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Airtel Africa Makes $240 Million Profits, Revenue Hits $4.7 Billion in Q1 2022

Airtel Africa Makes $240 Million Profits, Revenue Hits $4.7 Billion in Q1 2022

…Average revenue per user, a metric of profitability in telecom services, was $3.2, up 13.5% on-year in FY22 and 9.5% on-year for the quarter ended March 2022.

Airtel Africa reported profit of $240 million for the quarter ended March 2022, 56% up from $154 million in the same period in FY21.

Revenues were higher by 17.8% and reached $1.2 billion in the quarter for FY22, from $1 billion in March quarter of FY21.

The Bharti Airtel subsidiary clocked an 82% increase in net profit to $755 million for FY22 compared to the previous financial year, while revenues grew by 20.6% to $4.7 billion in FY22 from $3.9 billion in FY21, the company said in a statement on Wednesday.

Revenue for the quarter ended March 2022 rose 18% on-year and 0.2% sequentially to $1.222 billion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 22.9% on-year to $608 million in the quarter ended March, while it was up 29% on-year to $2.3 billion for the full financial year ended March 2022. Margins also saw equal traction upwards to 49.7% in Q4FY22 versus 47.7% in Q4FY21. For the full year, margins rose to 49% in FY22 from 46.1% in FY21.

Operating free cash flow increased by 35% in Q4FY22 to $384 million and by 40.5% for the full year to $1.65 billion.

Data revenue grew nearly 28% on-year and around 1.3% sequentially to $398 million while voice revenue rose nearly 14% on-year and under 2% sequentially to $615 million in the March quarter. Data customer base at the end of March, FY22 stood at 46.7 million, a 3.6% sequential growth and over 15% annual growth.

Read More: Airtel Africa Makes $3.5 Billion Revenue in Nine Months

The Africa unit’s mobile money business revenue climbed 29% annually but only 0.3% sequentially, to $141 million. The active mobile money user base grew nearly 21% annually and nearly 2% sequentially to 26.2 million, while mobile money ARPU fell under 3% on-quarter to $1.8.

Airtel Africa said it has strengthened its balance sheet through both deleveraging and reducing its US dollar debt expense. The company improved its leverage ratio to 1.3x net debt to underlying EBITDA in the quarter ended March.

Airtel’s Africa unit’s customer base across 14 markets in the continent rose nearly 9% on year and 2% on-quarter, to 128.4 million, while monthly churn increased marginally to 4.3%. However, the Africa unit’s average revenue per user (ARPU) fell 3% sequentially to $3.2.

Airtel Africa added that an “increase in tax charges of $187 million was due to higher operating profits, and withholding tax on dividends by subsidiaries.”

The company’s net debt fell 3.5% sequentially to $2.941 billion, in the quarter ended March 2022.

“We have delivered strong double-digit growth in revenues across all our regions and all our key services, with improving margins driven by strong cost control, and expanding cash generation which is enabling us to continue to invest in our network and services and expand our distribution, as well as strengthening our balance sheet and increasing our returns to shareholders,” said Segun Ogunsanya, chief executive officer of Airtel Africa.

“We are connecting more customers in new and existing coverage areas and driving usage levels and ARPUs to new highs,” he added.

About Bukola Olanrewaju

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