(Alliance News) – Airtel Africa PLC on Thursday said it saw strong interim revenue growth, but profit was held back by the devaluation of certain African currencies.
In the half year ended September 30, the Africa-focused telecommunications firm said revenue grew 13% year-on-year to USD2.57 billion from USD2.27 billion. In constant currency, it rose 17%, with appreciation in Zambian kwacha offset but devaluations in several other currencies.
Mobile Money revenue saw the strongest growth, rising 28%, with Voice revenue up 7.5%, Data revenue up 18% and other revenue rising 7.9%.
“Revenue growth in the half was impacted again by the effect of some voice customers being barred in Nigeria and the loss of tower sharing revenues following the recent sales of towers in Tanzania, Madagascar and Malawi. Excluding these specific challenges growth for the half would have been around 20.4% in constant currency terms,” Airtel said.
Airtel’s total customer base rose 9.7% to 134.7 million, with the firm noting “increased penetration” across mobile data and mobile money services.
Pretax profit fell 9.1% to USD516 million from USD567 million, as the firm recognised USD358 million in net finance costs, compared to USD169 million a year before.
Airtel shares fell 5.4% to 120.21 pence each in London on Thursday morning.
Net finance costs included foreign exchange and derivative losses of USD184 million, compared to USD24 million a year before.
The rise was “due to a USD31 million derivative loss, Nigerian Naira devaluation impact of USD30 million, Central African Franc devaluation of USD45 million and the balance being devaluation in the Malawian Kwacha, Ugandan shilling & Kenyan shilling”, the firm explained.
Operating profit – before net finance costs are accounted for – rose 19% to USD872 million from USD732 million.
Airtel declared an interim dividend of 2.18 cents, compared to 2 cents a year before.
It said it has further derisked its balance sheet, having prepaid USD450 million in outstanding external debt to HoldCo.
Airtel said its long-term opportunities are ‘attractive’, and it is working to mitigate its material risks, remaining mindful of currency devaluation and repatriation risks.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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