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

Five mobility startups to watch in 2024

Connecting Africa has compiled a list of five mobility startups that are making a difference in the communities they serve.

Story

Orange Ventures, Digital Africa promise more funding for startups

Orange Ventures and Digital Africa are teaming up to invest more in tech startups in Africa and the Middle East through Digital Africa's Fuz program and the Orange Digital Center network.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

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.

More Africa Tech perspectives

Guest Perspectives

Story

How e-mobility could transform Africa's transport sector

By Francis Hook

ICT analyst Francis Hook delves into Africa's e-mobility sector and unpacks the challenges faced locally and the benefits the move to electric vehicles could bring to urban transport systems.

Story

Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002