditure increased by 26.9% to $310m, in line with our guidance, as we continue to invest for future growth. Additionally, we acquired spectrum in key markets including DRC and Kenya.

Commenting on the company’s performance, Segun Ogunsanya, chief executive officer, said “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% and ARPU growth of 7.2%, as we increased penetration and usage through our affordable service offerings. Our cost-efficiency initiatives combined with improving growth trends have also helped offset inflationary pressures on our cost base and expand our EBITDA margin by 38bps in constant currency.

“We continue to de-risk our balance sheet and have further reduced HoldCo debt with the early repayment of $450m of bond in July.

“We continue to invest for growth and have increased capital expenditure by 27% over the period, alongside a substantial investment into additional spectrum across several markets. Following the receipt of the Payment Service Bank and Super-Agent licence in Nigeria during the period, we have launched our mobile money operations.

“We are excited about the opportunity in our biggest market and will continue to build trust and confidence in the brand, whilst investing in distribution to increase access to financial services for underserved communities within the country.

“Today we have also published our inaugural sustainability report. The report provides a detailed review of our sustainability strategy that underpins our corporate purpose and sets out our achievements to date and our focus for the future.

“Overall these results continue to demonstrate the effectiveness of our strategy, sound execution, and the resilience of our business despite the uncertain macro-economic environment. For the remainder of the financial year, we anticipate sustained growth in the business, alongside EBITDA margin resilience.”