23rd Oct 2020 10:16
(Alliance News) - Airtel Africa PLC on Friday said it delivered a "strong set of results" for the first half of 2020, with consistent double-digit revenue growth and stronger performance in the second quarter.
The Africa-focused mobile operator said revenue increased by 11% to USD1.82 billion from USD1.65 billion a year ago, with second quarter revenue growth of 14%
"Growth was recorded across all regions: Nigeria up 20.2%, East Africa up 21.9% and Francophone Africa up 4.4%, and services, with voice revenue up by 7.0%, data by 33.4% and mobile money by 30.4%," the company explained.
Reported operating profit for the half year was USD472 million, up 20% year-on-year, as a result of strong revenue growth and lower operating expenditures in proportion to revenue. Pretax profit, however, was down 11% at USD281 million on absence of exceptional prior year gains.
Underlying earnings before interest, tax, depreciation and amortisation - the company's preferred profit measure - amounted to USD812 million, up 13% year-on-year, driven by revenue growth and efficiency in operating expenses.
Airtel Africa said its customer base grew by 12% to 116.4 million in the first half.
The company declared an declared an interim dividend of 1.5 US cents per share in line with its new progressive dividend policy to focus on growth opportunities and faster deleveraging. A year ago the company paid 3 cents per share in dividend.
Chief Executive Officer Raghunath Mandava said: "In these exceptional circumstances, in the first half, we delivered a strong set of results and as lockdown restrictions eased during Q2 our performance continued to improve with constant currency revenue growth of 19.6%, up 6.6% from the prior quarter.
"We remain alert to the potential for further disruptions from a second wave of COVID-19 across Africa, and the associated actions of governments to minimise contagion. Nevertheless, we are in a strong financial position to capture the opportunities in a fast-growing region that is vastly under-penetrated in terms of mobile and banking services. We remain confident of delivering long term sustained growth for our shareholders."
Airtel Africa shares were down 4.9% at 61.60 pence each in London on Friday morning.
By Tapan Panchal; [email protected]
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