24th Jul 2020 11:11
(Alliance News) - Airtel Africa PLC on Friday marked a good start to its financial year with substantial revenue increases in most areas despite the impact of the Covid-19 pandemic.
The Africa-focused mobile operator said revenue in the first quarter ended June 30 increased by 6.9% to USD851 million from USD796 million in the year prior, with a constant currency revenue growth of 13% this quarter.
Voice was the only area to suffer a drop in the first quarter, down 3.2% to USD454 million from USD469 million a year prior, and down 2.2% at constant currency. Meanwhile, data revenue increase 28% to USD265 million from USD207 million, up 36% at constant currency, and mobile money revenue rose by 20% to USD81 million from USD68 million, up 26% at constant exchange rates.
Revenue in Nigeria and East Africa increased 8.9% and 10%, respectively, while Francophone Africa lagged behind and saw an increase of just 0.4%. At constant currency, revenue rose by 17% in Nigeria, 18% in East Africa and 2.2% in Francophone Africa.
Airtel Africa said underlying earnings before interest, tax, depreciation and amortisation was USD375 million in the quarter, up 7.8% year-on-year from USD348 million. Airtel Africa's net debt to underlying Ebitda was 2.2x in the quarter compared to 3.0x in the year prior.
Pretax profit in the quarter took a substantial knock of 33% to USD111 million from USD167 million year on year.
The company also highlighted that its customer base grew by 12% to 111.5 million.
Operating costs were up on the year prior to USD210 million from USD186 million.
Chief Executive Raghunath Mandava said: "The outlook remains uncertain, particularly regarding a so called potential second wave of infections and the actions governments will decide to take in that event.
However, these results are further evidence of the growth opportunities our markets offer and the effectiveness of our strategy to focus on winning customers, investing in our network and expanding our voice, data and mobile money businesses."
Airtel Africa shares were down 2.7% at 62.27 pence in London on Friday morning.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Airtel Africa