Economy
Airtel Africa Grows Net Profit by 80% on Stable Net Finance Costs
By Dipo Olowookere
One of the leading telecommunications, Airtel Africa Plc, has reported an 80.2 per cent increase in its net profit for the accounting year ended March 31, 2022, despite a rise in tax charges.
The firm posted a post-tax profit of $755 million in the year under review compared with the $415 million recorded in the preceding year and was driven by higher operating profits and stable net finance costs amid a 48.2 per cent hike in tax payment caused by higher withholding tax on dividends by subsidiaries.
Analysis of the topline of the results showed that the revenue generated in the full year rose to $4.7 billion from $3.9 billion, with growth recorded across all its regions and key services.
Nigeria posted a 27.7 per cent in turnover, East Africa expanded by 22.7 per cent, while Francophone Africa grew by 17.2 per cent.
In terms of services, voice revenue grew by 15.4 per cent to $2.4 billion from $2.1 billion, data revenue increased by 34.6 per cent to $1.5 billion from $1.2 billion, and mobile money revenue grew by 34.9 per cent to $553 million from $401 million.
In the period under consideration, Airtel Africa was able to boost its earnings as a result of the increase in its customer base by 8.7 per cent, with the introduction of new SIM registration regulations in Nigeria contributing to the slow growth, though its customer base in the country, its biggest market, now stands at 128.4 million after addition of 2.4 million new customers.
In the year, the telco said it recorded an operating profit of $1.5 billion, 37.2 per cent higher than the $1.1 billion achieved a year earlier due to strong revenue growth and improvements in operating efficiency across all its regions.
Operating profit included a one-time cost of $32 million consisting of a $12 million provision for the expected settlement of a contractual dispute in which one of the group’s subsidiaries is a party, and $20 million costs relating to an agreement on historical spectrum fees in one of its.
This compared to the prior year which included a gain of $20 million for a one-time settlement in Niger, which was partially offset by one-off costs of $6 million in Francophone Africa.
As for the EBITDA, it grew by 29.0 per cent to $2.3 billion as a result of revenue growth and improved operating efficiencies.
While commenting on the results, the chief executive of Airtel Africa, Mr Segun Ogunsanya, said the company has again demonstrated its desire to continue to create value for customers and shareholders.
“We have delivered strong double-digit growth in revenues across all our regions and all our key services, with improving margins driven by strong cost control, and expanding cash generation which is enabling us to continue to invest in our network and services and expand our distribution, as well as strengthening our balance sheet and increasing our returns to shareholders. We are connecting more customers in new and existing coverage areas and driving usage levels and ARPUs to new highs,” he said.
“While the fundamentals of our six-pillar growth strategy remain unchanged, we are looking to accelerate our performance through a greater focus on digitalisation and we have underpinned our strategic pillars with our sustainability ambition,” he further said.
Mr Ogunsanya disclosed that “long-term opportunities for us remain attractive,” noting that the team will “continue to work actively to mitigate all our material risks and to deliver value for all our stakeholders.”
“There are increasing challenges from global inflationary pressures, but we continue to target revenue growth ahead of the market and moderate margin expansion,” he assured.
By Adedapo Adesanya
The president of the Dangote Group, Mr Aliko Dangote, met with President Bola Tinubu on Monday to discuss and address concerns about the growing volatility in the global oil market and its impact on Nigerians.
Petrol prices have jumped to as high as N1,400 per litre amid the continuous rise in prices of crude oil in the global market as a result of the Middle East war. Brent crude rose above $100 per barrel due to compounding supply constraints, though it closed below the mark yesterday.
Mr Dangote, whose company controlled about 60 per cent of Nigeria’s domestic supply pre-war, speaking after the meeting, said that although Nigeria is not directly involved in the war, the ripple effects of global oil price fluctuations would inevitably be felt.
“It means quite a lot. We don’t have much to do with it, but I know the world is a global village. And it definitely will affect us, unfortunately, but we pray this situation will be sorted out,” he said after his visit to President Tinubu in Lagos yesterday.
He warned that a prolonged crisis could further destabilise economies, particularly in Africa, where fiscal buffers are limited, and debt pressures remain high.
“If it doesn’t de-escalate, we’ll end up paying high prices, like what I said earlier on CNN. Africa is very busy paying debt, and putting this again on top of us is going to add a lot of hardship on people, on the government, on the people, on everybody, for something that we have no involvement in.”
He stressed that energy costs are central to nearly all sectors of the economy, meaning sustained increases would have widespread and cascading effects on livelihoods and production.
He explained that governments could face mounting fiscal strain as subsidies rise and revenues fluctuate under unstable global oil market conditions.
Mr Dangote added that Africa’s rising debt burden could worsen under prolonged instability, further limiting fiscal space and weakening economic resilience.
“Africa is already grappling with debt, and additional shocks will only compound hardship for governments and the people,” he said.
He said escalating energy costs would disrupt nearly every sector, including small enterprises, manufacturing chains, logistics operations and household consumption patterns.
The business mogul noted that some countries were already adopting coping strategies such as reduced workdays, energy rationing and remote working arrangements.
Mr Dangote said such measures, while necessary, could reduce productivity, slow economic output and affect livelihoods, particularly among vulnerable populations.
He urged global leaders to prioritise de-escalation, stressing that many Africans rely on daily earnings and remain highly exposed to economic shocks.
By Aduragbemi Omiyale
A Community Development Service (CDS) group focused on investment education for corps members is to be established by the National Youth Service Corps (NYSC) in partnership with the Securities and Exchange Commission (SEC).
Both organisations recently sealed a Memorandum of Understanding (MoU) for this new initiative, which will promote sound investment habits among Nigerian youths, equip corps members with essential financial knowledge and help them avoid fraudulent schemes.
Under the agreement, the NYSC and SEC will work together on joint awareness campaigns, utilising various channels and platforms, including social media, traditional media, and community outreach, to disseminate information on safe investment and expose fraudulent schemes.
They will also agree on mechanisms for sharing relevant data and reporting on the progress and impact of the collaborative initiatives.
Specifically, the capital market regulator will develop and provide relevant and up-to-date educational content, materials, and training modules on capital market operations, safe investment practices, and the identification and avoidance of Ponzi schemes.
The agency will also be responsible for the content, resources and funding of training sessions for selected corps members and NYSC supervisors who will serve as trainers and facilitators in their respective communities.
On its part, the NYSC will facilitate the integration of anti-Ponzi scheme education into its Education and Enlightenment CDS programme, which could be through dedicated sessions, workshops, or awareness campaigns during orientation camps and throughout the service year.
The Director General of SEC, Mr Emomotimi Agama, expressed satisfaction with the collaboration, saying it will promote financial literacy and sound investment habits among young Nigerians.
His counterpart at the NYSC, Brig-Gen Olakunle Nafiu, lauded the initiative, stressing that it will help in enhancing public awareness campaigns against illegal financial schemes across all Local Government Areas in the country, among other objectives.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange opened the week on a positive note after it appreciated by 0.84 per cent on Monday, March 23.
Trading activity returned yesterday after a two-day break last Thursday and Friday to celebrate the end of Ramadan.
The market capitalisation was up by N20.68 billion to N2.482 trillion from N2.461 trillion, and the NASD Unlisted Security Index (NSI) increased by 34.68 points to 4,149.38 points from 4,114.75 points.
The bourse was bullish amid a 1.34 per cent decline in the share price of Geo-Fluids Plc at the close of transactions. The loss was offset by the 3.45 per cent surge in the value of FrieslandCampina Wamco Plc.
A look at the trading data indicated that the activity was weaker yesterday, as the trading volume, value, and number of deals all tumbled.
There was a 99.9 per cent slip in the volume of securities to 412,260 units from the 400.8 million units recorded in the preceding session. The value of securities fell by 99.4 per cent to N7.37 million from N1.2 billion, and the number of deals went down by 31.9 per cent to 32 deals from 47 deals.
Central Securities Clearing System (CSCS) Plc ended the day as the most traded stock by value on a year-to-date basis with 38.7 million units sold for N2.4 billion. Infrastructure Guarantee Credit Plc followed with 400 million units valued at N1.2 billion, and Okitipupa Plc occupied the third spot with 6.4 million units traded for N1.2 billion.
Resourcery Plc closed the trading session as the most active by volume on a year-to-date basis with 1.1 billion units worth N415.7 million, trailed by Infrastructure Credit Plc with 400 million units transacted for N1.2 billion, and Geo-Fluids Plc with 131.1 million units exchanged for N505.6 million.
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