Airtel Africa reports strong revenue growth and expansion in customers

Airtel Africa, a leading telecommunications company operating across multiple African countries, has announced impressive financial results for the period of April to June 2023. The company reported a significant 9.6 percent increase in revenue, reaching an impressive $1,377 million during the quarter.
Airtel Africa InternetAirtel Africa has generated revenue of $528 million (+2.2 percent) from Nigeria; $519 million (+14.2 percent) from East Africa; and $330 million (+14.5 percent) from Francophone Africa.

One of the key drivers behind the company’s success has been the remarkable growth in its customer base. Airtel Africa saw its customer numbers rise by 8.8 percent, now serving a total of 143.1 million customers across the continent.

The most remarkable growth was observed in the data customer base, which surged by 22 percent, totaling 56.8 million users. Additionally, Airtel Africa’s mobile money services saw tremendous growth, with its customer base increasing by 24.3 percent to reach 34.3 million users.

The company attributed the surge in data and mobile money customers to the increasing penetration of mobile data and mobile money services in the region. The convenience and utility of these services have been key drivers in attracting more users, resulting in a remarkable 22 percent growth in data customers and a 24.3 percent growth in mobile money customers.

Airtel Africa also achieved an Average Revenue Per User (ARPU) growth of 1.1 percent, largely driven by increased usage across voice, data, and mobile money services. The value of mobile money transactions also saw a substantial increase of 26.2 percent, amounting to $201 million. Moreover, the annualized transaction value of mobile money services reached a staggering $107 billion.

The company’s commitment to future growth is evident through its continuous investment in the network and distribution infrastructure. Despite a challenging economic climate, Airtel Africa maintained its capex at $140 million, remaining flat compared to the previous period.

Across all segments, Airtel Africa achieved double-digit revenue growth. Notably, mobile services revenue in Nigeria surged by 23.0 percent, East Africa experienced a significant increase of 19.8 percent, and Francophone Africa reported a growth of 13.0 percent.

Within the mobile services segment, voice revenue grew by 11.9 percent, data revenue by 29.8 percent, and other revenues by 19.8 percent. Mobile money revenue was the standout performer with a remarkable growth rate of 31.2 percent, driven by a surge of 35.3 percent in East Africa and 19.0 percent in Francophone Africa.

In addition to these impressive financial results, Airtel Africa made significant progress in managing its debts, demonstrating sound financial management. In July 2022, the company prepaid $450 million of outstanding external debt at HoldCo, resulting in the remaining debt standing at $550 million, due in May 2024. The holding companies also maintained healthy cash reserves, with a balance of $505 million at the end of the period.

Airtel Africa’s CEO, Olusegun Ogunsanya, expressed his enthusiasm for the company’s achievements, stating, “The acceleration in voice, data, and mobile money revenue growth is testament to the success of our six-pillar ‘win-with’ strategy. Our continuing investment in the network and distribution enabled us to expand our customer base further, driving increased usage on our network.”

With such remarkable financial performance and a clear growth strategy in place, Airtel Africa remains well-positioned to capitalize on the burgeoning demand for telecoms and mobile money services in the African market.