26th Jul 2019 11:32
(Alliance News) - Airtel Africa PLC on Friday reported an increase in revenue in the first quarter of its current financial year and said it is on track to roll out its services in Nigeria.
The provider of telecommunications and mobile money services said revenue in the three months to the end of June increased by 6.9% to USD759.9 million, with constant currency growth of 10%.
Revenue growth was driven by double-digit growth in Nigeria and East Africa, Airtel Africa explained, partially offset by a decline in revenue in Rest of Africa.
"These results, which are in line with our expectations, are clear evidence of the effectiveness of our strategy across Voice, Data and Mobile Money," said Chief Executive Raghunath Mandava.
Constant currency revenue in Voice - the company's largest unit - increased by 3.2%, data revenue increased by 36% and Mobile Money revenue grew by 42%, Airtel Africa said.
Turning to expenses, finance costs increased to USD81.5 million, largely as a result of lapping one-off benefits incurred in the prior year and foreign exchange impact on debt, which more than offset some derivative gains and a 20% decrease in interest costs as a result of lower debt.
Looking ahead, Mandava said: "The business continues to show momentum and we are confident of delivering sustained growth across Voice, Data and Mobile Money, underpinning our medium-term aspirations for revenue and profit growth."
The company also said it continued to invest in its 4G network, adding nearly 1,500 sites in the quarter. Airtel Africa also continues to prepare for the launch of its Mobile Money business in Nigeria, it said, after securing approval of the brand name.
Airtel Africa shares were trading 1.0% higher on Friday in London at 70.20 pence each.
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