By Dipo Olowookere
The board of Airtel Africa Plc has released the financial statements of the company for the first quarter ended June 30, 2020.
The firm, which has already commenced its 2021 fiscal year, recorded a 6.9 per cent growth in the revenue generated in the period. This rose to $851 million from $796 million of the corresponding period of last year.
Business Post observed that this increase in turnover was influenced by the data consumed by its customers, who relied on the network during the lockdown imposed on its operating markets, including Nigeria.
The revenue generated from data increased by 28.0 per cent to N$265 million from $207 million, while revenue from voice calls dropped 3.2 per cent to $454 million from $469 million.
Also, mobile money revenue increased in the first quarter by 20.0 per cent to $81 million from $68 million.
However, Airtel Africa attributed its revenue growth largely to an increase in its customer base, which went up by 11.8 per cent to 111.5 million and ARPU growth of 1.6 per cent in constant currency.
Further analysis showed that revenue growth was recorded across all the regions, with Nigeria up by 17.1 per cent, East Africa up by 17.5 per cent and Francophone Africa up by 2.2 per cent.
During the period under consideration, the expenses incurred by the company increased by 6.0 per cent to $479 million from $452 million, while the operating profit grew by 12.9 per cent to $210 million from $186 million, with the net finance costs rising by 21.0 per cent to $99 million from $82 million as a result of higher other finance costs, which more than offset reduced interest costs of $5.5 million due to lower debt.
The increase in other finance costs was primarily driven by the higher impact of devaluation on foreign exchange denominated liabilities and borrowings largely as a result of devaluation in Zambian kwacha, Madagascar Ariary and Seychelles Rupee.
The underlying EBITDA stood at $375 million in Q1 2021 versus $348 million in Q1 2020, while the EBITDA margin increased to 44.1 per cent from 43.7 per cent.
In the first quarter of the year, the pre-tax profit of Airtel Africa went down by 33.4 per cent to $111 million from $167 per cent, while the profit after tax (PAT) shed 56.9 per cent to $57 million from $132 million.
According to the firm, the post-tax profit was down because of a one-off gain of $72 million related to the expired indemnity to certain pre-IPO investors in the same period last year, higher finance costs and tax.
Excluding one-off benefits in the previous quarter, profit after tax for the quarter reduced mainly due to higher derivative and exchange loss of $19.4 million in Q1 2021, the company said.
In addition, the earnings per share (EPS) depreciated by 72.8 per cent to $1.1 cents, due to an increase in shares issued.
Airtel Africa said if all the shares as of June 30, 2020, had been issued on April 1, 2019, the restated basic EPS for June 2019 would have been $3.3 cents. Restated EPS reduced as a result of higher finance costs and tax.
Adedapo Adesanya