Airtel Africa post-tax profit dips 4.2% in 2019/2020

Airtel Africa’s financial statement for 2019/02020 has shown that its profit-after tax declined by 4.2 per cent to $408.0 million.

The financial statement which was released to the Nigerian Stock Exchange (NSE) on Wednesday, showed that revenue was up 11.2 per cent to $3.42 billion from $3.08 billion at the end of 2019, underpinned on voice revenue which was up by 5.2 per cent, data by 39 per cent and mobile money by 37.2 per cent.

The telecom company, whose financial year ends on March 31, saw its operating profit grew by 22.8 per cent to $901m as expenses increased by 8.6 per cent to $1.9 2 billion during this period.

Net finance costs increased by $18 million driven by higher other finance costs, which more than offset reduced interest costs of $64 million because of lower debt.

“The increase in other finance costs was primarily driven by the higher impact of devaluation on foreign exchange denominated liabilities largely driven by $75m increase in Q4 2020 as a result of the devaluation of Nigerian naira, Kenyan and Ugandan shilling, and Zambian kwacha,” the company explained.

Basic earnings per share (EPS) declined 47 per cent to $10.3, due to an increase in shares issued.

Underlying EBITDA grew by 13.8 per cent to $1,515m. This was largely driven by 16.3% constant currency growth, partially offset by currency devaluation.

Meanwhile, Airtel Africa board has proposed a final dividend of 3 cents per ordinary share.

Commenting of the performance of the company, Raghunath Mandava, Chief Executive Officer, Airtel Africa said, “These are a strong set of results which delivered against our aspirations set out at the time of the IPO, with performance sequentially improving during the year. Revenue increased by 11.2%, 13.8% in constant currency, and underlying EBITDA by 13.8%, 16.3% in constant currency, to a reported $1,515m, underpinned by a significant improvement in our Free cash flow generation and reduced leverage. These results also demonstrate the strength and resilience of our business and the effectiveness of our strategy – with all three business services, voice, data and mobile money, contributing to revenue growth. We have also continued to invest in future growth opportunities as we expanded our distribution, modernised and expanded our network with 65% of sites now on 4G, acquired new spectrum in Nigeria, Tanzania, Malawi and Chad, and entered into strategic partnerships in our mobile money business.”