Airtel Africa's net profit declined 17.2% to $133 million in the quarter ended September 2022 over the quarter ended September 2021.
Profit attributable to owners of the company (before exceptional items) declined 30.2% year-on-year to $112 million in 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.Airtel Africa's revenue grew 12.7% on a reported basis and 18.5% in constant currency, to $1,308 million in Q2 September 2022. EBITDA stood at $641 million in quarter ending September 2022, rising 13.8% year on year. EBITDA margin grew by 45 basis points to 49% in Q2 September 2020 from 48.6% in Q2 September 2019.
The company's total customer base increased to 134.7 million, up 9.7%, with increased penetration across mobile data (customer base up 10.6%) and mobile money services (customer base up 24.0%).
ARPU growth was 7.2% in constant currency, largely driven by increased usage across voice, data and mobile money.
Mobile money transaction value increased by 31.7%, to an annualized value of $86.1 billion in Q2 FY23.
In July 2022, the Group prepaid $450 million of outstanding external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024. The leverage ratio has fallen to 1.3x from 1.5x in the prior period.
Capex increased by 26.9% 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.
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."
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa. Airtel Africa offers an integrated suite of telecoms solutions to its subscribers, including mobile voice and data services as well as mobile money services, both nationally and internationally.
Bharti Airtel is a global communications solutions provider with over 497 million customers in 17 countries across South Asia and Africa. The company's consolidated net profit surged to Rs 1,606.9 crore in Q1 FY23 compared with Rs 283.5 crore in Q1 FY22. Revenue from operations jumped 22.16% to Rs 32,804.6 crore in Q1 FY23 as against Rs 26,853.6 crore posted in the corresponding quarter previous year.
Shares of Bharti Airtel were up 1.84% to Rs 817.05 on the BSE.
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