Airtel Africa plc, one of the leading telecommunications service providers in Africa, has announced an increase in dividend by 9%, in line with their progressive dividend policy.
The company’s Board has recommended a final dividend of 3.27 cents per share, making the total dividend for the fiscal year 2023, 5.45 cents per share.
The decision to increase the dividend comes on the back of a strong financial performance by the company as Airtel Africa plc reported constant currency revenue growth of 17.6%, with revenues growing by 11.5% to $5,255m in reported currency.
The company’s mobile service revenue grew by 16.2% in constant currency, driven by voice revenue growth of 11.8% and data revenue growth of 23.8%. Mobile money revenue grew by 29.6% in constant currency.
The company’s capital allocation strategy also showed growth, with Capex increasing by 14.0% to $748m, as Airtel Africa plc continues to invest in future growth. Additionally, the company acquired spectrum in Nigeria, the DRC, Tanzania, Zambia, and Kenya during the year.
Airtel Africa plc’s sustainability strategy also saw progress, with the group’s inaugural Sustainability Report published in October 2022, reflecting commitment to sustainability and detailing progress against the long-term goals as outlined in the sustainability strategy.
The company’s ambition to achieve net-zero by 2050 has also progressed, with the publishing of their Scope 1, 2 and 3 baseline GHG footprint in October 2022, and in May 2023, announced their detailed plans to achieve over 60% reduction in Scope 1 and 2 emissions intensity by 2032.
The increase in dividend by 9% is seen as a positive sign by investors, with the company’s stock price expected to rise in the coming days. Airtel Africa plc’s commitment to sustainable growth, combined with their strong financial performance, is likely to make them a favorite among investors looking for reliable investment opportunities in Africa’s rapidly growing telecommunications industry.
