Airtel Africa plc
Results for half year ended 30 September 2024
25 October 2024
Sustained operating momentum reflecting continued execution against significant growth opportunity
Operating highlights
· Total customer base grew by 6.1% to 156.6 million. Data customer penetration continues to rise, driving a 10.4% increase in data customers to 66.0 million. Data usage per customer increased by 30.9% to 6.6 GBs, with smartphone penetration increasing 5.3% to reach 42.9%.
· Mobile money subscribers of 41.5 million, increased by 13.4% reflecting our continued investment into distribution to support increased financial inclusion across our markets. Transaction value increased by 30.1% in constant currency2 with annualised transaction value of
· Data ARPU growth of 13.5% and mobile money ARPU growth of 10.9% in constant currency continued to support overall ARPU's which rose 11.1% YoY in constant currency.
· Customer experience remains core to our strategy with sustained network investment during the period. Data capacity across our network has increased by 20% with the rollout of over 2,800 sites and around 3,500 kms of fibre.
Financial performance
· Revenue in constant currency grew by 19.9% in H1'25 with growth accelerating to 20.8% in Q2'25 driven by an acceleration of growth in
· A substantial increase in fuel prices across our markets and the lower contribution of
· Profit after tax of
· EPS before exceptional items declined from
Capital allocation
· Capex at
· Over the year we have significantly reduced our foreign currency debt exposure, having paid down
· To secure beneficial contract structures and further enhance our partnership with ATC, we have extended our tower lease agreements for approximately 7,100 sites in four markets for a further 12-year period. The new agreements have a focus on renewable energy investment which will drive operating cost efficiencies over the medium-term and will have a neutral to positive impact on near-term free cash flow. The renewals has resulted in a
· The Board has declared an interim dividend of
Sunil Taldar, Chief executive officer, on the trading update:
"The sustained operating momentum over the period is testament to our teams' ability to execute our strategy brilliantly. During the period we refined our strategy to significantly increase our focus on delivering best in class experience to our customers. To meet our customer's expectations, we will strengthen our 'go-to-market' through enhanced distribution, simplified customer journeys and best in class network experience. This will further unlock the significant opportunity
The scale of the opportunity across our markets remains substantial. A young and fast-growing population, combined with low levels of SIM and banking penetration on one hand, and increasing smartphone and digital payment adoption across our existing base on the other, provides a unique opportunity to leverage our extensive infrastructure for sustained growth in Sub-Saharan Africa.
We have already seen strong progress, with an acceleration in constant currency revenue growth over the last quarter as demand for our services remains strong, reflected in the 48% growth in data volumes over the first half of the year, despite the challenging backdrop in some of our markets.
Furthermore, we have seen our cost optimisation programme already show initial green shoots, which combined with operational leverage, has contributed to an expansion of our EBITDA margins in Q2'25 compared to the previous quarter. Foreign currency debt has fallen to just 11% of market debt at the end of September which reflects the work we have undertaken to de-risk the balance sheet.
We remain absolutely focussed on executing against our strategy to efficiently and effectively deliver essential services to improve the lives, communities and economies we serve. The growth opportunity across our markets remains compelling and we continue to focus on margin improvement."
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GAAP measures |
|||
|
Description |
Sep-24 |
Sep-23 |
Reported |
|
$m |
$m |
change |
|
|
Revenue |
2,370 |
2,623 |
(9.7%) |
|
Operating profit |
706 |
885 |
(20.3%) |
|
Profit/(Loss) after tax |
79 |
(13) |
726.3% |
|
Basic EPS ($ cents) |
0.8 |
(1.5) |
156.4% |
|
Net cash generated from operating activities |
979 |
1,121 |
(12.7%) |
|
Alternative performance measures (APM) 1 |
||||
|
Description |
Sep-24 |
Sep-23 |
Reported |
Constant |
|
$m |
$m |
change |
change |
|
|
Revenue |
2,370 |
2,623 |
(9.7%) |
19.9% |
|
EBITDA |
1,087 |
1,302 |
(16.5%) |
13.5% |
|
EBITDA margin |
45.8% |
49.6% |
(378) bps |
(258) bps |
|
EPS before exceptional items ($ cents) |
4.9 |
7.0 |
(30.3%) |
|
|
Operating free cash flow |
771 |
990 |
(22.2%) |
|
(1) Alternative performance measures (APM) are described on page 46
(2) An explanation of constant currency adjustments is described on page 48
About Airtel Africa
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in
Airtel Africa offers an integrated suite of telecoms solutions to its subscribers, including mobile voice and data services as well as mobile money services, both nationally and internationally. We aim to continue providing a simple and intuitive customer experience through streamlined customer journeys.
Enquiries
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Airtel Africa - Investor Relations Alastair Jones |
+44 7464 830 011 +44 207 493 9315 |
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Hudson Sandler Nick Emily Dillon |
+44 207 796 4133 |
Conference call
Management will host an analyst and investor conference call at 13:00pm
To receive an invitation with the dial in numbers to participate in the event, please register beforehand using the following link:
Conference call registration link
Key consolidated financial information
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Description |
Unit of measure |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Profit and loss summary |
|
|
|
|
|
|
|
|
|
|
Revenue 1 |
$m |
2,370 |
2,623 |
(9.7%) |
19.9% |
1,214 |
1,246 |
(2.6%) |
20.8% |
|
Voice revenue |
$m |
960 |
1,169 |
(17.9%) |
9.4% |
484 |
548 |
(11.6%) |
9.3% |
|
Data revenue |
$m |
844 |
915 |
(7.7%) |
28.4% |
435 |
429 |
1.4% |
30.2% |
|
Mobile money revenue 2 |
$m |
466 |
416 |
11.9% |
28.8% |
244 |
215 |
13.5% |
29.1% |
|
Other revenue |
$m |
205 |
216 |
(5.2%) |
25.4% |
105 |
102 |
3.0% |
27.8% |
|
Expenses |
$m |
(1,295) |
(1,337) |
(3.1%) |
25.5% |
(654) |
(635) |
3.0% |
24.8% |
|
EBITDA 3 |
$m |
1,087 |
1,302 |
(16.5%) |
13.5% |
564 |
620 |
(9.1%) |
15.6% |
|
EBITDA margin |
% |
45.8% |
49.6% |
(378) bps |
(258) bps |
46.4% |
49.8% |
(334) bps |
(208) bps |
|
Depreciation and amortisation |
$m |
(381) |
(417) |
(8.7%) |
21.3% |
(193) |
(197) |
(2.1%) |
22.2% |
|
Operating profit |
$m |
706 |
885 |
(20.3%) |
9.7% |
371 |
423 |
(12.3%) |
12.5% |
|
Other finance cost - net of finance income 4 |
$m |
(297) |
(402) |
(26.1%) |
|
(158) |
(190) |
(17.3%) |
|
|
Finance cost - exceptional items 5 |
$m |
(231) |
(471) |
(50.9%) |
|
(109) |
- |
0.0% |
|
|
Total finance cost |
$m |
(528) |
(873) |
(39.5%) |
|
(267) |
(190) |
40.2% |
|
|
Profit before tax |
$m |
178 |
12 |
1370.1% |
|
104 |
233 |
(55.3%) |
|
|
Tax |
$m |
(179) |
(179) |
0.1% |
|
(94) |
(95) |
(1.1%) |
|
|
Tax - exceptional items 5 |
$m |
80 |
154 |
(48.0%) |
|
38 |
- |
0.0% |
|
|
Total tax charge |
$m |
(99) |
(25) |
(298.4%) |
|
(56) |
(95) |
(41.0%) |
|
|
Profit/(Loss) after tax |
$m |
79 |
(13) |
726.3% |
|
48 |
138 |
(65.0%) |
|
|
Non-controlling interest |
$m |
(48) |
(42) |
16.6% |
|
(24) |
(23) |
6.5% |
|
|
Profit attributable to owners of the company - before exceptional items |
$m |
182 |
262 |
(30.8%) |
|
95 |
115 |
(17.2%) |
|
|
Profit/(Loss) attributable to owners of the company |
$m |
31 |
(55) |
156.1% |
|
24 |
115 |
(78.9%) |
|
|
EPS - before exceptional items |
cents |
4.9 |
7.0 |
(30.3%) |
|
2.6 |
3.1 |
(16.4%) |
|
|
Basic EPS |
cents |
0.8 |
(1.5) |
156.4% |
|
0.6 |
3.1 |
(79.1%) |
|
|
Weighted average number of shares |
million |
3,727 |
3,751 |
(0.6%) |
|
3,717 |
3,751 |
(0.9%) |
|
|
Capex |
$m |
316 |
312 |
1.3% |
|
169 |
172 |
(1.6%) |
|
|
Operating free cash flow |
$m |
771 |
990 |
(22.2%) |
|
395 |
448 |
(12.0%) |
|
|
Net cash generated from operating activities |
$m |
979 |
1,121 |
(12.7%) |
|
565 |
541 |
4.6% |
|
|
Net debt |
$m |
5,155 |
3,327 |
|
|
5,155 |
3,327 |
|
|
|
Leverage (net debt to EBITDA) |
times |
2.3x |
1.3x |
|
|
2.3x |
1.3x |
|
|
|
Return on capital employed |
% |
19.8% |
24.7% |
(489) bps |
|
21.8% |
23.7% |
(189) bps |
|
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
ARPU |
$ |
2.6 |
3.0 |
(16.3%) |
11.1% |
2.6 |
2.9 |
(8.9%) |
13.0% |
|
Total customer base |
million |
156.6 |
147.7 |
6.1% |
|
156.6 |
147.7 |
6.1% |
|
|
Data customer base |
million |
66.0 |
59.8 |
10.4% |
|
66.0 |
59.8 |
10.4% |
|
|
Mobile money customer base |
million |
41.5 |
36.5 |
13.4% |
|
41.5 |
36.5 |
13.4% |
|
(1) Revenue includes inter-segment eliminations of
(2) Mobile money revenue post inter-segment eliminations with mobile services were
(3) EBITDA includes other income of
(4) Other finance cost - net of finance income of
(5) Finance cost - exceptional items of
Financial review for the half year ended 30 September 2024
Revenue
Group revenue in reported currency declined by 9.7% to $2,370m , with constant currency growth of 19.9%. Group mobile services revenue grew by 18.4% in constant currency, with voice revenue growth of 9.4% and data revenues increasing by 28.4% over the period. In Q2'25, constant currency revenue growth accelerated to 20.8% from 19.0% in Q1'25 primarily driven by 38.2% growth in Nigeria and Francophone Africa revenue growth of 9.0% in Q2'25 respectively. In H1'25, mobile money revenue grew by 28.8% in constant currency, primarily driven by continued strong growth in East Africa .
Reported currency revenue growth was particularly impacted by significant currency devaluations in Nigeria , Malawi , Zambia and Tanzania . In particular, the naira devalued from a weighted average NGN/USD rate of 610 in the prior half-year period to NGN/USD 1,484 in the current period.
EBITDA
Reported currency EBITDA declined by 16.5% to $1,087m reflecting the impact of currency devaluation over the period, particularly in Nigeria . In constant currency, EBITDA increased by 13.5% with EBITDA margins of 45.8%, a decline of 378bps. The lower contribution of Nigeria following the significant naira depreciation and a significant increase in fuel prices (mainly in Nigeria by around 90%), were the primary drivers of the margin decline over the last year. Mobile services EBITDA increased 9.9% in constant currency with EBITDA margin at 45.1%, whilst mobile money EBITDA margins of 53.0%, increased 167bps in constant currency, supporting growth of 33.0%.
Following the launch of a comprehensive cost efficiency programme, EBITDA margins in Q2'25 increased to 46.4% from 45.3% in the previous quarter (Q1'25).
Finance costs
Total finance costs for the half year ended 30 September 2024 was
Profit/(Loss) before tax
Profit before tax at
Taxation
Total tax charges were
Tax charge of
Profit/(Loss) after tax
Profit after tax of
Basic EPS
Basic EPS at
Leverage
We have continued to improve our debt structure over the last year, having repaid the outstanding
As explained in 'Other significant updates' on page 7, we have extended our tower lease agreements with ATC for approximately 7,100 sites in
GAAP measures
Revenue
Reported revenue of
Reported mobile services revenue at
Operating profit
Operating profit in reported currency declined by 20.3% to
Total finance costs
Total finance costs of
The Group's effective interest rate increased to 13.2% compared to 8.8% in the prior period, largely driven by higher local currency debt at the OpCo level, in line with our strategy of localising debt at OpCo, and the repayment of
Taxation
Total tax charges of
Basic EPS
Basic EPS at
Net cash generated from operating activities
Net cash generated from operating activities was
Alternative performance measures[2]
EBITDA
EBITDA of $1,087m , declined by 16.5% in reported currency, and increased by 13.5% in constant currency. Growth in constant currency EBITDA was led by revenue growth and supported by continued improvement in operating efficiencies offset by the impact that inflationary cost pressures in a number of markets. The EBITDA margin declined by 378 basis points in reported currency to 45.8% reflecting the impact of lower contribution of Nigeria post significant naira devaluation and inflationary cost pressures.
The gap between constant currency and reported currency EBITDA growth was due to the currency devaluations between the periods, mainly in the Nigerian naira, the Malawian kwacha, the Zambian kwacha, and the Tanzanian shilling partially offset by an appreciation in the Kenyan shilling.
Tax
The effective tax rate was 40.3%, compared to 39.0% in the prior period. The effective tax rate is higher than the weighted average statutory corporate tax rate of approximately 32%, largely due to increase in income tax rate in one of the subsidiaries, the profit mix between various OpCos and withholding taxes on dividends by subsidiaries.
Exceptional items
The exceptional item of
EPS before exceptional items
EPS before exceptional items of
Operating free cash flow
Operating free cash flow was
Other significant updates
Renewal of tower lease agreements with ATC
On 30 September 2024, the Company renewed tower lease agreements with American Tower Corporation (ATC) for approximately 7,100 sites across
Integral to the contractual terms is the focus on renewable energy solutions across a significant number of sites, particularly in
Under IFRS16 accounting standards, the extension of these tower lease agreements to 12 years will result in an approximate
In addition, there will be increased finance costs in the early years of the contract term and a marginal increase in depreciation due to the recognition of the right-of-use asset on renewal. The impact from these contract renewals on profit after tax in the first year is expected to be approximately
Importantly, there will be a neutral to positive impact on free cash flow for the Company due to these renewals in the near-term.
The renewals reinforce our commitment to enhance network capacity and reliability, enabling our ambition to offer a best-in-class network experience to our customers.
On 6th September 2024, Airtel Kenya has received confirmation from the regulator on extension of existing Network Facility Provider, Application Service Provider, Content Service Provider and Internationally Gateway Station and Service licence as well as its spectrum in 900 MHz, 1800 MHz and 2100 MHz that were due for renewal in January 2025 for a period of 24 months effective January 2025.
Repayment of remaining
On 20 May 2024, the Company announced that it has repaid in full the 5.35% Guaranteed Senior Notes maturing in May 2024. This bond repayment of
At the time of the IPO in June 2019, the Group had
The current leverage and capital structure is a reflection of the Group's successful capital allocation strategy that has been in place since our IPO, and it will aim to continue reducing foreign currency debt obligations across its OpCo's.
Update on share buy-back programme
On 1 February 2024, the Company announced that in light of the increase in HoldCo cash, current leverage and the consistent strong operating cash generation, the Board intended to launch a share buy-back programme of up to
On 1 March 2024, Airtel Africa plc announced the commencement of its share buyback programme. As at the end of September 2024, the Company has purchased 61 million shares for a total consideration of
Directorate changes
On 9 May 2024, Airtel Africa plc announced the appointment of Paul Arkwright, CMG, as an independent non-executive director of the Company, with immediate effect.
On 3 July 2024, following the conclusion of the AGM, John Danilovich retired as an independent non-executive director of Airtel Africa plc.
Retirement of Airtel Africa plc CEO and appointment of Successor
On 2 January 2024, Airtel Africa plc announced the retirement of Chief Executive Officer Olusegun "Segun" Ogunsanya and the appointment of Sunil Taldar, who joined Airtel Africa in October 2023 as Director - Transformation, as Chief Executive Officer (CEO). Following a transition period, Sunil Taldar has been appointed to the Board as an Executive Director and has assumed the role of CEO on 1 July 2024, at which time Segun retired from the Board and the Company. Following his retirement from Airtel Africa, Segun will be available to advise the Chairman, the Airtel Africa Board and Chief Executive Officer for a 12-month period and appointed as Airtel Africa Charitable Foundation's inaugural Chair.
Nigerian Communications Commission directive on subscriber registration compliance
In December 2023, the Nigerian Communications Commission (NCC) informed Airtel Nigeria, in an industry-wide directive, to undertake full network barring of all SIMs that have failed to submit their National Identity Numbers (NIN) on or before 28 February 2024. Likewise, customers that have submitted their NINs, but remain unverified are to be barred by 31 July 2024 (earlier deadline was 15 April 2024). Furthermore, guidelines were issued whereby no customer can have more than 4 active SIMs and all such excess SIMs must be barred by 29 March 2024. This directive is part of the ongoing Federal Government NIN-SIM harmonisation exercise requiring all subscribers to provide valid NIN information to update SIM registration records.
Airtel Nigeria has complied with the directives issued and barred all customers without NINs as well as customers with more than 4 active SIMs which had a negligible impact on revenue.
Chad License Renewal
In July 2024, Airtel Tchad S.A ("Airtel Tchad"), a subsidiary of the Group was issued with a National Telecom Operator licence for 2G/3G and 4G network. This licence renewal is with effect from April 2024 and is for a period of 10 years for a gross consideration of CFA54bn (approximately
Dividend payment timetable
The board has declared an interim dividend of
London Stock Exchange Nigerian Stock Exchange
Last day to trade shares cum dividend 6 November 2024 5 November 2024
Shares commence trading ex-dividend 7 November 2024 6 November 2024
Record date 8 November 2024 8 November 2024
Last date for currency election 25 November 2024 25 November 2024
Payment date 13 December 2024 13 December 2024
Information on additional KPIs
An investor relations pack with information on the additional KPIs and balance sheet is available to download on our website at airtel.africa/investors
Strategic overview
The Group provides telecom and mobile money services in 14 emerging markets of Sub-Saharan Africa. Our markets are characterised by young and rapidly growing population, low smartphone penetration, and relatively large unbanked populations. Unique mobile user penetration across the Group's footprint is around 48%, and banking penetration remains under 50%. These indicators illustrate the significant opportunity still available to Airtel Africa to enhance both digital and financial inclusion in the communities we serve, enriching and transforming their lives through digitalisation, whilst at the same time growing our revenues profitably across each of our key services of voice, data and mobile money.
The Group continues to invest in its network and distribution infrastructure to enhance both mobile connectivity and financial inclusion across our countries of operation. In particular, we have continued to invest in expanding our 4G and 5G network to increase data capacity, deploy new sites - especially in rural areas - thereby enhancing coverage and connectivity.
Our refreshed strategy puts the customer at the core of our strategy. We believe that by ensuring great customer experience across our network and touchpoints we will deliver on our corporate purpose of transforming lives across Africa. Our consumer centric strategy is anchored on our 6 new strategic pillars - strengthening our 'go-to-market', delivering best in class network experience, winning more in key markets, digitising and simplifying processes across the business, accelerating Airtel Money and scaling our home broadband business (HBB) and enterprise offerings.
Underpinning the Group's business strategy is our focus on cost optimisation, our ongoing sustainability strategy and the investment into our people to build and retain talent. Our sustainability strategy supports our well-established corporate purpose of transforming lives, our continued commitment to driving sustainable development and acting as a responsible business. Our sustainability strategy sets out our goals and commitments to foster financial inclusion, bridge the digital divide and serve more customers in some of the least penetrated telecommunication markets in the world.
Strengthen 'Go-to-market'
We continue to strengthen our distribution footprint, especially our exclusive channel of kiosks/mini-shops and Airtel Money Branches (AMB) along with multi-brand outlets in both urban and rural markets. During the period, the Group expanded its exclusive franchise stores, adding over 7,400 kiosks and mini shops (taking the total to 88,300 kiosks and mini shops) and adding over 1,200 Airtel Money Branches (AMB). The Group also added over 36,000 activating outlets, an increase of 11%, enabling continued expansion of our customer base and strong growth in overall revenues.
We also continue to accelerate our data revenue growth through a combination of higher mix of smartphones in our base and improving ARPUs. Our smartphone penetration stands at 42.9%, an increase of 5.3% points from H1'24 driven by our expansion of the 4G network and stronger execution. Our data consumption has increased to 7.1 GB per data user, growing by over 36% in Q2'25 driven by improved network experience and customer life-cycle management programs. A notable development is our intervention in Rwanda where we have been able to break barriers of affordability on both smartphone devices and data tariffs, thereby enabling accelerated adoption of data services during the period.
Best in class network experience
The Group remains focused on delivering best-in-class services, enhancing our 4G network availability, along with expanding newly launched 5G technology in key markets like Kenya, Nigeria, Tanzania, Uganda and Zambia. Reaching underserved communities is a key priority and we continue to expand rural coverage through new site rollouts and continue investing in spectrum and technologies to support increased capacity to facilitate our corporate purpose of transforming lives.
We have rolled out over 2,800 sites during the year and close to 4,200 4G sites. 96.6% or our sites are now 4G enabled compared to 92.3% in prior period and we have over 1,200 5G operational sites in five markets.
As part of ensuring our services are future ready, in addition to purchasing spectrum, we grew our fibre infrastructure and 5G capabilities and remain committed to our investment into data centres to further support digital inclusion across our markets. We continued to strengthen our fibre business, which is now delivering encouraging revenue growth. During the year we added a further around 3,500 km of fibre, with a total of 77,100+ km now deployed.
Overall, the capacity investment has resulted in a 20.1% increase in data capacity - reaching almost 34,000 terabytes (TB) per day, with peak hour data utilisation steadily increasing as we optimise asset performance.
Must win markets
Winning customers across all the markets through micro marketing using network and digital tools is fundamental to our strategy and will enable us to drive both financial and digital inclusion. We win in every micro segment by optimizing our network to improve customer experience or strengthen our distribution where our network is strong so that we can acquire new customers with speed and precision. There are clusters of opportunities which have been identified across all opcos which have been called out as "must win markets". To ensure that we win across all must win markets there is stepped up investment on building people capabilities and driving a culture of collaborative working across functions.
In the broader urban areas, including smaller towns and emerging suburban peripheries, some of micromarketing actions include improving indoor coverage, quality of network and delivering seamless experience by stitching our network experience through principles of community of interest. This will allow us to strengthen our position as a reliable network provider, attracting new customers and retaining our existing base.
Rural markets present a big growth opportunity given low penetration of both telecom and financial services. To tap the opportunity, our focus is on improving coverage and distribution expansion across all formats. With intensified network investment and focus on distribution excellence, we are confident that rural markets will contribute to a significant portion of our overall customer additions going forward.
Digitise and simplify
In line with our strategic pillar of "Digitize and Simplify," we have made significant strides in streamlining our digital offerings and improving customer experiences through innovative technologies. Our focus remains on enhancing digital adoption and driving operational efficiencies to simplify user journeys and unlock growth across all digital touchpoints.
The My Airtel App differentiates through a single-app strategy for both telecommunications and wallet use cases and as a result has achieved significant digital adoption and transaction growth. Over the last year we have seen a 92% growth in monthly active users of the My Airtel App, with transaction value on the app increasing by over 70%. This illustrates the growth in customer self-service in performing core communication and wallet related use cases such as airtime recharges, bundle purchase, peer-to-peer and bill payments.
We believe continued investments in digital infrastructure will enable us to accelerate productivity, while also improving experience for all stakeholders positioning Airtel for greater scalability and faster growth.
Accelerate Airtel Money
The low penetration of traditional banking services across our footprint leaves a large number of unbanked customers whose needs can be fulfilled largely through mobile money services. Our goal is to accelerate the adoption of Airtel Money across all regions, leveraging the success of our mobile money business model to expand financial access and inclusion, particularly in some of the world's most underserved communities.
During the period, our efforts were focused on expanding our ecosystem and driving customer acquisition. We introduced new international money transfer routes, rolled out new loan products, and continued to onboard more partners into our ecosystem. Additionally, a key priority was to promote digital app transactions, ensuring a seamless and more integrated experience for our customers while enhancing the overall value of our mobile money services.
We continued to strengthen our exclusive distribution network of Airtel Money Branches and Kiosks, ensuring service availability even in rural areas. The number of kiosks and mini shops grew by 9.1%, while Airtel Money branches saw an increase of over 6.7%. In addition, our non-exclusive mobile money agent network expanded by 40%, driven by the successful implementation of our digital onboarding process. These distribution efforts, combined with enhanced product offerings, led to a 13.4% growth in our mobile money customer base, which now serves 41.5 million customers, representing 26.5% of our total customer base.
Mobile money has become an increasingly vital component of our business, with an annual transaction value of $ 128 billion in reported currency. During the period, mobile money revenue contributed 19.6% to the Group's overall revenues.
Scale HBB and enterprise
Airtel's investment in 5G networks has helped power capacity to service customer need for unlimited internet service across key cities in 5 markets. The demand for these services is evident in the scale of usage, with customers consuming, on average 250GB per month across Nigeria, Tanzania, Kenya, Uganda and Zambia.
During the period we have increased our investment into dedicated outbound sales teams which are focussed on-boarding high value customers on unlimited play, utilising our expansive 4G network. Further investment in ensuring customers have a seamless on-boarding to the home broadband service with the My Airtel App has helped improve customer convenience, particularly in the product use and recharges available across multiple integrated payment channels.
Enterprise services remains a key opportunity and focus. In particular, Nxtra by Airtel - our new data centre business - has broken ground in Nigeria and is expected to deliver 38 megawatts of total capacity and host high density racks, incorporating the latest best practice in construction design. This is the first of five hyperscale data centres to be developed by Airtel Africa on the continent. In addition, the launch of 'Telesonic' will leverage its fibre infrastructure across the continent to meet the growing demand for wholesale data in Africa by offering comprehensive fibre and submarine cable solutions.
Financial review for the half year ended 30 September 2024
Nigeria - Mobile services
|
Description |
Unit of |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Summarised statement of Operations |
|
|
|
|
|
|
|
|
|
|
Revenue |
$m |
489 |
878 |
(44.3%) |
35.6% |
234 |
350 |
(33.2%) |
37.9% |
|
Voice revenue |
$m |
209 |
414 |
(49.6%) |
23.0% |
97 |
161 |
(39.7%) |
24.5% |
|
Data revenue |
$m |
229 |
385 |
(40.5%) |
44.4% |
112 |
157 |
(28.6%) |
47.3% |
|
Other revenue 1 |
$m |
51 |
79 |
(35.1%) |
58.0% |
25 |
32 |
(23.0%) |
59.0% |
|
EBITDA |
$m |
238 |
474 |
(49.7%) |
22.3% |
115 |
190 |
(39.4%) |
25.2% |
|
EBITDA margin |
% |
48.7% |
54.0% |
(526) bps |
(531) bps |
49.4% |
54.4% |
(504) bps |
(500) bps |
|
Depreciation and amortisation |
$m |
(92) |
(156) |
(41.1%) |
40.7% |
(43) |
(66) |
(34.4%) |
35.5% |
|
Operating profit |
$m |
155 |
298 |
(47.9%) |
32.5% |
72 |
116 |
(37.9%) |
35.5% |
|
Capex |
$m |
75 |
109 |
(31.3%) |
(31.3%) |
37 |
62 |
(40.3%) |
(40.3%) |
|
Operating free cash flow |
$m |
163 |
365 |
(55.2%) |
73.7% |
78 |
128 |
(38.9%) |
104.1% |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
Total customer base |
million |
48.7 |
48.6 |
0.2% |
|
48.7 |
48.6 |
0.2% |
|
|
Data customer base |
million |
26.3 |
24.2 |
8.6% |
|
26.3 |
24.2 |
8.6% |
|
|
Mobile services ARPU |
$ |
1.6 |
3.0 |
(45.8%) |
31.8% |
1.6 |
2.4 |
(34.0%) |
36.2% |
(1) Other revenue includes inter-segment revenue of $1m in the half year ended 30 September 2024 and in the prior period. Excluding inter-segment revenue, other revenue was $50m in half year ended 30 September 2024 and $78m in the prior period.
Revenue grew by 35.6% in constant currency, largely driven by continued strength in the demand for data services across the country, with growth accelerating to 37.9% in Q2'25 compared to 33.2% in Q1'25. In reported currency, revenues declined by 44.3% to $489m on account of the significant devaluation of the Nigerian naira. The constant currency revenue growth was driven by ARPU growth of 31.8% while customer growth was relatively stable following the disconnection of subscribers in compliance with the KYC directives issued by the regulator.
Voice revenue grew by 23.0% in constant currency, driven by voice ARPU growth of 19.6%.
Data revenue grew by 44.4% in constant currency, as a function of both data customer and data ARPU growth of 8.6% and 30.5%, respectively. Data usage per customer increased by 36.0% to 8.1 GB per month (from 5.9 GB in the prior period), with smartphone penetration increasing 6.2% to reach 48.5%. Smartphone data usage per customer reached 10.9 GB per month compared to 8.6 GB per month in the prior period.
EBITDA of $238m declined by 49.7% in reported currency but increased by 22.3% in constant currency. The EBITDA margin declined by 526 basis points to 48.7% reflecting continued inflationary pressures across the business, particularly from the increase in diesel prices. Average diesel prices in Nigeria increased by approximately 90% compared to the prior period. In Q2'25, EBITDA margin has improved to 49.4% from 48.2% in Q1'25.
Operating free cash flow was $163m, up by 73.7% in constant currency, largely due to the constant currency EBITDA growth and lower capex while in reported currency, operating free cash flow declined by 55.2% due to lower reported currency EBITDA following the significant naira devaluation over the year.
East Africa - Mobile services 1
|
Description |
Unit of |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Summarised statement of operations |
|
|
|
|
|
|
|
|
|
|
Revenue |
$m |
883 |
822 |
7.5% |
19.1% |
461 |
424 |
8.6% |
18.5% |
|
Voice revenue 2 |
$m |
439 |
441 |
(0.3%) |
10.9% |
229 |
229 |
(0.1%) |
9.5% |
|
Data revenue |
$m |
355 |
309 |
14.7% |
26.1% |
185 |
158 |
16.9% |
26.4% |
|
Other revenue 3 |
$m |
89 |
72 |
25.1% |
38.9% |
47 |
37 |
27.5% |
39.6% |
|
EBITDA |
$m |
418 |
408 |
2.5% |
14.2% |
221 |
213 |
3.6% |
13.9% |
|
EBITDA margin |
% |
47.3% |
49.7% |
(233) bps |
(203) bps |
47.9% |
50.2% |
(232) bps |
(191) bps |
|
Depreciation and amortisation |
$m |
(158) |
(145) |
9.3% |
16.9% |
(82) |
(71) |
15.1% |
21.5% |
|
Operating profit |
$m |
231 |
240 |
(3.9%) |
10.8% |
123 |
129 |
(4.6%) |
8.4% |
|
Capex |
$m |
156 |
107 |
46.5% |
46.5% |
79 |
53 |
49.7% |
49.7% |
|
Operating free cash flow |
$m |
262 |
301 |
(13.1%) |
0.8% |
142 |
160 |
(11.6%) |
0.4% |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
Total customer base |
million |
74.2 |
68.1 |
9.0% |
|
74.2 |
68.1 |
9.0% |
|
|
Data customer base |
million |
28.8 |
25.7 |
12.1% |
|
28.8 |
25.7 |
12.1% |
|
|
Mobile services ARPU |
$ |
2.0 |
2.1 |
(2.6%) |
7.8% |
2.1 |
2.1 |
(1.0%) |
8.0% |
(1) The East Africa business region includes Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia.
(2) Voice revenue includes inter-segment revenue of $1m in the half year ended 30 September 2024 and in the prior period. Excluding inter-segment revenue, voice revenue was $438m in half year ended 30 September 2024 and $440m in the prior period.
(3) Other revenue includes inter-segment revenue of $6m in the half year ended 30 September 2024 and in the prior period. Excluding inter-segment revenue, other revenue was $83m in half year ended 30 September 2024 and $66m in the prior period.
East Africa revenue grew by 7.5% in reported currency to $883m, and by 19.1% in constant currency. The constant currency growth was made up of voice revenue growth of 10.9%, data revenue growth of 26.1% and other revenue growth of 38.9%.
Voice revenues were supported by customer base growth of 9.0% while voice ARPU was flat. Voice ARPU's were negatively impacted by reduction in interconnect rate by regulator in Kenya, Tanzania, Uganda and Rwanda. The customer base growth was largely driven by expansion of both increased network coverage and the increasing scale of the distribution network.
Data customer base growth of 12.1% and data ARPU growth of 10.0% drove the strong performance in data revenues. Our continued investment in the network and expansion of 4G network infrastructure resulted in 98.8% of our East Africa network sites on 4G, compared to 93.9% in the prior period. Furthermore, 986 sites are 5G enabled in four markets. In the half year, total data usage per customer increased to 5.9 GB per customer per month, up by 28.4%, with smartphone penetration increasing 4.9% to reach 40.2%. Smartphone data usage per customer reached 7.4 GB per month compared to 6.1 GB per month in the prior period.
EBITDA increased to $418m, up by 2.5% in reported currency and up by 14.2% in constant currency. EBITDA margins of 47.3% declined by 233 basis points as a result of rising fuel prices in several of our key markets. However, in Q2'25, EBITDA margin improved as compared to Q1'25.
Operating free cash flow was $262m, up by 0.8% in constant currency, due largely to EBITDA growth, partially offset by increased capex.
The differential in growth rates (between constant currency and reported currency) is primarily contributed by the devaluation in the Zambian kwacha, the Malawian kwacha, and the Tanzanian shilling, partially offset by the Kenyan shilling appreciation.
Francophone Africa - Mobile services 1
|
Description |
Unit of |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Summarised statement of operations |
|
|
|
|
|
|
|
|
|
|
Revenue |
$m |
636 |
605 |
5.2% |
5.3% |
329 |
306 |
7.4% |
7.1% |
|
Voice revenue 2 |
$m |
313 |
317 |
(1.1%) |
(1.0%) |
159 |
159 |
0.1% |
(0.3%) |
|
Data revenue |
$m |
260 |
221 |
17.9% |
18.1% |
138 |
114 |
21.2% |
20.9% |
|
Other revenue 3 |
$m |
63 |
67 |
(6.7%) |
(6.7%) |
32 |
33 |
(4.8%) |
(5.0%) |
|
EBITDA |
$m |
244 |
264 |
(7.8%) |
(7.7%) |
130 |
133 |
(2.9%) |
(3.3%) |
|
EBITDA margin |
% |
38.3% |
43.7% |
(538) bps |
(539) bps |
39.4% |
43.6% |
(418) bps |
(419) bps |
|
Depreciation and amortisation |
$m |
(115) |
(103) |
11.1% |
11.2% |
(60) |
(53) |
11.9% |
11.4% |
|
Operating profit |
$m |
101 |
138 |
(26.8%) |
(26.8%) |
55 |
68 |
(19.9%) |
(20.3%) |
|
Capex |
$m |
66 |
77 |
(13.8%) |
(13.8%) |
43 |
46 |
(6.2%) |
(6.2%) |
|
Operating free cash flow |
$m |
178 |
187 |
(5.2%) |
(5.1%) |
87 |
87 |
(0.9%) |
(1.7%) |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
Total customer base |
million |
33.6 |
30.9 |
9.0% |
|
33.6 |
30.9 |
9.0% |
|
|
Data customer base |
million |
10.9 |
9.9 |
10.6% |
|
10.9 |
9.9 |
10.6% |
|
|
Mobile services ARPU |
$ |
3.2 |
3.4 |
(4.7%) |
(4.6%) |
3.3 |
3.4 |
(2.1%) |
(2.4%) |
(1) The Francophone Africa business region includes Chad, Democratic Republic of the Congo, Gabon, Madagascar, Niger, Republic of the Congo, and Seychelles.
(2) Voice revenue includes inter-segment revenue of $2m in the half year ended 30 September 2023. Excluding inter-segment revenue, voice revenue was $315m in the half year ended 30 September 2023.
(3) Other revenue includes inter-segment revenue of $2m in the half year ended 30 September 2024 and $1m in the prior period. Excluding inter-segment revenue, other revenue was $61m in half year ended 30 September 2024 and $66m in the prior period.
Revenue grew by 5.2% in reported currency and by 5.3% in constant currency. Revenue growth remains impacted due to high inflation in key markets impacting consumer spend, though it has improved from 3.6% in Q1'25 to 7.1% in Q2'25 on constant currency basis.
Voice revenue declined by 1.0% in constant currency, as customer base growth of 9.0% was more than offset by a decline in voice ARPU. Voice ARPU was negatively impacted by a reduction in the interconnect rate by the regulator in Congo B and Niger coupled with increased competitive intensity in pricing in few markets. Customer base growth was supported by the expansion of both network coverage and distribution infrastructure.
Data revenue grew by 18.1% in constant currency, supported by customer base growth of 10.6%. Our continued 4G network rollout resulted in an increase in total data usage of 41.8% and per customer data usage increase of 22.8%. Data usage per customer increased to 5.1 GB per month (up from 4.2 GB in the prior period), with smartphone penetration increasing 5.4% to reach 40.8%. Smartphone data usage per customer reached 6.2 GB per month compared to 5.1 GB per month in the prior period.
EBITDA at $244m, declined by 7.8% and 7.7% in reported and constant currency, respectively. The EBITDA margin declined to 38.3%, a decline of 538 basis points, impacted by an increase in fixed frequency fees in a key market, rising energy costs combined with a slowdown in revenue growth in key markets. In Q2'25, EBITDA margins increased to 39.4% from 37.1% in the previous quarter.
Operating free cash flow was $178m, declined by 5.1% in constant currency, due to the decline in EBITDA, partially offset by lower capex.
Mobile services
|
Description |
Unit of measure |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Summarised statement of operations |
|
|
|
|
|
|
|
|
|
|
Revenue 1 |
$m |
2,013 |
2,303 |
(12.6%) |
18.4% |
1,026 |
1,080 |
(5.0%) |
19.3% |
|
Voice revenue |
$m |
960 |
1,169 |
(17.9%) |
9.4% |
484 |
548 |
(11.6%) |
9.3% |
|
Data revenue |
$m |
844 |
915 |
(7.7%) |
28.4% |
435 |
429 |
1.4% |
30.2% |
|
Other revenue |
$m |
209 |
219 |
(4.8%) |
25.6% |
107 |
103 |
3.6% |
27.9% |
|
EBITDA |
$m |
907 |
1,149 |
(21.1%) |
9.9% |
469 |
538 |
(12.9%) |
12.0% |
|
EBITDA margin |
% |
45.1% |
49.9% |
(484) bps |
(347) bps |
45.7% |
49.8% |
(414) bps |
(299) bps |
|
Depreciation and amortisation |
$m |
(365) |
(404) |
(9.6%) |
20.7% |
(185) |
(190) |
(2.9%) |
21.6% |
|
Operating profit |
$m |
494 |
678 |
(27.2%) |
6.8% |
254 |
315 |
(19.6%) |
8.3% |
|
Capex |
$m |
297 |
293 |
1.7% |
1.7% |
159 |
160 |
(0.9%) |
(0.9%) |
|
Operating free cash flow |
$m |
610 |
856 |
(28.8%) |
14.2% |
310 |
378 |
(18.0%) |
19.3% |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
Mobile voice |
|
|
|
|
|
|
|
|
|
|
Customer base |
million |
156.6 |
147.7 |
6.1% |
|
156.6 |
147.7 |
6.1% |
|
|
Voice ARPU |
$ |
1.0 |
1.4 |
(23.9%) |
1.4% |
1.0 |
1.3 |
(17.3%) |
2.2% |
|
Mobile data |
|
|
|
|
|
|
|
|
|
|
Data customer base |
million |
66.0 |
59.8 |
10.4% |
|
66.0 |
59.8 |
10.4% |
|
|
Data ARPU |
$ |
2.2 |
2.7 |
(18.4%) |
13.5% |
2.2 |
2.4 |
(8.6%) |
17.4% |
(1) Mobile service revenue after inter-segment eliminations was $2,009m in the half year ended 30 September 2024 and $2,300m in the prior period.
Overall revenue from mobile services declined by 12.6% in reported currency with growth of 18.4% in constant currency. In Q2'25, constant currency revenue growth accelerated to 19.3% from 17.4% in the prior quarter. The constant currency growth was evident across all regions and services.
Voice revenue grew by 9.4% in constant currency, was supported primarily by the continued growth in the customer base as we continue to invest in our network and enhance our distribution infrastructure. The voice ARPU growth of 1.4% was supported by an increase in voice usage per customer of 3.5%, reaching 295 minutes per customer per month, with total minutes on the network increasing by 11.6%.
Data revenue grew by 28.4% in constant currency, driven by both customer base growth of 10.4% and data ARPU growth of 13.5%. The customer base growth was recorded across all the regions supported by the expansion of our 4G network. 96.6% of our total sites are now on 4G, compared with 92.3% in the prior period. 5G is operational across five countries, with 1,221 sites deployed. Data usage per customer increased to 6.6 GB per customer per month (from 5.1 GB in the prior period), with smartphone penetration increasing 5.3% to reach 42.9%. Smartphone data usage per customer reached 8.5 GB per month compared to 6.9 GB per month in the prior period. Data revenue contributed to 41.9% of total mobile services revenue, up from 39.7% in the prior period.
EBITDA was $907m, down 21.1% in reported currency, and up by 9.9% in constant currency. In Q2'25, EBITDA margins increased to 45.7% from 44.4% in the prior quarter on the back of improvements across all regions. The EBITDA margin declined by 484 basis points YoY to 45.1%, a decline of 347 basis points in constant currency, due largely to increase in fuel prices across key markets.
Operating free cash flow was $610m, up by 14.2% in constant currency, due to the increased constant currency EBITDA, partially offset by higher capex.
Mobile money
|
Description |
Unit of measure |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Summarised statement of operations |
|
|
|
|
|
|
|
|
|
|
Revenue 1 |
$m |
466 |
416 |
11.9% |
28.8% |
244 |
215 |
13.5% |
29.1% |
|
Nigeria |
$m |
2 |
1 |
- |
- |
1 |
0 |
- |
- |
|
East Africa |
$m |
349 |
319 |
9.2% |
31.4% |
182 |
165 |
10.5% |
31.1% |
|
Francophone Africa |
$m |
115 |
96 |
20.2% |
20.2% |
61 |
50 |
22.4% |
21.9% |
|
EBITDA |
$m |
247 |
214 |
15.4% |
33.0% |
128 |
111 |
15.6% |
32.0% |
|
EBITDA margin |
% |
53.0% |
51.4% |
162 bps |
167 bps |
52.6% |
51.6% |
93 bps |
116 bps |
|
Depreciation and amortisation |
$m |
(10) |
(9) |
6.9% |
29.3% |
(5) |
(5) |
13.5% |
34.6% |
|
Operating profit |
$m |
230 |
198 |
16.1% |
33.7% |
119 |
103 |
15.3% |
32.1% |
|
Capex |
$m |
10 |
10 |
(3.2%) |
(3.2%) |
6 |
7 |
(13.7%) |
(13.7%) |
|
Operating free cash flow |
$m |
237 |
204 |
16.3% |
35.1% |
122 |
104 |
17.5% |
35.5% |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
Mobile money customer base |
million |
41.5 |
36.5 |
13.4% |
|
41.5 |
36.5 |
13.4% |
|
|
Transaction value |
$bn |
63.8 |
55.7 |
14.6% |
30.1% |
33.8 |
28.9 |
17.0% |
31.5% |
|
Mobile money ARPU |
$ |
2.0 |
2.0 |
(3.7%) |
10.9% |
2.0 |
2.0 |
(0.7%) |
12.9% |
(1) Mobile money service revenue post inter-segment eliminations with mobile services was $361m in the half year ended 30 September 2024 and $323m in the prior year.
Mobile money revenue grew by 11.9% in reported currency, with constant currency growth of 28.8%. The constant currency mobile money revenue growth was driven by revenue growth in both East Africa and Francophone Africa of 31.4% and 20.2%, respectively. In Nigeria, we continue to focus on customer acquisitions with 1.4 million of active customers registered for mobile money services at the end of September 2024. Additionally, we added almost 117,000 agents during the year reaching over 231,000 agents as of 30 September 2024.
The constant currency revenue growth of 28.8% was driven by both our customer base growth of 13.4% and mobile money ARPU growth of 10.9%. The expansion of our distribution network, particularly our exclusive channels of Airtel Money branches and kiosks, supported customer base growth of 13.4%. The mobile money ARPU growth of 10.9% was driven by transaction value per customer growth of 12.1% in constant currency, to $268 per customer per month.
Annualised transaction value amounted to $128bn in reported currency, with mobile money revenue contributing 19.6% of total Group revenue during the half year ended 30 September 2024.
EBITDA was $247m, up by 15.4% and 33.0% in reported and constant currency, respectively. The EBITDA margin reached 53.0%, an improvement of 167 basis points in constant currency and 162 basis points in reported currency, driven by continued operating leverage.
The differential in growth rates (between constant currency and reported currency) is primarily as the result of devaluation in the Zambian kwacha, the Malawi kwacha, and the Tanzanian shilling.
Regional performance
Nigeria
|
Description |
Unit of measure |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Revenue |
$m |
490 |
879 |
(44.2%) |
35.8% |
234 |
350 |
(33.1%) |
38.2% |
|
Voice revenue |
$m |
209 |
414 |
(49.6%) |
23.0% |
97 |
161 |
(39.7%) |
24.5% |
|
Data revenue |
$m |
229 |
385 |
(40.5%) |
44.4% |
112 |
157 |
(28.6%) |
47.3% |
|
Mobile money revenue |
$m |
2 |
1 |
- |
- |
1 |
0 |
- |
- |
|
Other revenue |
$m |
51 |
79 |
(35.1%) |
57.9% |
25 |
32 |
(23.1%) |
58.8% |
|
EBITDA |
$m |
237 |
470 |
(49.5%) |
22.7% |
115 |
189 |
(39.2%) |
25.7% |
|
EBITDA margin |
% |
48.4% |
53.5% |
(508) bps |
(517) bps |
49.1% |
54.0% |
(489) bps |
(486) bps |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
ARPU |
$ |
1.6 |
3.0 |
(45.8%) |
32.0% |
1.6 |
2.4 |
(33.9%) |
36.5% |
East Africa
|
Description |
Unit of measure |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Revenue |
$m |
1,159 |
1,075 |
7.8% |
21.7% |
605 |
556 |
8.8% |
21.2% |
|
Voice revenue |
$m |
439 |
441 |
(0.3%) |
10.9% |
229 |
229 |
(0.1%) |
9.5% |
|
Data revenue |
$m |
355 |
309 |
14.7% |
26.1% |
185 |
158 |
16.9% |
26.4% |
|
Mobile money revenue |
$m |
349 |
320 |
9.2% |
31.4% |
182 |
165 |
10.5% |
31.1% |
|
Other revenue |
$m |
87 |
69 |
25.4% |
39.1% |
45 |
36 |
27.5% |
39.8% |
|
EBITDA |
$m |
609 |
580 |
4.9% |
19.9% |
320 |
301 |
6.1% |
19.6% |
|
EBITDA margin |
% |
52.5% |
53.9% |
(141) bps |
(79) bps |
52.8% |
54.2% |
(135) bps |
(70) bps |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
ARPU |
$ |
2.7 |
2.7 |
(2.4%) |
10.2% |
2.8 |
2.8 |
(0.8%) |
10.4% |
Francophone Africa
|
Description |
Unit of measure |
Half year ended |
Quarter ended |
||||||
|
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
Sep-24 |
Sep-23 |
Reported currency |
Constant currency |
||
|
Revenue |
$m |
716 |
670 |
7.0% |
7.1% |
371 |
340 |
9.4% |
9.0% |
|
Voice revenue |
$m |
313 |
317 |
(1.1%) |
(1.0%) |
159 |
159 |
0.1% |
(0.3%) |
|
Data revenue |
$m |
260 |
221 |
17.9% |
18.1% |
138 |
114 |
21.2% |
20.9% |
|
Mobile money revenue |
$m |
115 |
96 |
20.2% |
20.2% |
61 |
50 |
22.4% |
21.9% |
|
Other revenue |
$m |
62 |
66 |
(7.2%) |
(7.1%) |
31 |
33 |
(5.1%) |
(5.3%) |
|
EBITDA |
$m |
307 |
316 |
(2.9%) |
(2.8%) |
163 |
161 |
1.2% |
0.8% |
|
EBITDA margin |
% |
42.8% |
47.2% |
(437) bps |
(438) bps |
43.8% |
47.3% |
(354) bps |
(355) bps |
|
Operating KPIs |
|
|
|
|
|
|
|
|
|
|
ARPU |
$ |
3.6 |
3.7 |
(3.1%) |
(3.0%) |
3.7 |
3.7 |
(0.3%) |
(0.7%) |
Consolidated performance
|
Description |
UoM |
Half year ended September 2024 |
Half year ended September 2023 |
||||||||
|
Mobile services |
Mobile money |
Unallocated |
Eliminations |
Total |
Mobile services |
Mobile money |
Unallocated |
Eliminations |
Total |
||
|
Revenue |
$m |
2,013 |
466 |
- |
(109) |
2,370 |
2,303 |
416 |
- |
(96) |
2,623 |
|
Voice revenue |
$m |
960 |
|
- |
- |
960 |
1,169 |
|
- |
- |
1,169 |
|
Data revenue |
$m |
844 |
|
- |
- |
844 |
915 |
|
- |
- |
915 |
|
Other revenue |
$m |
209 |
|
- |
(4) |
205 |
219 |
|
- |
(3) |
216 |
|
EBITDA |
$m |
907 |
247 |
(67) |
- |
1,087 |
1,149 |
214 |
(61) |
- |
1,302 |
|
EBITDA margin |
% |
45.1% |
53.0% |
|
|
45.8% |
49.9% |
51.4% |
|
|
49.6% |
|
Depreciation and amortisation |
$m |
(365) |
(10) |
(6) |
- |
(381) |
(404) |
(9) |
(4) |
- |
(417) |
|
Operating profit |
$m |
494 |
230 |
(18) |
- |
706 |
678 |
198 |
9 |
- |
885 |
Related party transactions
Related party transactions are disclosed in note 16 to the condensed set of financial statements.
There have been no material changes in the related party transactions described in the last annual report.
Risk factors
The risk factors summarised below relate to the Group's business and industry in which it operates. Additional risks and uncertainties relating to the Group that are currently unknown to the Group, or those the Group currently deems immaterial, may, individually or cumulatively, also have a material adverse impact on the Group's business, results of operations and financial position. The Group's principal and emerging risks and risk management process are described in pages 72-79 of our 2024 Annual Report and Accounts. Based on the Group's assessment, there has been no changes to the group's principal risks in the period.
Summary of principal risks
The Group continually monitors its external and internal environment to identify risks which have the ability to impact its operations, financial performance or the achievement of its objectives.
1. We operate in a competitive environment with the potential for aggressive competition by existing players, or the entry of new players, which could both put a downward pressure on prices, adversely affecting our revenue and profitability.
2. Failure to innovate through simplifying the customer experience, developing adequate digital touchpoints in line with changing customer needs and competitive landscape could lead to loss of customers and market share.
3. Global geopolitical and regional tensions have the potential to impact our business directly and indirectly due to the interconnectedness of the global supply chain. Relatedly, adverse macroeconomic conditions such as rising inflation and increased cost of living not only puts pressure on the disposable income of our customers but also increases the cost of inputs for our business negatively impacting sales and profitability.
4. Cybersecurity threats through internal or external sabotage or system vulnerabilities could potentially result in customer data breaches and/or service downtimes.
5. Adverse changes in our external business environment and macro-economic conditions such as supply chain disruptions, increase in global commodity prices and inflationary pressures could lead to a significant increase in our operating cost structure while also negatively impacting the disposable income of consumers. These adverse economic conditions therefore not only put pressure on our profitability but also on customer usage for our services.
6. Shortages of skilled telecommunications professionals in some markets and the inability to identify and develop successors for key leadership positions could both lead to disruptions in the execution of our corporate strategy.
7. Our internal control environment is subject to the risk that controls may become inadequate due to changes in internal or external conditions, new accounting requirements, delays, or inaccuracies in reporting.
8. Our ability to provide quality of service to our customers and meet quality of service (QoS) requirements depends on the robustness and resilience of our technology stack and ecosystem encompassing hardware, software, products, services, and applications and our ability to respond appropriately to any disruptions. However, telecommunications networks are subject to the risks of technical failures, aging infrastructure, human error, wilful acts of destruction or natural disasters.
9. We operate in a diverse and dynamic legal, tax and regulatory environment. Adverse changes in the political, macro-economic and policy environment could have a negative impact on our ability to achieve our strategy. While the group makes every effort to comply with its legal and regulatory obligations in all its operating jurisdictions in line with the group's risk appetite, we are however continually faced with an uncertain and constantly evolving legal, regulatory, and policy environment in some of the markets where we operate.
10. Our multinational footprint means we are constantly exposed to the risk of adverse currency fluctuations and the macroeconomic conditions in the markets where we operate. We derive revenue and incur costs in local currencies where we operate, but we also incur costs in foreign currencies, mainly from buying equipment and services from manufacturers and technology service providers. That means adverse movements in exchange rates between the currencies in our OpCos and the US dollar could have a negative effect on our liquidity and financial condition. In some markets, we face instances of limited supply of foreign currency within the local monetary system. This not only constrains our ability to fully benefit at Group level from strong cash generation by those OpCos but also impacts our ability to make timely foreign currency payments to our international suppliers.
Given the severity of this risk, specifically in some of our OpCos, the Group management continuously monitors the potential impact of this risk of exchange rate fluctuations based on the following methodology:
a) Comparing the average devaluation of each currency in the markets in which the Group operates against US dollar on 3-year and 5-year historic basis and onshore forward exchange rates over a 1-year period.
b) If either of the above devaluation is higher than 5% per annum, management selects the highest of these exchange rates.
c) Management then uses this exchange rate to monitor the potential impact of using such rate on the Group's income statement so that the Group can actively monitor and assess the impact on the Group's financials due to exchange rate fluctuations.
Additionally, for our Nigerian operations, management uses different sensitivity analysis for scenario planning purposes which includes the recent impact of the naira devaluation.
With respect to currency devaluation sensitivity going forward, on a 12-month basis assuming that the USD appreciation occurs at the beginning of the period, a further 1% USD appreciation across all currencies in our OpCos would have a negative impact of $41m - $43m on revenues, $19m - $20m on EBITDA and $27m - $29m on foreign exchange loss (excluding derivatives). Our largest exposure is to the Nigerian naira, for which on a similar basis, a further 1% USD appreciation would have a negative impact of $9m - $10m on revenues, $4m - $5m on EBITDA and $15m - $16m on foreign exchange loss (excluding derivatives).
This does not represent any guidance and is being used solely to illustrate the potential impact of further currency devaluation on the Group for the purpose of exchange rate risk management. The accounting under IFRS is based on exchange rates in line with the requirements of IAS 21 'The Effect of Changes in Foreign Exchange' and does not factor in the devaluation mentioned above.
Based on above-mentioned specific methodology for the identified OpCos, management evaluates specific mitigation actions based on available mechanisms in each of the geographies. For further details on such mitigation action, refer to the risk section of the Annual Report and Accounts 2023/24.
Going concern
As stated in note 3.1 to the condensed financial statements, the directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.
Forward looking statements
This document contains certain forward-looking statements regarding our intentions, beliefs or current expectations concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the Group operates.
These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions.
It is believed that the expectations reflected in this document are reasonable, but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated.
All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual future financial condition, performance and results to differ materially from the plans, goals, expectations and results expressed in the forward-looking statements and other financial and/or statistical data within this communication.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are uncertainties related to the following: the impact of competition from illicit trade; the impact of adverse domestic or international legislation and regulation; changes in domestic or international tax laws and rates; adverse litigation and dispute outcomes and the effect of such outcomes on Airtel Africa's financial condition; changes or differences in domestic or international economic or political conditions; the ability to obtain price increases and the impact of price increases on consumer affordability thresholds; adverse decisions by domestic or international regulatory bodies; the impact of market size reduction and consumer down-trading; translational and transactional foreign exchange rate exposure; the impact of serious injury, illness or death in the workplace; the ability to maintain credit ratings; the ability to develop, produce or market new alternative products and to do so profitably; the ability to effectively implement strategic initiatives and actions taken to increase sales growth; the ability to enhance cash generation and pay dividends and changes in the market position, businesses, financial condition, results of operations or prospects of Airtel Africa.
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements contained in this document reflect the knowledge and information available to Airtel Africa at the date of preparation of this document and Airtel Africa undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.
No statement in this communication is intended to be, nor should be construed as, a profit forecast or a profit estimate and no statement in this communication should be interpreted to mean that earnings per share of Airtel Africa plc for the current or any future financial periods would necessarily match, exceed or be lower than the historical published earnings per share of Airtel Africa plc.
Financial data included in this document are presented in US dollars rounded to the nearest million. Therefore, discrepancies in the tables between totals and the sums of the amounts listed may occur due to such rounding. The percentages included in the tables throughout the document are based on numbers calculated to the nearest $1,000 and therefore minor rounding differences may result in the tables. Growth metrics are provided on a constant currency basis unless otherwise stated. The Group has presented certain financial information on a constant currency basis. This is calculated by translating the results for the current financial year and prior financial year at a fixed 'constant currency' exchange rate, which is done to measure the organic performance of the Group. Growth rates for our reporting regions and service segments are provided in constant currency as this better represents the performance of the business.
Airtel Africa plc
Results for the half year ended 30 September 2024
Consolidated Financial Statements
Interim Condensed Consolidated Statement of Comprehensive Income
(All amounts are in US$ millions unless stated otherwise)
|
|
Notes |
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
|
Income |
|
|
|
|
Revenue |
5 |
2,370 |
2,623 |
|
Other income |
|
12 |
16 |
|
|
|
2,382 |
2,639 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Network operating expenses |
|
463 |
491 |
|
Access charges |
|
122 |
179 |
|
License fee and spectrum usage charges |
|
127 |
124 |
|
Employee benefits expense |
|
148 |
152 |
|
Sales and marketing expenses |
|
311 |
289 |
|
Impairment loss on financial assets |
|
5 |
4 |
|
Other operating expenses |
|
119 |
98 |
|
Depreciation and amortisation |
|
381 |
417 |
|
|
|
1,676 |
1,754 |
|
|
|
|
|
|
Operating profit |
|
706 |
885 |
|
|
|
|
|
|
Finance costs |
|
|
|
|
- Derivative and foreign exchange losses |
|
|
|
|
Nigerian naira |
|
231 |
557 |
|
Other currencies |
|
29 |
97 |
|
- Other finance costs |
|
280 |
236 |
|
Finance income |
|
(12) |
(17) |
|
Share of profit of associate and joint venture accounted for using equity method |
|
(0) |
(0) |
|
Profit before tax |
|
178 |
12 |
|
|
|
|
|
|
Income tax expense |
6 |
99 |
25 |
|
Profit/(loss) for the period |
|
79 |
(13) |
|
|
|
|
|
|
Profit before tax (as presented above) |
|
178 |
12 |
|
Add: Exceptional items |
7 |
231 |
471 |
|
Underlying profit before tax |
|
409 |
483 |
|
|
|
|
|
|
Profit/(loss) after tax (as presented above) |
|
79 |
(13) |
|
Add: Exceptional items |
7 |
151 |
317 |
|
Underlying profit after tax |
|
230 |
304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
|
|
|
|
|
|
Profit/(loss) for the period (continued from previous page) |
|
79 |
(13) |
|
Other comprehensive income ('OCI') |
|
|
|
|
Items to be reclassified subsequently to profit or loss: |
|
|
|
|
Loss due to foreign currency translation differences |
|
(3) |
(677) |
|
Gain on debt instruments at fair value through other comprehensive income |
|
0
|
-
|
|
Share of OCI of associate and joint venture accounted for using equity method |
|
0
|
(0)
|
|
Loss on cash flow hedges |
|
(0) |
- |
|
Tax on above |
|
2 |
4 |
|
|
|
(1) |
(673) |
|
Items not to be reclassified subsequently to profit or loss: |
|
|
|
|
Re-measurement loss on defined benefit plans |
|
(1) |
(0) |
|
Tax on above |
|
0 |
0 |
|
|
|
(1) |
(0) |
|
|
|
|
|
|
Other comprehensive loss for the period |
|
(2) |
(673) |
|
|
|
|
|
|
Total comprehensive income/ (loss) for the period |
|
77 |
(686) |
|
|
|
|
|
|
Profit/ (loss) for the period attributable to: |
|
79 |
(13) |
|
|
|
|
|
|
Owners of the company |
|
31 |
(55) |
|
Non-controlling interests |
|
48 |
42 |
|
|
|
|
|
|
Other comprehensive loss for the period attributable to: |
|
(2) |
(673) |
|
|
|
|
|
|
Owners of the company |
|
2 |
(659) |
|
Non-controlling interests |
|
(4) |
(14) |
|
|
|
|
|
|
Total comprehensive income/(loss) for the period attributable to: |
|
77 |
(686) |
|
|
|
|
|
|
Owners of the company |
|
33 |
(714) |
|
Non-controlling interests |
|
44 |
28 |
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
Basic |
8 |
0.8 cents |
(1.5 cents) |
|
Diluted |
8 |
0.8 cents |
(1.5 cents) |
|
Interim Condensed Consolidated Statement of Financial Position (All amounts are in US$ millions unless stated otherwise) |
|
|
Notes |
As of |
|
|
|
30 September 2024 |
31 March 2024 |
|
|
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
9 |
1,867 |
1,827 |
|
Capital work-in-progress |
9 |
204 |
232 |
|
Right of use assets |
|
2,713 |
1,483 |
|
Goodwill |
10 |
2,531 |
2,569 |
|
Other intangible assets |
|
739 |
725 |
|
Intangible assets under development |
|
10 |
4 |
|
Investments accounted for using equity method |
|
5 |
5 |
|
Financial assets |
|
|
|
|
- Investments |
|
0 |
0 |
|
- Derivative instruments |
|
0 |
0 |
|
- Others |
|
9 |
30 |
|
Income tax assets (net) |
|
8 |
5 |
|
Deferred tax assets (net) |
|
551 |
543 |
|
Other non-current assets |
|
163 |
146 |
|
|
|
8,800 |
7,569 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
28 |
26 |
|
Financial assets |
|
|
|
|
- Investments |
|
1 |
2 |
|
- Derivative instruments |
|
2 |
10 |
|
- Trade receivables |
|
192 |
184 |
|
- Cash and cash equivalents |
11 |
406 |
620 |
|
- Other bank balances |
11 |
40 |
353 |
|
- Balance held under mobile money trust |
|
830 |
737 |
|
- Others |
|
76 |
106 |
|
Other current assets |
|
274 |
254 |
|
|
|
1,849 |
2,292 |
|
Total assets |
|
10,649 |
9,861 |
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
As of |
|
|
|
|
30 September 2024 |
31 March 2024 |
|
Liabilities Current liabilities |
|
|
|
|
Financial liabilities |
|
|
|
|
- Borrowings |
13 |
1,096 |
1,426 |
|
- Lease liabilities - Put option liability |
16 |
231 539 |
357 - |
|
- Derivative instruments |
|
68 |
144 |
|
- Trade payables |
|
425 |
422 |
|
- Mobile money wallet balance |
|
808 |
722 |
|
- Others |
|
333 |
440 |
|
Provisions |
|
71 |
78 |
|
Deferred revenue |
|
123 |
123 |
|
Current tax liabilities (net) |
|
58 |
119 |
|
Other current liabilities |
|
205 |
215 |
|
|
|
3,957 |
4,046 |
|
|
|
|
|
|
Net current liabilities |
|
(2,108) |
(1,754) |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Financial liabilities |
|
|
|
|
- Borrowings |
13 |
1,123 |
947 |
|
- Lease liabilities |
|
3,133 |
1,732 |
|
- Put option liability |
16 |
- |
552 |
|
- Derivative instruments |
|
0 |
33 |
|
- Others |
|
158 |
146 |
|
Provisions |
|
24 |
22 |
|
Deferred tax liabilities (net) |
|
77 |
67 |
|
Other non-current liabilities |
|
7 |
16 |
|
|
|
4,522 |
3,515 |
|
|
|
|
|
|
Total liabilities |
|
8,479 |
7,561 |
|
|
|
|
|
|
Net Assets |
|
2,170 |
2,300 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
12 |
1,849 |
1,875 |
|
Reserves and surplus |
|
179 |
285 |
|
Equity attributable to owners of the company |
|
2,028 |
2,160 |
|
Non-controlling interests ('NCI') |
|
142 |
140 |
|
Total equity |
|
2,170 |
2,300 |
|
The accompanying notes form an integral part of these interim condensed consolidated financial statements.
For and on behalf of the Board of Airtel Africa plc
Sunil Taldar Chief Executive Officer 24 October 2024 |
|
Interim Condensed Consolidated Statement of Changes in Equity (All amounts are in US$ millions unless stated otherwise) |
|
||||||||||||
|
|
|
Equity attributable to owners of the company |
|
|
|||||||||
|
|
Share Capital |
Reserves and Surplus |
Equity attributable to owners of the company |
|
|
||||||||
|
|
No. of shares |
Amount |
Retained earnings |
Transactions with NCI reserve |
Other components of equity |
Total |
Non-controlling interests (NCI) |
Total |
|||||
|
As of 1 April 2023 |
6,839,896,081 |
3,420 |
3,902 |
(929) |
(2,758) |
215 |
3,635 |
173 |
3,808 |
|
|||
|
(Loss)/profit for the period |
- |
- |
(55) |
- |
- |
(55) |
(55) |
42 |
(13) |
|
|||
|
Other comprehensive loss |
- |
- |
(0) |
- |
(659) |
(659) |
(659) |
(14) |
(673) |
|
|||
|
Total comprehensive income/(loss) |
- |
- |
(55) |
- |
(659) |
(714) |
(714) |
28 |
(686) |
|
|||
|
Transaction with owners of equity |
|
|
|
|
|
|
|
|
|
|
|||
|
Employee share-based payment reserve |
- |
- |
(0) |
- |
2 |
2 |
2 |
- |
2 |
|
|||
|
Purchase of own shares (net) |
- |
- |
- |
- |
(1) |
(1) |
(1) |
- |
(1) |
|
|||
|
Cancellation of deferred shares |
(3,081,744,577) |
(1,541) |
1,541 |
- |
- |
1,541 |
- |
- |
- |
||||
|
Transactions with NCI |
- |
- |
- |
10 |
- |
10 |
10 |
2 |
12 |
|
|||
|
Dividend to owners of the company |
- |
- |
(123) |
- |
- |
(123) |
(123) |
- |
(123) |
|
|||
|
Dividend (including tax) to NCI |
- |
- |
- |
- |
- |
- |
- |
(34) |
(34) |
|
|||
|
As of 30 September 2023 |
3,758,151,504 |
1,879 |
5,265 |
(919) |
(3,416) |
930 |
2,809 |
169 |
2,978 |
|
|||
|
(Loss)/Profit for the period |
- |
- |
(110) |
- |
- |
(110) |
(110) |
34 |
(76) |
|
|||
|
Other comprehensive loss |
- |
- |
0 |
- |
(482) |
(482) |
(482) |
(18) |
(500) |
|
|||
|
Total comprehensive income/(loss) |
- |
- |
(110) |
- |
(482) |
(592) |
(592) |
16 |
(576) |
|
|||
|
Transaction with owners of equity |
|
|
|
|
|
|
|
|
|
|
|||
|
Employee share-based payment reserve |
- |
- |
(1) |
- |
- |
(1) |
(1) |
- |
(1) |
|
|||
|
Purchase of own shares (net) |
- |
- |
- |
- |
2 |
2 |
2 |
- |
2 |
|
|||
|
Ordinary shares buy back programme |
(7,389,855) |
(4) |
(9) |
- |
(37) |
(46) |
(50) |
- |
(50) |
|
|||
|
Transactions with NCI |
- |
- |
- |
81 |
- |
81 |
81 |
(14) |
67 |
|
|||
|
Dividend to owners of the company |
- |
- |
(89) |
- |
- |
(89) |
(89) |
- |
(89) |
|
|||
|
Dividend (including tax) to NCI |
- |
- |
- |
- |
- |
- |
- |
(31) |
(31) |
|
|||
|
As of 31 March 2024 |
3,750,761,649 |
1,875 |
5,056 |
(838) |
(3,933) |
285 |
2,160 |
140 |
2,300 |
|
|||
|
Profit for the period |
- |
- |
31 |
- |
- |
31 |
31 |
48 |
79 |
|
|||
|
Other Comprehensive income/(loss) |
- |
- |
(1) |
- |
3 |
2 |
2 |
(4) |
(2) |
|
|||
|
Total comprehensive income |
- |
- |
30 |
- |
3 |
33 |
33 |
44 |
77 |
|
|||
|
Transactions with owners of equity |
|
|
|
|
|
|
|
|
|
|
|||
|
Employee share-based payment reserve |
- |
- |
(3) |
- |
(2) |
(5) |
(5) |
- |
(5) |
|
|||
|
Purchase of own shares (net) |
- |
- |
- |
- |
6 |
6 |
6 |
- |
6 |
|
|||
|
Ordinary shares buy back programme |
(53,159,199) |
(26) |
(79) |
- |
55 |
(24) |
(50) |
- |
(50) |
|
|||
|
Transactions with NCI(1) |
- |
- |
- |
17 |
- |
17 |
17 |
0 |
17 |
|
|||
|
Dividend to owners of the company |
- |
- |
(133) |
- |
- |
(133) |
(133) |
- |
(133) |
|
|||
|
Dividend (including tax) to NCI |
- |
- |
- |
- |
- |
- |
- |
(42) |
(42) |
|
|||
|
As of 30 September 2024 |
3,697,602,450 |
1,849 |
4,871 |
(821) |
(3,871) |
179 |
2,028 |
142 |
2,170 |
|
|||
(1) Transaction with NCI reserve increased mainly due to reversal of put option liability by $15m for dividend distribution to put option NCI holders. Any dividend paid to the put option NCI holders is adjustable against the put option liability based on the put option arrangement.
|
|
|
|||
|
Interim Condensed Consolidated Statement of Cash Flows (All amounts are in US$ millions unless stated otherwise)
|
For the six months ended |
|||
|
|
30 September 2024 |
30 September 2023 |
||
|
Cash flows from operating activities |
|
|
||
|
Profit before tax |
178 |
12 |
||
|
Adjustments for - |
|
|
||
|
Depreciation and amortization |
381 |
417 |
||
|
Finance income |
(12) |
(17) |
||
|
Finance costs |
|
|
||
|
- Derivative and foreign exchange losses |
|
|
||
|
Nigerian naira |
231 |
557 |
||
|
Other currencies |
29 |
97 |
||
|
- Other finance costs |
280 |
236 |
||
|
Loss on sale of property, plant and equipment, net |
- |
0 |
||
|
Share of profit of associate and joint venture accounted for using equity method |
(0) |
(0) |
||
|
Other non-cash adjustments(1) |
7 |
(1) |
||
|
Operating cash flow before changes in working capital |
1,094 |
1,301 |
||
|
Changes in working capital |
|
|
||
|
Increase in trade receivables |
(16) |
(38) |
||
|
Increase in inventories |
(6) |
(7) |
||
|
Increase in trade payables |
17 |
8 |
||
|
Increase in mobile money wallet balance |
89 |
139 |
||
|
Decrease in provisions |
(6) |
(18) |
||
|
Increase in deferred revenue |
4 |
10 |
||
|
Increase in other financial and non-financial liabilities |
3 |
24 |
||
|
Increase in other financial and non-financial assets |
(0) |
(71) |
||
|
Net cash generated from operations before tax |
1,179 |
1,348 |
||
|
Income taxes paid |
(200) |
(227) |
||
|
|
|
|
||
|
Net cash generated from operating activities (a) |
979 |
1,121 |
||
|
|
|
|
||
|
Cash flows from investing activities |
|
|
||
|
Purchase of property, plant and equipment and capital work-in-progress |
(412) |
(387) |
||
|
Purchase of intangible assets and intangible assets under development |
(100) |
(137) |
||
|
Maturity of deposits with bank |
360 |
340 |
||
|
Investment in deposits with bank |
(46) |
(581) |
||
|
Sell/(Purchase) of other short term investment |
1 |
(1) |
||
|
Interest received |
20 |
15 |
||
|
Net cash used in investing activities (b) |
(177) |
(751) |
||
|
|
|
|
||
|
Cash flows from financing activities |
|
|
||
|
Purchase of shares under buy-back programme |
(79) |
- |
||
|
Purchase of own shares by ESOP trust (net) |
(2) |
(2) |
||
|
Proceeds from sale of shares to NCI |
2 |
- |
||
|
Proceeds from borrowings |
770 |
384 |
||
|
Repayment of borrowings |
(917) |
(249) |
||
|
Repayment of lease liabilities |
(130) |
(165) |
||
|
Dividend paid to non-controlling interests |
(51) |
(43) |
||
|
Dividend paid to owners of the company |
(133) |
(123) |
||
|
Payment of deferred spectrum liability |
(1) |
(3) |
||
|
Interest on borrowings, lease liabilities and other liabilities |
(296) |
(211) |
||
|
Outflow on maturity of derivatives (net) |
(116) |
(0) |
||
|
Net cash used in financing activities (c) |
(953) |
(412) |
||
|
|
|
|
||
|
Decrease in cash and cash equivalents during the period (a+b+c) |
(151) |
(42) |
||
|
Currency translation differences relating to cash and cash equivalents |
15 |
(64) |
||
|
|
|
|
||
|
Cash and cash equivalent as at beginning of the period |
900 |
841 |
||
|
Cash and cash equivalents as at end of the period (refer to Note 11) (2) |
764 |
735 |
||
(1) For the six months ended 30 September 2024 and 30 September 2023, this mainly includes movement in impairment of trade receivables and other provisions.
(2) Includes balances held under mobile money trust of $830m (September 2023: $720m) on behalf of mobile money customers which are not available for use by the Group.
Notes to Interim Condensed Consolidated Financial Statements
(All amounts are in US$ millions unless stated otherwise)
1. Corporate information
Airtel Africa plc ('the company') is a public company limited by shares incorporated and domiciled in the United Kingdom (UK) under the Companies Act 2006 and is registered in England and Wales (registration number 11462215). The registered address of the company is First Floor, 53/54 Grosvenor Street, London, W1K 3HU, United Kingdom. The company is listed both on the London Stock Exchange (LSE) and Nigerian Stock Exchange (NGX). The company is a subsidiary of Airtel Africa Mauritius Limited ('the parent'), a company registered in Mauritius. The registered address of the parent is c/o IQ EQ Corporate Services (Mauritius) Ltd., 33, Edith Cavell Street, Port Louis, 11324, Mauritius.
The company, together with its subsidiary undertakings (hereinafter referred to as 'the Group') has operations in Africa. The principal activities of the Group, its associate and its joint venture primarily consist of the provision of telecommunications and mobile money services.
2. Basis of preparation
These interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the International Accounting Standards Board (IASB) and approved for use in the UK by the UK Accounting Standards Endorsement Board (UKEB). Accordingly, the interim financial statements do not include all the information required for a complete set of financial statements and should be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 March 2024. Further, selected explanatory notes have been included to explain events and transactions that are significant for the understanding of the changes in the Group's financial position and performance since the latest annual consolidated financial statements.
These interim financial statements for the six months ended 30 September 2024 do not constitute statutory accounts as defined in section 434 of the UK Companies Act 2006 and are unaudited. The information relating to the year ended 31 March 2024 is an extract from the Group's published annual report for that year, which has been delivered to the Companies House on 12 July 2024, and on which the auditors' report was unqualified and did not contain any emphasis of matter or statements under section 498(2) or 498(3) of the UK Companies Act 2006.
These interim financial statements apply the same accounting policies, presentation and methods of calculation as those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 March 2024. Further, there have been no changes in critical accounting estimates, assumptions and judgements. These interim financial statements of the Group for the six months ended 30 September 2024 were authorised by the Board of Directors on 24 October 2024.
3. Basis of measurement
The Interim financial statements have been prepared on the historical cost basis except for financial instruments held at fair value and are presented in United States Dollars (USD), with all values stated in US$ million and rounded to the nearest million except when otherwise indicated. Further, amounts which are less than half a million are appearing as '0'.
3.1 Going concern
These interim consolidated financial statements have been prepared on a going concern basis. In making this going concern assessment, the Group has considered cash flow projections to December 2025 (going concern assessment period) under both a base case and reasonable worst-case scenarios including a reverse stress test.
This assessment takes into consideration its principal risks and uncertainties including a reduction in revenue and EBITDA and a devaluation of the various currencies in the countries in which the Group operates including the Nigerian naira. This assessment also takes into consideration the repayment of all liabilities that fall due over the going concern period including the repayment of borrowings and other liabilities. As part of this evaluation, the Group has considered available ways to mitigate these risks and uncertainties and has also considered committed undrawn facilities of $313m expiring beyond the going concern assessment period, which will fulfil the Group's cash flow requirement under both the base and reasonable worst-case scenarios.
Having considered all the above-mentioned factors impacting the Group's businesses, the impact of downside sensitivities, and the mitigating actions available to the group including a reduction and deferral of capital expenditure, the directors are satisfied that the Group has adequate resources to continue its operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.
4. Significant transactions/new developments
a) The directors recommended on 8 May 2024 and shareholders approved on 03 July 2024, a final dividend of 3.57 cents per ordinary shares for the year ended 31 March 2024, which was paid on 26 July 2024 to the holders of ordinary shares on the register of members at the close of business on 21 June 2024.
b) On 20 May 2024, Bharti Airtel International (Netherlands) B.V., subsidiary of the Company repaid in full the 5.35% Guaranteed Senior Notes amounting to $550m on its maturity date. The bond repayment was made exclusively out of the cash reserves of the group.
c) During the half year ended September 2024, the Nigerian naira has devalued against the US Dollar by approximately 28% (USD appreciation of 22%) where the exchange rate moved to 1,669 naira per USD at the close of the current half year as against the rate of 1,303 naira per USD at the close of March 2024. This resulted in a material impact on the Group's financial results arising from the translation of monetary items at closing exchange rates in addition to the impact on the valuation of derivatives.
In line with the Group's policy on exceptional items and alternative performance measures, the impact of the devaluation pertaining to the quarters ended June 2024 and September 2024 for the Naira devaluation have been presented as an exceptional item with the following impact:
· the derivative and foreign exchange losses amounting to $231m, and
· the corresponding tax impact of $80m.
d) On 01 March 2024, the Company announced the commencement of its $100m share buy-back programme to be achieved in two tranches of maximum $50m each. Following the completion of its first tranche of the buy-back, the company has announced the commencement of its second tranche of the programme on 19 August 2024. As part of the programme, the Company has entered into an agreement with Citigroup Global Markets Limited ("Citi") to conduct the second tranche of the buy-back amounting to a maximum of $50m and carry out on-market purchases of its ordinary shares, with the Company subsequently purchasing its ordinary shares from Citi. During the six months ended 30 September 2024, the Company bought-back and cancelled 53,159,199 shares (28,194,416 and 24,964,783 against first and second tranche respectively), resulting in 3,697,602,450 ordinary shares outstanding as at 30 September 2024. The purchase price of the shares bought-back was $79m and the Company carries a liability of $12m as part of 'other financial liabilities' relating to the remaining buy-back against the second tranche of agreement with Citi. The nominal value ($0.5 per share) of the cancelled shares, amounting to $26m, has been transferred to the capital redemption reserve.
e) During the period, the Group has renewed the tower lease agreements with American Tower Corporation ('ATC') across four of its OpCos. The renewals relate to approximately 7,100 sites across Nigeria, Uganda, Kenya and Niger which were set to expire over the next 12 to 24 months and were renewed for a period of 12 years.
These material lease extensions of the tower lease agreements represent a modification in accordance with IFRS 16, accordingly, the company has applied modification accounting by remeasuring the lease liability using the updated lease payments over the revised lease term with a corresponding adjustment to the ROU asset. This has resulted in an increase in both lease liabilities and ROU assets by $ 1,225m.
5. Segmental information
The Group's segment information is provided on the basis of geographical clusters and products to the Group's chief executive officer (chief operating decision maker - 'CODM') for the purposes of resource allocation and assessment of performance.
The Group's operating segments are as follows:
Nigeria Mobile Services - Comprising of mobile service operations in Nigeria;
East Africa Mobile Services - Comprising of mobile service operations in Uganda, Zambia, Kenya, Tanzania, Malawi and Rwanda;
Francophone Africa Mobile Services - Comprising of mobile service operations in DRC, Gabon, Chad, Niger, Congo B, Madagascar and Seychelles;
Mobile money services*- Comprising of mobile money services across the Group.
* Mobile money services segment consolidates the results of mobile money operations from all operating entities within the Group. Airtel Money Commerce B.V. (AMC BV) is the holding company for all mobile money services for the Group, and as of 30 September 2024, it controls all mobile money operations excluding operations in Nigeria. It is management's intention to continue work to transfer the Nigerian mobile money services operations into AMC BV, subject to local regulatory approvals.
Each segment derives revenue from the respective services housed within each segment, as described above. Expenses, assets and liabilities primarily related to the corporate headquarters and centralised functions of the Group are presented as unallocated Items.
The amounts reported to CODM are based on the accounting principles used in the preparation of the financial statements. Each segment's performance is evaluated based on segment revenue and segment result.
The segment result is Underlying EBITDA (defined as operating profit/(loss) for the period before depreciation, amortisation and exceptional items). This is the measure reported to the CODM for the purpose of resource allocation and assessment of segment performance. During the six months ended 30 September 2024 and 30 September 2023, , the definition of EBITDA is equal to underlying EBITDA since there are no exceptional items pertaining to EBITDA and therefore EBITDA is presented in the segment information below.
Inter-segment pricing and terms are reviewed and changed by management to reflect changes in market conditions and changes to such terms are reflected in the period in which the changes occur.
The 'Eliminations' column comprises inter-segment revenues eliminated upon consolidation.
Segment assets and segment liabilities comprise those assets and liabilities directly managed by each segment. Segment assets primarily include receivables, property, plant and equipment, capital work in progress, right-to-use assets, intangibles assets, inventories and cash and cash equivalents. Segment liabilities primarily include operating liabilities. Segment capital expenditure comprises investment in property, plant and equipment, capital work in progress, intangible assets (excluding licenses) and capital advances.
Investment elimination upon consolidation and resulting goodwill impacts are reflected in the 'Eliminations' column.
Summary of the segmental information and disaggregation of revenue is as follows:
For the six months ended 30 September 2024
|
|
Nigeria mobile services |
East Africa mobile services |
Francophone Africa mobile services |
Mobile money |
Others (unallocated) |
|
Total |
|
|
Eliminations |
||||||||
|
Revenue from external customers |
|
|
|
|
|
|
|
|
|
Voice revenue |
209 |
438 |
313 |
- |
- |
- |
960 |
|
|
Data revenue |
229 |
355 |
260 |
- |
- |
- |
844 |
|
|
Mobile money revenue (1) |
- |
- |
- |
361 |
- |
- |
361 |
|
|
Other revenue (2) |
50 |
83 |
61 |
- |
11 |
- |
205 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from external customers |
488 |
876 |
634 |
361 |
11 |
- |
2,370 |
|
|
Inter-segment revenue |
1 |
7 |
2 |
105 |
4 |
(119) |
- |
|
|
Total revenue |
489 |
883 |
636 |
466 |
15 |
(119) |
2,370 |
|
|
EBITDA |
238 |
418 |
244 |
247 |
(60) |
- |
1,087 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Depreciation and amortisation |
92 |
158 |
115 |
10 |
6 |
- |
381 |
|
|
Finance costs |
|
|
|
|
|
|
|
|
|
- Derivative and foreign exchange losses |
|
|
|
|
|
|
|
|
|
Nigerian naira |
|
|
|
|
|
|
231 |
|
|
Other currencies |
|
|
|
|
|
|
29 |
|
|
- Other finance costs |
|
|
|
|
|
|
280 |
|
|
Finance income |
|
|
|
|
|
|
(12) |
|
|
Share of profit of associate and joint venture accounted for using equity method
|
|
|
|
|
|
|
(0) |
|
|
Profit before tax |
|
|
|
|
|
|
178 |
|
|
Other segment items |
|
|
|
|
|
|
|
|
|
Capital expenditure |
75 |
156 |
66 |
10 |
9 |
- |
316 |
|
|
|
|
|
|
|
|
|
|
|
|
As of 30 September 2024 |
|
|
|
|
|
|
|
|
|
Segment assets |
2,313 |
2,718 |
1,915 |
1,217 |
20,316 |
(17,830) |
10,649 |
|
|
Segment liabilities |
2,613 |
2,942 |
2,613 |
977 |
4,548 |
(5,214) |
8,479 |
|
|
Investment in associate accounted for using equity method (included in segment assets above) |
- |
- |
5 |
- |
- |
- |
5 |
|
(1) Mobile money revenue is net of inter-segment elimination of $105m mainly for commission on sale of airtime. It includes $71m pertaining to East Africa mobile services and the balance $34m pertaining to Francophone Africa mobile service.
(2) Other revenue includes messaging, value added services, enterprise, site sharing and handset sale revenue.
Summary of the segmental information and disaggregation of revenue is as follows:
For the six months ended 30 September 2023
|
|
Nigeria mobile services |
East Africa mobile services |
Francophone Africa mobile services |
Mobile money |
Others (unallocated) |
|
Total |
|
Eliminations |
|||||||
|
Revenue from external customers |
|
|
|
|
|
|
|
|
Voice revenue |
414 |
440 |
315 |
- |
- |
- |
1,169 |
|
Data revenue |
385 |
309 |
221 |
- |
- |
- |
915 |
|
Mobile money revenue (1) |
- |
- |
- |
323 |
- |
- |
323 |
|
Other revenue (2) |
78 |
66 |
66 |
- |
6 |
- |
216 |
|
|
|
|
|
|
|
|
|
|
Total revenue from external customers |
877 |
815 |
602 |
323 |
6 |
- |
2,623 |
|
Inter-segment revenue |
1 |
7 |
3 |
93 |
5 |
(109) |
- |
|
Total revenue |
878 |
822 |
605 |
416 |
11 |
(109) |
2,623 |
|
EBITDA |
474 |
408 |
264 |
214 |
(58) |
- |
1,302 |
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
Depreciation and amortisation |
156 |
145 |
103 |
9 |
4 |
- |
417 |
|
Finance costs |
|
|
|
|
|
|
|
|
- Derivative and foreign exchange losses |
|
|
|
|
|
|
|
|
Nigerian naira |
|
|
|
|
|
|
557 |
|
Other currencies |
|
|
|
|
|
|
97 |
|
- Other finance costs |
|
|
|
|
|
|
236 |
|
Finance income |
|
|
|
|
|
|
(17) |
|
Share of profit of associate and joint venture accounted for using equity method |
|
|
|
|
|
|
(0) |
|
Profit before tax |
|
|
|
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
Other segment items |
|
|
|
|
|
|
|
|
Capital expenditure |
109 |
107 |
77 |
10 |
9 |
- |
312 |
|
|
|
|
|
|
|
|
|
|
As of 31 March 2024 |
|
|
|
|
|
|
|
|
Segment assets |
1,675 |
2,336 |
1,647 |
1,151 |
20,774 |
(17,722) |
9,861 |
|
Segment liabilities |
1,890 |
2,569 |
2,346 |
929 |
9,338 |
(9,511) |
7,561 |
|
Investment in associate accounted for using equity method (included in segment assets above) |
|
- |
5 |
- |
- |
- |
5 |
(1) Mobile money revenue is net of inter-segment elimination of $93m mainly for commission on sale of airtime. It includes $63m pertaining to East Africa mobile services and balance $30m pertaining to Francophone Africa mobile services.
(2) Other revenue includes messaging, value added services, enterprise, site sharing and handset sale revenue.
6. Income tax
The major components of the income tax expense are:
|
|
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
Current tax |
136 |
197 |
|
Deferred tax |
(37) |
(172) |
|
Income tax expense |
99 |
25 |
The tax charge for the six months ended 30 September 2024 has been calculated for each operating country by applying the best estimate of the effective rate of tax expected to apply for the period ending 31 March 2025 on the pre-tax profits of the six months period using rates substantively enacted by 30 September 2024.
The charge is adjusted for discrete items (if any) occurring in the interim period as required by IAS 34 'Interim Financial Reporting'.
Tax charge for the six months ended 30 September 2024 also includes the related tax impacts arising out of withholding tax ('WHT') on unremitted earnings and cross charge to Group entities and deferred tax asset recognition basis projected profitability in operating countries, wherever applicable.
7. Exceptional items
Underlying profit before tax excludes the following exceptional items
|
|
For the six months ended |
|
|
|
|
30 September 2024 |
30 September 2023 |
|
|
Profit before tax |
178 |
12 |
|
|
|
|
|
|
|
Add: Exceptional items |
|
|
|
|
Finance costs |
|
|
|
|
- Derivative and foreign exchange losses |
|
|
|
|
Nigerian naira (refer to note 4(c)) |
231 |
471 |
|
|
|
231 |
471 |
|
|
Underlying profit before tax |
409 |
483 |
|
Underlying profit after tax excludes the following exceptional items:
|
|
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
Profit/ (Loss) after tax |
79 |
(13) |
|
-Exceptional items (as above) |
231 |
471 |
|
- Tax on above exceptional items |
|
|
|
Nigerian naira (refer to note 4(c)) |
(80) |
(154) |
|
|
151 |
317 |
|
Underlying profit after tax |
230 |
304 |
Profit attributable to non-controlling interests include benefit of $0m and $0m during the six months ended 30 September 2024 and 30 September 2023 respectively, relating to the above exceptional items.
8. Earnings per share ('EPS')
The details used in the computation of basic EPS:
|
|
For the six months ended |
||
|
|
30 September 2024 |
30 September 2023 |
|
|
|
|
|
|
|
Profit/(loss) for the period attributable to owners of the company |
31 |
(55) |
|
|
Weighted average ordinary shares outstanding for basic EPS |
3,726,752,375 |
3,751,042,649 |
|
|
|
|
|
|
|
Basic earnings/(loss) per share |
0.8 cents |
(1.5 cents) |
|
|
The details used in the computation of diluted EPS:
|
For the six months ended |
||
|
|
30 September 2024 |
30 September 2023 |
|
|
|
|
|
|
|
Profit/(loss) for the period attributable to owners of the company |
31 |
(55) |
|
|
Weighted average ordinary shares outstanding for diluted EPS(1)(2) |
3,731,482,789 |
3,751,042,649 |
|
|
|
|
|
|
|
Diluted earnings/(loss) per share |
0.8 cents |
(1.5 cents) |
|
|
(1) The difference between the basic and diluted number of shares at the end of September 2024 being 4,730,414 (September 2023: Nil) relates to awards committed but not yet issued under the Group's share-based payment schemes. (2) For the six months ended 30 September 2023, 5,714,418 shares granted under different share-based plans are not included in the calculation of diluted earnings per share as these are anti-dilutive on account of losses during the previous period. |
|||
9. Property, plant and equipment ('PPE')
The following table presents the reconciliation of changes in the carrying value of PPE for the six months ended 30 September 2024 and 30 September 2023:
|
|
Leasehold Improvements |
Building |
Land |
Plant and Equipment |
Furniture & Fixture |
Vehicles |
Office Equipment |
Computer |
Total |
Capital work in progress (2) |
|
Gross carrying value |
|
|
|
|
|
|
|
|
|
|
|
Balance as of 1 April 2023 |
49 |
43 |
25 |
3,249 |
70 |
22 |
61 |
696 |
4,215 |
212 |
|
Additions / capitalization |
0 |
0 |
- |
241 |
5 |
0 |
9 |
22 |
277 |
304 |
|
Disposals / adjustments (1) |
(0) |
(1) |
- |
(20) |
(4) |
0 |
1 |
0 |
(24) |
(277) |
|
Foreign currency translation impact |
(5) |
(5) |
(2) |
(910) |
(8) |
(0) |
(10) |
(94) |
(1,034) |
(46) |
|
Balance as of 30 September 2023 |
44 |
37 |
23 |
2,560 |
63 |
22 |
61 |
624 |
3,434 |
193 |
|
Balance as of 1 April 2024 |
44 |
33 |
24 |
2,382 |
61 |
21 |
57 |
593 |
3,215 |
232 |
|
Additions / capitalization |
0 |
- |
- |
271 |
2 |
0 |
10 |
33 |
316 |
306 |
|
Disposals / adjustments (1) |
(0) |
- |
- |
(4) |
(0) |
(0) |
(1) |
(1) |
(6) |
(316) |
|
Foreign currency translation impact |
0 |
(0) |
0 |
(136) |
(0) |
0 |
(2) |
(9) |
(147) |
(18) |
|
Balance as of 30 September 2024 |
44 |
33 |
24 |
2,513 |
63 |
21 |
64 |
616 |
3,378 |
204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Depreciation |
|
|
|
|
|
|
|
|
|
|
|
Balance as of 1 April 2023 |
42 |
19 |
- |
1,137 |
30 |
20 |
39 |
633 |
1,920 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge |
1 |
1 |
- |
181 |
6 |
0 |
8 |
18 |
215 |
- |
|
Disposals / adjustments (1) |
0 |
(0) |
- |
(26) |
(4) |
2 |
4 |
1 |
(23) |
- |
|
Foreign currency translation impact |
(4) |
(3) |
- |
(507) |
(4) |
(1) |
(9) |
(85) |
(613) |
- |
|
Balance as of 30 September 2023 |
39 |
17 |
- |
785 |
28 |
21 |
42 |
567 |
1,499 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of 1 April 2024 |
38 |
16 |
- |
704 |
28 |
20 |
43 |
539 |
1,388 |
- |
|
Charge |
1 |
1 |
- |
159 |
6 |
0 |
8 |
17 |
192 |
- |
|
Disposals / adjustments (1) |
(0) |
- |
- |
(3) |
(0) |
(0) |
(2) |
(2) |
(7) |
- |
|
Foreign currency translation impact |
0 |
(0) |
- |
(55) |
1 |
0 |
(1) |
(7) |
(62) |
- |
|
Balance as of 30 September 2024 |
39 |
17 |
- |
805 |
35 |
20 |
48 |
547 |
1,511 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying value |
|
|
|
|
|
|
|
|
|
|
|
As of 1 April 2023 |
7 |
24 |
25 |
2,112 |
40 |
2 |
22 |
63 |
2,295 |
212 |
|
As of 30 September 2023 |
5 |
20 |
23 |
1,775 |
35 |
1 |
19 |
57 |
1,935 |
193 |
|
As of 1 April 2024 |
6 |
17 |
24 |
1,678 |
33 |
1 |
14 |
54 |
1,827 |
232 |
|
As of 30 September 2024 |
5 |
16 |
24 |
1,708 |
28 |
1 |
16 |
69 |
1,867 |
204 |
-
(1) Related to the reversal of gross carrying value and accumulated depreciation on retirement/ disposal of PPE and reclassification from one category of asset to another.
(2) The carrying value of capital work-in-progress as of 30 September 2024 and 30 September 2023 mainly pertains to plant and equipment.
10. Goodwill
The following table presents the reconciliation of changes in the carrying value of goodwill for the six months ended 30 September 2024 and 30 September 2023
|
|
Goodwill |
|
Balance as of 1 April 2023 |
3,516 |
|
Foreign currency translation impact |
(527) |
|
Balance as of 30 September 2023 |
2,989 |
|
|
|
|
Balance as of 1 April 2024 |
2,569 |
|
Foreign currency translation impact |
(38) |
|
Balance as of 30 September 2024 |
2,531 |
11. Cash and bank balancess
|
Cash and cash equivalents |
As of |
|
|
|
30 September 2024 |
31 March 2024 |
|
Balances with banks |
|
|
|
- On current accounts |
251 |
190 |
|
- Bank deposits with original maturity of three months or less |
47 |
311 |
|
- On settlement account |
6 |
2 |
|
Balance held in wallets |
98 |
111 |
|
Remittance in transit |
3 |
5 |
|
Cash on hand |
1 |
1 |
|
|
406 |
620 |
Other bank balances
|
|
|
As of |
|
|
|
|
30 September 2024 |
31 March 2024 |
|
-Term deposits with banks with original maturity of |
|
31 |
344 |
|
more than three months but less than 12 months |
|
|
|
|
-Margin money deposits (1) |
|
9 |
9 |
|
-Unpaid dividend |
|
0 |
0 |
|
|
|
40 |
353 |
|
|
|
|
|
(1) Margin money deposits represent amount given as collateral for legal cases and/or bank guarantees for disputed matters.
For the purpose of the statement of cash flows, cash and cash equivalents are as follows:
|
|
|
As of |
|
|
|
|
30 September 2024 |
30 September 2023 |
|
Cash and cash equivalents as per statement of financial position |
|
406 |
429 |
|
Balance held under mobile money trust |
|
830 |
720 |
|
Bank overdraft |
|
(472) |
(414) |
|
|
|
764 |
735 |
12. Share capital
|
|
|
As of |
|
|
|
|
30 September 2024 |
31 March 2024 |
|
|
|
|
|
|
Issued, subscribed and fully paid-up shares (refer to note 4(d)) |
|
|
|
|
3,697,602,450 ordinary shares of $0.50 each (March 2024: 3,750,761,649) |
|
1,849 |
1,875 |
|
|
|
1,849 |
1,875 |
Terms/rights attached to equity shares
· Ordinary shares having par value of $0.50 per share. Each holder of equity shares is entitled to cast one vote per share and carry a right to dividends.
13. Borrowings
Non-current
|
|
|
As of |
|
|
|
|
30 September 2024 |
31 March 2024 |
|
Secured |
|
|
|
|
Term loans(1) |
|
171 |
124 |
|
|
|
171 |
124 |
|
Unsecured |
|
|
|
|
Term loans(1) |
|
952 |
823 |
|
|
|
952 |
823 |
|
|
|
|
|
|
|
|
1,123 |
947 |
Current
|
|
|
As of |
|
|
|
|
30 September 2024 |
31 March 2024 |
|
Secured |
|
|
|
|
Term loans(1) |
|
66 |
15 |
|
|
|
66 |
15 |
|
Unsecured |
|
|
|
|
Non- convertible bonds(1)(2) |
|
- |
550 |
|
Term loans(1) |
|
558 |
404 |
|
Bank overdraft |
|
472 |
457 |
|
|
|
1,030 |
1,411 |
|
|
|
1,096 |
1,426 |
(1) Includes debt origination costs.
(2) It includes impact of fair value hedges.
14. Contingent liabilities and commitments
(i) Contingent liabilities
|
|
|
As of |
|
|
|
|
30 September 2024 |
31 March 2024 |
|
|
|
|
|
|
(a) Taxes, duties and other demands (under adjudication / appeal / dispute) |
|
|
|
|
-Income tax |
|
20 |
13 |
|
-Value added tax |
|
25 |
20 |
|
-Customs duty & Excise duty |
|
8 |
9 |
|
-Other miscellaneous demands |
|
10 |
7 |
|
(b) Claims under legal and regulatory cases including arbitration matters |
|
79 |
76 |
|
|
|
142 |
125 |
The increase of $17m in contingent liabilities during the six months ended 30 September 2024 is primarily on account of new demand on income tax, regulatory cases and other taxes in some of the subsidiaries of the group.
Claims under legal and regulatory cases including arbitration matter
One of the subsidiaries of the Group is involved in a dispute with one of its vendors, with respect to invoices for services provided to a subsidiary under a service contract. The original order under the contract was issued by the subsidiary for a total amount of Central African Franc (CFA) 473,800,000 (approximately $1m). After a dispute on the payable amount in 2014, the vendor-initiated arbitration proceedings and was awarded CFA 1.9 billion (approximately $3m) which was paid by bank. The vendor fraudulently claimed not to have received the payment, and after multiple court proceeding from 2015 onwards and in mid-May 2019, the lower courts imposed a penalty of CFA 35 billion (approximately $58m), based on which certain banks of the subsidiary were summoned to release the funds. The subsidiary immediately lodged an appeal in the Supreme Court for a stay of execution which was granted. Subsequently, the vendor filed an appeal before the Common Court of Justice and Arbitration (CCJA). Quite unexpectedly, in April 2020, the CCJA lifted the Supreme Court stay of execution. In May 2021, the Commercial Division of the High Court maintained new seizures carried out by the vendor. In March 2022 the CCJA interpreted its judgment of March 2019 to indicate that the daily penalty could not be maintained after its ruling dated 18 November 2018.
Separately, in December 2020 the subsidiary initiated criminal proceedings against the vendor for fraud and deceitful conduct. In February 2021, the investigating judge issued an order to cease the investigation which was appealed by the Subsidiary. In March 2022, the Court Appeal quashed the investigative judge order and allowed the investigation into the vendor to resume. Testimony in the criminal investigation case happened on 26 April 2022 before the criminal chamber in the Court of Appeal where the honorable judge has further re-examined the facts from the representatives of the subsidiary against this case. A stay of execution was issued on 30 May 2022 by the Chamber of Accusation in favour of subsidiary till the time criminal investigation is completed. In October 2023, the criminal court ordered the dismissal of the case despite evidence of initial payment provided to the judge. The subsidiary has appealed to the Supreme Court, and a decision is awaited.
The substantial appeal has been transferred to CCJA in February 2024, and all Parties have filed their submissions. On 26 June 2024, the vendor filed their last response at the CCJA. No further responses will be submitted by either Party.
On 02 April 2024, Vendor notified the subsidiary with an injunction to pay CFA 54.7 billion (approximately $89m) which was not a court order, after which multiple provisional enforcement measures were instituted against the subsidiary in Apr 2024 including attachment of transferable securities and negotiable instruments of Group entity, attachment for sale of movable assets and attachment for sale of fixed assets. The subsidiary opposed the attachments but the judge allowed their continuation, a decision which was further appealed on 17 Jun 2024. No hearing date has been set.
Also on 12 June 2024, the subsidiary filed a request for a stay of execution with the Supreme Court, pending the decision of the CCJA, which was declared inadmissible on 5 July 2024.
The Group still awaits the decision from CCJA on the merits of the case, and the outcome of the criminal investigations, and until that time has disclosed this matter as Contingent Liability for $60m (included in the closing contingent liability). No provision has been made against this claim.
In addition to the individual matters disclosed above, in the ordinary course of business, the Group is a defendant or co-defendant in various litigations and claims which are immaterial individually.
Guarantees:
Guarantees outstanding as of 30 September 2024 and 31 March 2024 amounting to $12m and $12m respectively have been issued by banks and financial institutions on behalf of the Group. These guarantees include certain financial bank guarantees which have been given for sub-judice matters and the amounts with respect to these have been disclosed under capital commitments, contingencies and liabilities, as applicable, in compliance with the applicable accounting standards.
Commitments
Capital Commitments
The Group has contractual commitments towards capital expenditure (net of related advances paid) of $314m and $317m as of 30 September 2024 and 31 March 2024 respectively.
15. Related Party disclosure
a) List of related parties
i) Parent company
Airtel Africa Mauritius Limited
ii) Intermediate parent entities
Network i2i Limited
Bharti Airtel Limited
Bharti Telecom Limited
iii) Ultimate controlling entity
Bharti Enterprises (Holding) Private Limited. It is held by private trusts of Bharti family, with Mr. Sunil Bharti Mittal's family trust effectively controlling the company.
iv) Associate:
Seychelles Cable Systems Company Limited
v) Joint Venture
Mawezi RDC S.A.
vi) Other entities with whom transactions have taken place during the reporting period
a. Fellow subsidiaries
Nxtra Data Limited
Bharti Airtel Services Limited
Bharti International (Singapore) Pte Ltd
Bharti Airtel (UK) Limited
Bharti Airtel (France) SAS
Bharti Airtel Lanka (Private) Limited
Bharti Hexacom Limited
b. Other related parties
Singapore Telecommunication Limited
Bharti Global Limited
vii) Key Management Personnel ('KMP')
a. Executive directors
Olusegun Ogunsanya (till June 2024)
Sunil Taldar (w.e.f 01 July 2024)
Jaideep Paul
b. Non-Executive directors
Sunil Bharti Mittal
Awuneba Ajumogobia
Douglas Baillie (till October 2023)
John Danilovich (retired w.e.f. 3 July 2024)
Andrew James Green
Akhil Gupta
Shravin Bharti Mittal
Annika Poutiainen
Ravi Rajagopal
Kelly Bayer Rosmarin (till October 2023)
Tsega Gebreyes
Paul Thomas Arkwright (since May 2024)
c. Others
Ian Basil Ferrao
Michael Foley (till June 2023)
Razvan Ungureanu
Luc Serviant (till May 2023)
Daddy Mukadi Bujitu
Ramakrishna Lella
Edgard Maidou (till June 2023)
Rogany Ramiah
Stephen Nthenge
Anthony Shiner (since June 2024)
Apoorva Mehrotra
Oliver Fortuin (since June 2023)
Martin Frechette (since June 2023)
Carl Cruz (since May 2023)
Anwar Soussa (since August 2023)
Rohit Marwah (since April 2024)
Sunil Taldar (from October 2023 to June 2024)
Jacques Barkhuizen (since October 2023)
(b) The summary of significant transactions with the related parties for the six months ended 30 September 2024 and 30 September 2023 respectively are provided below:-
|
|
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
Sales/rendering of services |
|
|
|
Bharti Airtel (UK) Limited |
38 |
42 |
|
Bharti Airtel Limited |
1 |
5 |
|
|
|
|
|
Purchase/receiving of services |
|
|
|
Bharti Airtel (France) SAS |
8 |
9 |
|
Bharti Airtel (UK) Limited |
15 |
19 |
|
Bharti Airtel Limited |
5 |
6 |
|
|
|
|
|
Dividend paid |
|
|
|
Bharti Airtel Mauritius Limited |
75 |
69 |
(c) Key management compensation ('KMP')
KMP are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including any director, whether executive or otherwise. For the Group, these include executive committee members. Remuneration to KMP were as follows:
|
|
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
Short-term employee benefits |
6 |
5 |
|
Performance linked incentive |
2 |
2 |
|
Share-based payment |
3 |
1 |
|
Other long term benefits |
1 |
1 |
|
Other benefits |
1 |
1 |
|
|
13 |
10 |
16. Fair Value of financial assets and liabilities
The details as to the carrying value, fair value and the level of fair value measurement hierarchy of the group's financial instruments are as follows:
|
|
|
Carrying value as of |
Fair value as of |
||
|
|
30 September 2024 |
31 March 2024 |
30 September 2024 |
31 March 2024 |
|
|
Financial assets |
|
|
|
|
|
|
FVTPL |
|
|
|
|
|
|
Derivatives |
|
|
|
|
|
|
- Forward and option |
Level 2 |
2 |
10 |
2 |
10 |
|
Other bank balances |
Level 2 |
0 |
0 |
0 |
0 |
|
Investments |
Level 2 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
FVTOCI |
|
|
|
|
|
|
Investments |
Level 2 |
1 |
2 |
1 |
2 |
|
Amortised cost |
|
|
|
|
|
|
Trade receivables |
|
192 |
184 |
192 |
184 |
|
Cash and cash equivalents |
|
406 |
620 |
406 |
620 |
|
Other bank balances |
|
40 |
353 |
40 |
353 |
|
Balance held under mobile money trust |
|
830 |
737 |
830 |
737 |
|
Other financial assets |
|
85 |
136 |
85 |
136 |
|
|
|
|
|
|
|
|
|
|
1,556 |
2,042 |
1,556 |
2,042 |
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
FVTPL |
|
|
|
|
|
|
Derivatives |
|
|
|
|
|
|
- Forward and option |
Level 2 |
6 |
22 |
6 |
22 |
|
- Cross currency swaps |
Level 3 |
62 |
155 |
62 |
155 |
|
- Embedded derivatives |
Level 2 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Amortised cost |
|
|
|
|
|
|
Long term borrowings - fixed rate |
Level 2 |
478 |
271 |
490 |
257 |
|
Long term borrowings - floating rate |
|
645 |
676 |
645 |
676 |
|
Short term borrowings - fixed rate |
Level 1 |
- |
550 |
- |
549 |
|
Short term borrowings |
|
1,096 |
876 |
1,096 |
876 |
|
Put option liability |
Level 3 |
539 |
552 |
539 |
552 |
|
Trade payables |
|
425 |
422 |
425 |
422 |
|
Mobile money wallet balance |
|
808 |
722 |
808 |
722 |
|
Other financial liabilities |
|
491 |
586 |
491 |
586 |
|
|
|
4,550 |
4,832 |
4,562 |
4,817 |
The following methods/assumptions were used to estimate the fair values:
· The carrying value of bank deposits, trade receivables, trade payables, balance held under mobile money trust, mobile money wallet balance, short-term borrowings, other current financial assets and liabilities approximate their fair value mainly due to the short-term maturities of these instruments.
· Fair value of quoted financial instruments is based on quoted market price at the reporting date.
· The fair value of non-current financial assets, long-term borrowings and other financial liabilities is estimated by discounting future cash flows using current rates applicable to instruments with similar terms, currency, credit risk and remaining maturities.
· The fair values of derivatives are estimated by using pricing models, wherein the inputs to those models are based on readily observable market parameters. The valuation models used by the Group reflect the contractual terms of the derivatives (including the period to maturity), and market-based parameters such as interest rates, foreign exchange rates, volatility etc. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement and inputs thereto are readily observable. For details pertaining to valuation of cross currency swaps, please refer to level 3 details below.
· The fair value of the put option liability to buy back the stake held by non-controlling interest in AMC BV is measured at the present value of the redemption amount (i.e. expected cash outflows). Since, the liability will be based on fair value of the equity shares of AMC BV (subject to a cap) at the end of 48 months , the expected cash flows are estimated by determining the projected equity valuation of the AMC BV at the end of 48 months expiring in August 2025 and applying cap thereon.
During the six months ended 30 September 2024 and 31 March 2024 there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.
The following table describes the key inputs used in the valuation (basis discounted cash flow technique) of the Level 2 financial assets/liabilities as of 30 September 2024 and 31 March 2024:
|
|
Financial assets / liabilities |
|
|
|
Inputs used |
|
|
|
|
||
|
- |
Currency swaps, forward and option contracts and other bank balances |
|
Forward foreign currency exchange rates, Interest rate |
|
|||||||
|
- |
Interest rate swaps |
|
|
|
|
Prevailing / forward interest rates in market, Interest rate |
|
||||
|
- |
Embedded derivatives |
|
|
|
Prevailing interest rates in market, inflation rates |
|
|||||
|
- |
Other financial assets / fixed rate borrowing / other financial liabilities |
Prevailing interest rates in market, Future payouts, Interest rates |
|
||||||||
Key inputs for level 3
The fair value of cross currency swap (CCS) has been estimated based on the contractual terms of the CCS and parameters such as interest rates, foreign exchange rates etc. Since the data from any observable markets in respect of interest rates is not available, the interest rates are considered to be significant unobservable inputs to the valuation of this CCS.
Reconciliation of fair value measurements categorised within level 3 of the fair value hierarchy - Financial Assets/(Liabilities) (net)
• Cross Currency Swaps ('CCS')
|
|
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
Opening Balance |
(155) |
(43) |
|
Recognized in finance costs in profit and loss (unrealised) |
(38) |
(121) |
|
Repayment of cross currency swap & interest |
105 |
4 |
|
Foreign currency translation impact recognized in OCI |
26 |
42 |
|
Closing Balance |
(62) |
(118) |
• Put option liability
|
|
For the six months ended |
|
|
|
30 September 2024 |
30 September 2023 |
|
Opening Balance |
552 |
569 |
|
Liability de-recognized by crediting transaction with NCI reserve(1) |
(15) |
(10) |
|
Recognized in finance costs in profit and loss (unrealised) |
2 |
3 |
|
Closing Balance |
539 |
562 |
(1) Put option liability was reduced by $15m (30 September 2023 $10m) for dividend distribution to put option NCI holders. Any dividend paid to the put option NCI holders is adjustable against the put option liability based on put option arrangement.
17. Events after the balance sheet date
No material subsequent events or transactions have occurred since the date of statement of financial position except as disclosed below:
· The interim dividend of 2.60 cents per share was approved by the Board on 24 October 2024 and has not been included as a liability as at 30 September 2024.
Appendix
Additional information pertaining to three months ended 30 September 2024
Condensed Consolidated Statement of Comprehensive Income
(All amounts are in US$ millions unless stated otherwise)
|
|
|
For three months ended |
|
|
|
|
30 September 2024 |
30 September 2023 |
|
Income |
|
|
|
|
Revenue |
|
1,214 |
1,246 |
|
Other income |
|
4 |
9 |
|
|
|
1,218 |
1,255 |
|
Expenses |
|
|
|
|
Network operating expenses |
|
232 |
223 |
|
Access charges |
|
61 |
78 |
|
License fee and spectrum usage charges |
|
65 |
60 |
|
Employee benefits expense |
|
77 |
79 |
|
Sales and marketing expenses |
|
161 |
149 |
|
Reversal of impairment loss on financial assets |
|
1 |
1 |
|
Other expenses |
|
57 |
45 |
|
Depreciation and amortisation |
|
193 |
197 |
|
|
|
847 |
832 |
|
|
|
|
|
|
Operating profit |
|
371 |
423 |
|
|
|
|
|
|
Finance costs - Derivative and foreign exchange losses |
|
|
|
|
Nigerian naira |
|
109 |
34 |
|
Other currencies |
|
15 |
50 |
|
- Other finance costs |
|
147 |
115 |
|
Finance income |
|
(4) |
(9) |
|
Share of profit for associate and joint venture accounted for using equity method |
|
(0) |
(0) |
|
Profit before tax |
|
104 |
233 |
|
|
|
|
|
|
Tax expense |
|
56 |
95 |
|
Profit for the period |
|
48 |
138 |
|
|
|
|
|
|
Profit before tax (as presented above) |
|
104 |
233 |
|
Add: Exceptional items (net) |
|
109 |
- |
|
Underlying profit before tax |
|
213 |
233 |
|
|
|
|
|
|
Profit after tax (as presented above) |
|
48 |
138 |
|
Add: Exceptional items (net) |
|
71 |
- |
|
Underlying profit after tax |
|
119 |
138 |
|
|
|
|
|
|
Other comprehensive income ('OCI') |
|
|
|
|
Items to be reclassified subsequently to profit or loss: |
|
|
|
|
Loss due to foreign currency translation differences |
|
(8) |
(114) |
|
Gain on debt instruments at fair value through other comprehensive income |
|
0 |
- |
|
Share of OCI of associate and joint venture accounted for using equity method |
|
0 |
(0) |
|
Loss on cash flow hedges |
|
(0) |
- |
|
Tax on above |
|
1 |
0 |
|
|
|
(7) |
(114) |
|
Items not to be reclassified subsequently to profit or loss: |
|
|
|
|
Re-measurement loss on defined benefit plans |
|
(1) |
(1) |
|
Tax on above |
|
0 |
0 |
|
|
|
(1) |
(1) |
|
|
|
|
|
|
Other comprehensive loss for the period |
|
(8) |
(115) |
|
Total comprehensive income for the period |
|
40 |
23 |
|
|
|
|
|
|
|
|
For three months ended |
|
|
|
|
30 September 2024 |
30 September 2023 |
|
|
|
|
|
|
Profit for the period attributable to: |
|
48 |
138 |
|
|
|
|
|
|
Owners of the company |
|
24 |
115 |
|
Non-controlling interests |
|
24 |
23 |
|
|
|
|
|
|
Other comprehensive loss for the period attributable to: |
|
(8) |
(115) |
|
|
|
|
|
|
Owners of the company |
|
(5) |
(106) |
|
Non-controlling interests |
|
(3) |
(9) |
|
|
|
|
|
|
Total comprehensive income for the period attributable to: |
|
40 |
23 |
|
|
|
|
|
|
Owners of the company |
|
19 |
9 |
|
Non-controlling interests |
|
21 |
14 |
Alternative performance measures (APMs)
Introduction
In the reporting of financial information, the directors have adopted various APMs. These measures are not defined by International Financial Reporting Standards (IFRS) and therefore may not be directly comparable with other companies APMs, including those in the Group's industry.
APMs should be considered in addition to, and are not intended to be a substitute for, or superior to, IFRS measurements.
Purpose
The directors believe that these APMs assist in providing additional useful information on the underlying trends, performance and position of the Group.
APMs are also used to enhance the comparability of information between reporting periods and geographical units (such as like-for-like sales), by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid users in understanding the Group's performance. Consequently, APMs are used by the directors and management for performance analysis, planning, reporting and incentive-setting purposes.
The directors believe the following metrics to be the APMs used by the Group to help evaluate growth trends, establish budgets and assess operational performance and efficiencies. These measures provide an enhanced understanding of the Group's results and related trends, therefore increasing transparency and clarity into the core results of the business.
While the directors during the period have not changed any APMs, the Group have amended their basis of classification of foreign exchange gains or losses which is disclosed as exceptional. This change has been made to ensure that only significant foreign exchange movements are classified as exceptional which will better align with current foreign exchange movements in the market. This change has been applied prospectively but had it been applied in the half year ended 30 September 2023, an additional $52m of derivative and foreign exchange losses relating to Nigeria would have been classified as exceptional in the prior period. The only APMs impacted by the classification of foreign exchange movements as exceptional include underlying profit/(loss) before tax, effective tax rate, underlying profit/(loss) after tax, earnings per share before exceptional items and earnings per share before exceptional items and derivative and foreign exchange losses.
The following metrics are useful in evaluating the Group's operating performance:
|
APM |
Closest equivalent IFRS measure |
Adjustments to reconcile to IFRS measure |
Definition and purpose |
|
EBITDA and margin |
Operating profit |
· Depreciation and amortisation
|
The Group defines EBITDA as operating profit/(loss) for the period before depreciation and amortisation. The Group defines EBITDA margin as EBITDA divided by revenue. EBITDA and margin are measures used by the directors to assess the trading performance of the business and are therefore the measure of segment profit that the Group presents under IFRS. EBITDA and margin are also presented on a consolidated basis because the directors believe it is important to consider profitability on a basis consistent with that of the Group's operating segments. When presented on a consolidated basis, EBITDA and margin are APMs. Depreciation and amortisation is a non-cash item which fluctuates depending on the timing of capital investment and useful economic life. Directors believe that a measure which removes this volatility improves comparability of the Group's results period on period and hence is adjusted to arrive at EBITDA and margin. |
|
Underlying profit / (loss) before tax |
Profit / (loss) before tax |
· Exceptional items |
The Group defines underlying profit/(loss) before tax as profit/(loss) before tax adjusted for exceptional items. The directors view underlying profit/(loss) before tax to be a meaningful measure to analyse the Group's profitability. |
|
Effective tax rate |
Reported tax rate |
· Exceptional items · Foreign exchange rate movements · One-off tax impact of prior period, tax litigation settlement and impact of tax on permanent differences |
The Group defines effective tax rate as reported tax rate (reported tax charge divided by reported profit before tax) adjusted for exceptional items, foreign exchange rate movements and one-off tax items of prior period adjustment, tax settlements and impact of permanent differences on tax. This provides an indication of the current on-going tax rate across the Group. Foreign exchange rate movements are specific items that are non-tax deductible in a few of the entities which are loss making and/or where DTA is not yet triggered and hence are considered to hinder comparison of the Group's effective tax rate on a period-to-period basis and therefore excluded to arrive at effective tax rate. One-off tax impact on account of prior period adjustment, any tax litigation settlement and tax impact on permanent differences are additional specific items that because of their size and frequency in the results, are considered to hinder comparison of the Group's effective tax rate on a period-to-period basis. |
|
Underlying profit/(loss) after tax |
Profit/(loss) for the period |
· Exceptional items |
The Group defines underlying profit/(loss) after tax as profit/(loss) for the period adjusted for exceptional items. The directors view underlying profit/(loss) after tax to be a meaningful measure to analyse the Group's profitability. |
|
Earnings per share before exceptional items |
EPS |
· Exceptional items |
The Group defines earnings per share before exceptional items as profit/(loss) for the period before exceptional items attributable to owners of the company divided by the weighted average number of ordinary shares in issue during the financial period. This measure reflects the earnings per share before exceptional items for each share unit of the company. |
|
Earnings per share before exceptional items and derivative and foreign exchange losses |
EPS |
· Exceptional items · Derivative and foreign exchange losses |
The Group defines earnings per share before exceptional items and derivative and foreign exchange losses as profit/(loss) for the period before exceptional items and derivative and foreign exchange losses (net of tax) attributable to owners of the company divided by the weighted average number of ordinary shares in issue during the financial period. This measure reflects the earnings per share before exceptional items and derivative and foreign exchange losses for each share unit of the company. Derivative and foreign exchange losses are due to revaluation of US dollar balance sheet liabilities and derivatives as a result of currency devaluation.
|
|
Operating free cash flow |
Cash generated from operating activities |
· Income tax paid · Changes in working capital · Other non-cash items · Non-operating income · Exceptional items · Capital expenditures |
The Group defines operating free cash flow as net cash generated from operating activities before income tax paid, changes in working capital, other non-cash items, non-operating income, exceptional items, and after capital expenditures. The Group views operating free cash flow as a key liquidity measure, as it indicates the cash available to pay dividends, repay debt or make further investments in the Group. |
|
Net debt and leverage ratio |
Borrowings |
· Lease liabilities · Cash and cash equivalent · Term deposits with banks · Deposits given against borrowings/ non-derivative financial instruments · Fair value hedges |
The Group defines net debt as borrowings including lease liabilities less cash and cash equivalents, term deposits with banks, deposits given against borrowings/non-derivative financial instruments, processing costs related to borrowings and fair value hedge adjustments. The Group defines leverage ratio as net debt divided by EBITDA for the preceding 12 months. The directors view net debt and the leverage ratio to be meaningful measures to monitor the Group's ability to cover its debt through its earnings. |
|
Return on capital employed |
No direct equivalent |
· Exceptional items to arrive at EBIT |
The Group defines return on capital employed ('ROCE') as EBIT divided by average capital employed. The directors view ROCE as a financial ratio that measures the Group's profitability and the efficiency with which its capital is being utilised. The Group defines EBIT as operating profit/(loss) for the period. Capital employed is defined as sum of equity attributable to owners of the company (grossed up for put option provided to minority shareholders to provide them liquidity as part of the sale agreements executed with them during year ended 31 March 2022), non-controlling interests and net debt. Average capital employed is average of capital employed at the closing and beginning of the relevant period. For quarterly computations, ROCE is calculated by dividing EBIT for the preceding 12 months by the average capital employed (being the average of the capital employed averages for the preceding four quarters). |
Some of the Group's IFRS measures and APMs are translated at constant currency exchange rates to measure the organic performance of the Group. In determining the percentage change in constant currency terms, both current and previous financial reporting period's results have been converted using exchange rates prevailing as on 31 March 2024 for all countries. Reported currency percentage change is derived based on the average actual periodic exchange rates for that financial period. Variances between constant currency and reported currency percentages are due to exchange rate movements between the previous financial reporting period and the current period. The constant currency numbers only reflect the retranslation of reported numbers into exchange rates as of 31 March 2024 and are not intended to represent the wider impact that currency changes have on the business.
Reconciliation between GAAP and Alternative Performance Measures
Table A: EBITDA and margin
|
Description |
Unit of measure |
Half year ended |
|
|
September 2024 |
September 2023 |
||
|
Operating profit |
$m |
706 |
885 |
|
Add: |
|
|
|
|
Depreciation and amortisation |
$m |
381 |
417 |
|
EBITDA |
$m |
1,087 |
1,302 |
|
Revenue |
$m |
2,370 |
2,623 |
|
EBITDA margin (%) |
% |
45.8% |
49.6% |
Table B: Underlying profit / (loss) before tax
|
Description |
Unit of measure |
Half year ended |
|
|
September 2024 |
September 2023 |
||
|
Profit before tax |
$m |
178 |
12 |
|
Finance cost - exceptional items |
$m |
231 |
471 |
|
Underlying profit before tax |
$m |
409 |
483 |
Table C: Effective tax rate
|
Description |
Unit of measure |
Half year ended |
|||||||
|
September 2024 |
September 2023 |
||||||||
|
Profit before taxation |
Income tax expense |
Tax rate % |
Profit before taxation |
Income tax expense |
Tax rate % |
||||
|
Reported effective tax rate (after EI) |
$m |
178 |
99 |
55.5% |
12 |
25 |
207.7% |
||
|
Exceptional items (provided below) |
$m |
231 |
80 |
|
471 |
154 |
|
||
|
Reported effective tax rate (before EI) |
$m |
409 |
179 |
43.7% |
483 |
179 |
36.9% |
||
|
Adjusted for: |
|
|
|
|
|
|
|
||
|
Foreign exchange rate movement for loss making entity and/or non-DTA operating companies & holding companies |
$m |
13 |
- |
|
46 |
- |
|
||
|
One-off adjustment and tax on permanent differences |
$m |
- |
(9) |
|
- |
28 |
|
||
|
Effective tax rate |
$m |
422 |
170 |
40.3% |
529 |
207 |
39.0% |
||
|
|
|
|
|
|
|
|
||
|
Derivative and foreign exchange rate losses |
$m |
231 |
80 |
|
471 |
154 |
- |
||
|
Total |
$m |
231 |
80 |
|
471 |
154 |
|
||
a. $80m exceptional tax gain in half year period ended 30 September 2024 is tax gain corresponding to $231m derivative and foreign exchange losses following Nigerian naira devaluation. In prior period, $154m exceptional tax gain on derivative and foreign exchange losses of $471m was also on account of Nigerian naira devaluation.
Table D: Underlying profit / (loss) after tax
|
Description |
Unit of measure |
Half year ended |
|
|
September 2024 |
September 2023 |
||
|
Profit/(loss) after tax |
$m |
79 |
(13) |
|
Finance cost - exceptional items |
$m |
231 |
471 |
|
Tax exceptional items |
$m |
(80) |
(154) |
|
Underlying profit after tax |
$m |
230 |
304 |
Table E: Earnings per share before exceptional items
|
Description |
Unit of measure |
Half year ended |
|
|
September 2024 |
September 2023 |
||
|
Profit/(loss) for the period attributable to owners of the company |
$m |
31 |
(55) |
|
Finance cost - exceptional items |
$m |
231 |
471 |
|
Tax exceptional items |
$m |
(80) |
(154) |
|
Non-controlling interest exceptional items |
$m |
(0) |
(0) |
|
Profit for the period attributable to owners of the company- before exceptional items |
$m |
182 |
262 |
|
Weighted average number of ordinary shares in issue during the financial period. |
Million |
3,727 |
3,751 |
|
Earnings per share before exceptional items |
Cents |
4.9 |
7.0 |
Table F: Earnings per share before exceptional items and derivative and foreign exchange losses
|
Description |
UoM |
Half year ended |
|
|
September 2024 |
September 2023 |
||
|
Profit/(loss) for the period attributable to owners of the company |
$m |
31 |
(55) |
|
Finance cost - exceptional items |
$m |
231 |
471 |
|
Tax exceptional items |
$m |
(80) |
(154) |
|
Non-controlling interest exceptional items |
$m |
(0) |
(0) |
|
Profit for the period attributable to owners of the company- before exceptional items |
$m |
182 |
262 |
|
Derivative and foreign exchange losses (excluding exceptional items) |
$m |
29 |
183 |
|
Tax on derivative and foreign exchange losses (excluding exceptional items) |
$m |
(5) |
(45) |
|
Non-controlling interest on derivative and foreign exchange losses (excluding exceptional items) - net of tax |
$m |
(6) |
(8) |
|
Profit for the period attributable to owners of the company- before exceptional items and derivative and foreign exchange losses |
$m |
200 |
392 |
|
Weighted average number of ordinary shares in issue during the financial period |
Million |
3,727 |
3,751 |
|
Earnings per share before exceptional items and derivative and foreign exchange losses |
Cents |
5.4 |
10.5 |
Table G: Operating free cash flow
|
Description |
Unit of measure |
Half year ended |
|
|
September 2024 |
September 2023 |
||
|
Net cash generated from operating activities |
$m |
979 |
1,121 |
|
Add: Income tax paid |
$m |
200 |
227 |
|
Net cash generation from operation before tax |
$m |
1,179 |
1,348 |
|
Less: Changes in working capital |
|
|
|
|
Increase in trade receivables |
$m |
16 |
38 |
|
Increase in inventories |
$m |
6 |
7 |
|
Increase in trade payables |
$m |
(17) |
(8) |
|
Increase in mobile money wallet balance |
$m |
(89) |
(139) |
|
Decrease in provisions |
$m |
6 |
18 |
|
Increase in deferred revenue |
$m |
(4) |
(10) |
|
Increase in other financial and non-financial liabilities |
$m |
(3) |
(24) |
|
Increase in other financial and non-financial assets |
$m |
0 |
71 |
|
Operating cash flow before changes in working capital |
$m |
1,094 |
1,301 |
|
Other non-cash adjustments |
$m |
(7) |
1 |
|
EBITDA |
$m |
1,087 |
1,302 |
|
Less: Capital expenditure |
$m |
(316) |
(312) |
|
Operating free cash flow |
$m |
771 |
990 |
Table H: Net debt and leverage
|
Description |
Unit of measure |
As at |
As at |
As at |
|
September 2024 |
March 2024 |
September 2023 |
||
|
Long term borrowing, net of current portion |
$m |
1,123 |
947 |
933 |
|
Short-term borrowings and current portion of long-term borrowing |
$m |
1,096 |
1,426 |
1,371 |
|
Add: Processing costs related to borrowings |
$m |
10 |
8 |
7 |
|
Less: Fair value hedge adjustment |
$m |
- |
(1) |
(3) |
|
Less: Cash and cash equivalents |
$m |
(406) |
(620) |
(429) |
|
Less: Term deposits with banks |
$m |
(31) |
(344) |
(357) |
|
Add: Lease liabilities |
$m |
3,363 |
2,089 |
1,805 |
|
Net debt |
$m |
5,155 |
3,505 |
3,327 |
|
EBITDA (LTM) |
$m |
2,213 |
2,428 |
2,621 |
|
Leverage (LTM) |
times |
2.3 |
1.4 |
1.3 |
Table I: Return on capital employed
|
Description |
Unit of measure |
Year ended |
|
|
September 2024 |
September 2023 |
||
|
Operating profit (LTM) |
$m |
1,461 |
1,770 |
|
Equity attributable to owners of the Company |
$m |
2,028 |
2,809 |
|
Add: Put option given to minority shareholders 1 |
$m |
539 |
562 |
|
Gross equity attributable to owners of the Company 1 |
$m |
2,567 |
3,371 |
|
Non-controlling interests (NCI) |
$m |
142 |
168 |
|
Net debt (refer Table H) |
$m |
5,155 |
3,327 |
|
Capital employed |
$m |
7,864 |
6,867 |
|
Average capital employed 1 |
$m |
7,365 |
7,155 |
|
Return on capital employed |
% |
19.8% |
24.7% |
(1) Average capital employed is calculated as average of capital employed at closing and opening of relevant period.
Independent review report to Airtel Africa plc
Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2024 which comprises the interim condensed consolidated statement of comprehensive income, the interim condensed consolidated statement of financial position, the interim condensed consolidated statement of changes in equity, the interim condensed consolidated statement of cash flows and related notes 1 to 17.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2024 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however future events or conditions may cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for expressing to the company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our Conclusion, including our Conclusion Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Birmingham, United Kingdom
24 October 2024
Statement of Director's Responsibilities
We confirm that to the best of our knowledge:
a) The condensed set of financial statements has been prepared in accordance with UK-adopted IAS 34 'Interim Financial Reporting';
b) The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events and their impact during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).
This responsibility statement was approved by the board of directors on 24 October 2024 and is signed on its behalf by:
Sunil Taldar
Chief Executive Officer
24 October 2024
Glossary
Technical and Industry Terms
|
4G data customer |
A customer having a 4G handset and who has used at least 1 MB on any of the Group's GPRS, 3G and 4G network in the last 30 days. |
|
Airtel Money (mobile money) |
Airtel Money is the brand name for Airtel Africa's mobile money products and services. The term is used interchangeably with 'mobile money' when referring to our mobile money business, finance, operations and activities. |
|
Airtel Money ARPU |
Mobile money average revenue per user per month. This is derived by dividing total mobile money revenue during the relevant period by the average number of active mobile money customers and dividing the result by the number of months in the relevant period. |
|
Airtel Money customer base |
Total number of active subscribers who have enacted any mobile money usage event in last 30 days. |
|
Airtel Money customer penetration |
The proportion of total Airtel Africa active mobile customers who use mobile money services. Calculated by dividing the mobile money customer base by the Group's total customer base. |
|
Airtel Money transaction value |
Any financial transaction performed on Airtel Africa's mobile money platform. |
|
Airtel Money transaction value per customer per month |
Calculated by dividing the total mobile money transaction value on the Group's mobile money platform during the relevant period by the average number of active mobile money customers and dividing the result by the number of months in the relevant period. |
|
Airtime credit service |
A value-added service where the customer can take an airtime credit and continue to use our voice and data services, with the credit recovered through subsequent customer recharge. This is classified as a Mobile Services product (not a Mobile Money product). |
|
ARPU |
Average revenue per user per month. This is derived by dividing total revenue during the relevant period by the average number of customers during the period and dividing the result by the number of months in the relevant period. |
|
Average customers |
The average number of active customers for a period. Derived from the monthly averages during the relevant period. Monthly averages are calculated using the number of active customers at the beginning and the end of each month. |
|
Capital expenditure |
An alternative performance measure (non-GAAP). Defined as investment in gross fixed assets (both tangible and intangible but excluding spectrum and licences) plus capital work in progress (CWIP), excluding provisions on CWIP for the period. |
|
Constant currency |
The Group has presented certain financial information that is calculated by translating the results at a fixed 'constant currency' exchange rate, which is done to measure the organic performance of the Group and represents the performance of the business in a better way. Constant currency amounts and growth rates are calculated using closing exchange rates as of 31 March 2024 for all reporting regions and service segments. |
|
Customer |
Defined as a unique active subscriber with a unique mobile telephone number who has used any of Airtel's services in the last 30 days. |
|
Customer base |
The total number of active subscribers that have used any of our services (voice calls, SMS, data usage or mobile money transaction) in the last 30 days. |
|
Data ARPU |
Data average revenue per user per month. Data ARPU is derived by dividing total data revenue during the relevant period by the average number of data customers and dividing the result by the number of months in the relevant period. |
|
Data customer base |
The total number of subscribers who have consumed at least 1 MB on the Group's GPRS, 3G or 4G network in the last 30 days. |
|
Data customer penetration |
The proportion of customers using data services. Calculated by dividing the data customer base by the total customer base. |
|
Data usage per customer per month |
Calculated by dividing the total MBs consumed on the Group's network during the relevant period by the average data customer base over the same period and dividing the result by the number of months in the relevant period. |
|
Digitalisation |
We use the term digitalisation in its broadest sense to encompass both digitisation actions and processes that convert analogue information into a digital form and thereby bring customers into the digital environment, and the broader digitalisation processes of controlling, connecting and planning processes digitally; the processes that effect digital transformation of our business, and of industry, economics and society as a whole through bringing about new business models, socio-economic structures and organisational patterns.
|
|
Diluted earnings per share |
Diluted EPS is calculated by adjusting the profit for the year attributable to the shareholders and the weighted average number of shares considered for deriving basic EPS, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares actually been issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period. |
|
Earnings per share (EPS) |
EPS is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.
|
|
Foreign exchange rate movements for non-DTA operating companies and holding companies |
Foreign exchange rate movements are specific items that are non-tax deductible in a few of our operating entities, hence these hinder a like-for-like comparison of the Group's effective tax rate on a period-to-period basis and are therefore excluded when calculating the effective tax rate. |
|
Indefeasible Rights of Use (IRU) |
A standard long-term leasehold contractual agreement that confers upon the holder the exclusive right to use a portion of the capacity of a fibre route for a stated period. |
|
Information and communication technologies (ICT) |
ICT refers to all communication technologies, including the internet, wireless networks, cell phones, computers, software, middleware, videoconferencing, social networking, and other media applications and services. |
|
Interconnect usage charges (IUC) |
Interconnect usage charges are the charges paid to the telecom operator on whose network a call is terminated. |
|
Lease liability |
Lease liability represents the present value of future lease payment obligations. |
|
Leverage |
An alternative performance measure (non-GAAP). Leverage (or leverage ratio) is calculated by dividing net debt at the end of the relevant period by the EBITDA for the preceding 12 months. |
|
Market Debt |
Market debt is defined as Borrowings from Banks or Financial Institutions and debt capital market issuances in the form of Bonds. |
|
Minutes of usage |
Minutes of usage refer to the duration in minutes for which customers use the Group's network for making and receiving voice calls. It includes all incoming and outgoing call minutes, including roaming calls. |
|
Mobile services |
Mobile services are our core telecom services, mainly voice and data services, but also including revenue from tower operation services provided by the Group and excluding mobile money services. |
|
Net debt |
An alternative performance measure (non-GAAP). The Group defines net debt as borrowings including lease liabilities less cash and cash equivalents, term deposits with banks, processing costs related to borrowings and fair value hedge adjustments. |
|
Net debt to EBITDA (LTM) |
An alternative performance measure (non-GAAP) Calculated by dividing net debt as at the end of the relevant period by EBITDA for the preceding 12 months (from the end of the relevant period). This is also referred to as the leverage ratio. |
|
Network towers or 'sites' |
Physical network infrastructure comprising a base transmission system (BTS) which holds the radio transceivers (TRXs) that define a cell and coordinates the radio link protocols with the mobile device. It includes all ground-based, roof top and in-building solutions. |
|
Operating company (OpCo) |
Operating company (or OpCo) is a defined corporate business unit, providing telecoms services and mobile money services in the Group's footprint. |
|
Operating free cash flow |
An alternative performance measure (non-GAAP). Calculated by subtracting capital expenditure from EBITDA. |
|
Operating leverage |
An alternative performance measure (non-GAAP). Operating leverage is a measure of the operating efficiency of the business. It is calculated by dividing operating expenditure (excluding regulatory charges) by total revenue. |
|
Operating profit |
Operating profit is a GAAP measure of profitability. Calculated as revenue less operating expenditure (including depreciation and amortisation and operating exceptional items). |
|
Other revenue |
Other revenue includes revenues from messaging, value added services (VAS), enterprise, site sharing and handset sale revenue. |
|
Reported currency |
Our reported currency is US dollars. Accordingly, actual periodic exchange rates are used to translate the local currency financial statements of OpCos into US dollars. Under reported currency the assets and liabilities are translated into US dollars at the exchange rates prevailing at the reporting date whereas the statements of profit and loss are translated into US dollars at monthly average exchange rates. |
|
Smartphone |
A smartphone is defined as a mobile phone with an interactive touch screen that allows the user to access the internet and additional data applications, providing additional functionality to that of a basic feature phone which is used only for making voice calls and sending and receiving text messages. |
|
Smartphone penetration |
Calculated by dividing the number of smartphone devices in use by the total number of customers. |
|
Total MBs on network |
Includes total MBs consumed (uploaded and downloaded) on the network during the relevant period. |
|
EBIT |
Defined as operating profit/(loss) for the period adjusted for exceptional items. |
|
EBITDA |
An alternative performance measure (non-GAAP). Defined as operating profit before depreciation, amortisation and exceptional items. |
|
EBITDA margin |
An alternative performance measure (non-GAAP). Calculated by dividing EBITDA for the relevant period by revenue for the relevant period. |
|
Unstructured Supplementary Service Data |
Unstructured Supplementary Service Data (USSD), also known as "quick codes" or "feature codes", is a communications protocol for GSM mobile operators, similar to SMS messaging. It has a variety of uses such as WAP browsing, prepaid callback services, mobile-money services, location-based content services, menu-based information services, and for configuring phones on the network. |
|
Voice minutes of usage per customer per month |
Calculated by dividing the total number of voice minutes of usage on the Group's network during the relevant period by the average number of customers and dividing the result by the number of months in the relevant period. |
|
Weighted average number of shares |
The weighted average number of shares is calculated by multiplying the number of outstanding shares by the portion of the reporting period those shares covered, doing this for each portion and then summing the total. |
Abbreviations
|
2G |
Second-generation mobile technology |
|
3G |
Third-generation mobile technology |
|
4G |
Fourth-generation mobile technology |
|
5G |
Fifth-generation mobile technology |
|
ARPU |
Average revenue per user |
|
bn |
Billion |
|
bps |
Basis points |
|
CAGR |
Compound annual growth rate |
|
Capex |
Capital expenditure |
|
CBN |
Central Bank of Nigeria |
|
CSR |
Corporate social responsibility |
|
DTA |
Deferred Tax Asset |
|
EBIT |
Earnings before interest and tax |
|
EBITDA |
Earnings before interest, tax, depreciation and amortisation |
|
EPS |
Earnings per share |
|
FPPP |
Financial position and prospects procedures |
|
GAAP |
Generally accepted accounting principles |
|
GB |
Gigabyte |
|
HoldCo |
Holding company |
|
IAS |
International accounting standards |
|
ICT |
Information and communication technologies |
|
ICT (Hub) |
Information communication technology (Hub) IFRS |
|
IFRS |
International financial reporting standards |
|
IMF |
International monetary fund |
|
IPO |
Initial public offering |
|
KPIs |
Key performance indicators |
|
KYC |
Know your customer |
|
LTE |
Long-term evolution (4G technology) |
|
LTM |
Last 12 months |
|
m |
Million |
|
MB |
Megabyte |
|
MI |
Minority interest (non-controlling interest) |
|
NGO |
Non-governmental organisation |
|
OpCo |
Operating company |
|
P2P |
Person to person |
|
PAYG |
Pay-as-you-go |
|
QoS |
Quality of service |
|
RAN |
Radio access network |
|
SIM |
Subscriber identification module |
|
Single RAN |
Single radio access network |
|
SMS |
Short messaging service |
|
TB |
Terabyte |
|
Telecoms |
Telecommunications |
|
Unit of measure |
Unit of measure |
|
USSD |
Unstructured supplementary service data |
[1] For future sensitivity on currency devaluation, refer to the Risk section on page 20
[2] Alternative performance measures (APM) are described on page 46
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