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.

Business of Tech

Airtel reports double-digit first quarter growth

Article Image
Telecommunications company, Airtel Africa, has reported quarterly revenue growth of 13% year-on-year (YoY), to $1.26 billion.

The telco, which operates in 14 countries across Africa – in mobile services and mobile money services – reported growth in Nigeria of 18.3%, in East Africa of 14.1% and in Francophone Africa of 11.7% for the quarter ended June 30, 2022.

"I am pleased to report that the Group has continued to post double-digit revenue growth, margin improvement and strong earnings growth," Airtel Africa's CEO Segun Ogunsanya said in a results statement.

"I am also particularly pleased with our ongoing strengthening of the balance sheet which continued after the period ended, with early repayment of $450 million of debt at Group level," he added.

The company is seeing success in its mobile financial services in Africa and its operating profit grew by 20.6% YoY for the quarter, to $425 million.

Mobile money revenue increased by 26.5% driven by growth of 26.9% in East Africa and 25.4% in Francophone Africa.

Airtel Africa CEO Segun Ogunsanya (Source: Airtel Africa)
Airtel Africa CEO Segun Ogunsanya (Source: Airtel Africa)

The telco's earnings before interest, tax, depreciation and amortization (EBITDA) grew by 14.9% to $614 million in reported currency, and the margin was 48.8% – an increase of 78 basis points in reported currency and 52 basis points in constant currency.

Airtel Africa's customer base was also up 8.9%, to 131.6 million total users, as it grew mobile data customers by 9.7% and mobile money customers increased by 19.7%.

Headwinds hinder growth

Ogunsanya said the company faced headwinds in Nigeria where some customers had to be barred from outbound voice calls because they had not yet registered their National Identification Numbers as per a government mandate.

"Inflation is also having an impact on our cost base, particularly on energy costs, but our continued efficiency drives have ensured that we have still been able to increase our margins, albeit at a slightly slower rate," he added.

However, Ogunsanya cited that after the telco received a Payment Service Bank license in Nigeria, it managed to launch its mobile money operations in a few select locations without any operational issues.


Want to know more? Sign up to get the weekly Connecting Africa newsletter direct to your inbox.


"We are excited by the commercial developments and opportunities here. We also continued to invest for growth and have made a couple of major additional spectrum acquisitions recently in the Democratic Republic of Congo (DRC) and Kenya in anticipation of continued strong data demand growth in these markets," he added.

"We continue to target growth ahead of the market this year and, despite inflationary pressures, our continued focus on cost efficiencies should also support margin resilience," Ogunsanya concluded.

Related posts:

*Top image source: jbdodane on Flickr CC 2.0

— Matshepo Sehloho, Associate Editor, Connecting Africa

Innovation hub

Story

Zoho eyes African expansion, adds second SA office

Indian multinational tech company, Zoho, is opening its second office in South Africa as it eyes further expansion in the Middle East and Africa.

Story

Hot startup of the month: Mauritius' Ojimah

This month's hot startup is a Mauritian multichannel digital platform, Ojimah, that is on a mission to streamline African travel.

More Innovation hub

Partner perspectives

All Partner Perspectives

Africa Tech Perspectives

Story

Women in Tech: Spotlight on inclusivity with Digital Council Africa's Juanita Clark

Digital Council Africa founder and CEO, Juanita Clark, talks to Connecting Africa as part of our Women's Month series about her career and what needs to be done to make the tech industry intentionally inclusive.

Story

Women in Tech: Spotlight on legal tech with Life.file's Sinal Govender

Life.file co-founder, Sinal Govender, talks to Connecting Africa as part of our Women's Month series about her career and how we can encourage more young girls to enter the legal tech field.

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

More AfricaCom perspectives

Latest video

More videos

Guest Perspectives

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.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Sponsored video

More videos

Flash poll

All polls

Like us on Facebook

Newsletter Sign Up


Sign Up