Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

4G/5G

Bharti Airtel Boasts Further African Growth

Article Image
Bharti Airtel's African business is on the rise, with subscribers on the continent increasing by 10.7% year-on-year to 98.9 million across 14 markets, the operator reported in its updated fourth quarter and full year results for the period ended March 31, 2019.

"The Africa growth story remains strong with the full year witnessing a 12% revenue growth," said Raghunath Mandava, MD and CEO of Africa Airtel, in a statement.

That near 12% growth was at constant currency exchange rates, but at "reported currency" rates the full fiscal year revenues grew by 6% to US$3.08 billion, while profit after tax grew considerably to $331 million from just $3 million a year earlier.

"The increase comes on the back of a robust data traffic growth of 73% and Airtel Money throughput by 22% on a YoY basis. We continue to invest towards enhancing customer experience through a high speed LTE network. To this end, the year saw an overall capex spend of $630 million," Mandava added. That capex was far greater than the $411 million of the previous year.

Raghunath Mandava, Managing Director and CEO at Airtel Africa.
Raghunath Mandava, Managing Director and CEO at Airtel Africa.

Data customers increased by 20.4% to 30 million, compared to 24.9 million a year earlier. The active Airtel Money customer base increased to 14.2 million, boosting the total transaction value on Airtel Money platform by 30% to $26.16 billion.

Those statistics bode well for Airtel Africa's planned IPO, which the operator confirmed this week: It plans to raise $750 million from the issue of new shares. The operator intends to use the proceeds from the IPO to reduce net debt. (See Airtel Africa Plans London Listing.)

Bharti Airtel announced more than a year ago the plan to list its African business. It selected bookrunners in September, raised $1.25 billion in a pre-IPO with six investors in October, followed by another round of pre-IPO in January which raised $200 million. (See Airtel Africa Gets Another Cash Injection, Adds Customers.)

The success of the African operations are in contrast to those of the total Bharti Airtel group, which has its main operations in the brutally competitive market of India. Despite gains in Africa, overall Airtel Group customer numbers were down 2.5% to 404 million across 16 countries. Group consolidated total revenue was down 2.2% YoY on an underlying basis to 807.8 billion Indian rupees ($11.7 billion). Consolidated EBITDA was also down, by 13.6% YoY to INR262.94 billion ($3.79 billion), bringing the EBITDA margin down 4.3%.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

Story

Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up