Airtel Africa, the leading provider of mobile services in Africa, has announced its intention to launch a share buy-back programme of up to $100m, starting in March 2024, after reporting strong financial and operational performance for the nine-month period ended 31 December 2023.
The company said it had sustained its operating momentum despite continued foreign exchange headwinds, especially in Nigeria, its largest market, where the naira devalued significantly in June and November 2023.
The company’s revenue in constant currency grew by 20.2%, with the third quarter growth accelerating to 21.0%. However, reported currency revenues declined by 1.4% to $3,861m, as currency devaluation continued to impact reported revenue trends.
The company’s profit after tax was $2m in the period, primarily impacted by significant foreign exchange losses, particularly the $330m exceptional loss after tax following the devaluation of the Nigerian naira and the Malawian kwacha in 2023.
The company’s earnings per share (EPS) before exceptional items was 7.1 cents, a decline of 34.6%. Basic EPS at negative (1.6 cents) compares to 12.5 cents in the prior period, impacted by the significant derivative and foreign exchange losses as explained above.
The company’s total customer base grew by 9.1% to 151.2 million, driven by the increased penetration of mobile data and mobile money services. Data customers increased by 22.4% to 62.7 million and mobile money customers increased by 19.5% to 37.5 million.
The company’s mobile money transaction value increased by 41.3% in constant currency, with the third quarter annualised transaction value of $116bn in reported currency.
The company’s capital expenditure (capex) of $494m was 8.2% higher compared to the prior period. Capex guidance for the full year remains between $800m and $825m as the company continues to invest for future growth.
The company’s leverage of 1.3x in December 2023, improved from 1.4x in the prior period. The remaining debt at the holding company (HoldCo) is $550m, falling due in May 2024. Cash at the HoldCo was $560m at the end of the period and the company is expecting to fully repay the HoldCo debt when due.
The company’s board said that in light of the HoldCo cash accretion and where leverage is today, and in view of the consistent strong operating cash generation of the company, it intends to launch a share buy-back programme of up to $100m, starting early March 2024 over a 12-month period.
The company also highlighted its sustainability strategy, which includes its landmark five-year $57m partnership with UNICEF, launched across 10 of its markets, providing access to educational resources, free of charge, on its way to transforming the lives of over one million children through its educational programmes by 2027.
