TIDMAAF
RNS Number : 6599O
Airtel Africa PLC
02 February 2023
Airtel Africa plc
Results for nine-month period ended 31 December 2022
2 February 2023
Strong execution continues to deliver double-digit revenue and
EBITDA growth despite a challenging macro-environment.
Highlights
-- Total customer base increased to 138.5 million (up 10.1%), as
the penetration of mobile data and mobile money services continued
to rise, driving the data customer base up 13.6% and mobile money
customer base up 22.2%. Strong execution continues to deliver
double-digit revenue and EBITDA growth despite a challenging
macro-environment.
-- ARPU growth of 7.2% in constant currency, largely driven by
increased usage across voice, data, and mobile money.
-- Mobile money transaction value increased by 37.0%, to an
annualised value of almost $100bn in Q3'23.
-- Revenue in reported currency grew by 12.1%, to $3,914m with Q3'23 growth of 10.7%.
-- Revenue growth in constant currency was 17.3% (18.0% in
Q3'23) driven by double digit growth across all reporting segments.
Mobile Services revenue in Nigeria grew by 20.9%, in East Africa by
11.9% and in Francophone Africa by 11.8% (and across the Group by
15.9%, with voice revenue growth of 12.7% and data revenue up
22.3%). Mobile Money revenue grew by 29.8%, driven by 32.5% growth
in East Africa and 21.7% in Francophone Africa.
-- EBITDA was $1,916m, up 12.6% in reported currency and 17.4%
in constant currency, with an EBITDA margin of 49.0%, increasing 20
basis points in reported currency and broadly flat in constant
currency.
-- Profit after tax was $523m, up 1.7%, as EBITDA growth was
partially offset by higher foreign exchange and derivative losses
of $184m.
-- EPS before exceptional items was 10.8 cents, a reduction of
5.8% largely driven by higher foreign exchange and derivative
losses of $184m. Basic EPS increased to 12.5 cents (up by 6.3%) as
a result of deferred tax asset recognition in Kenya. EPS before
exceptional items and excluding foreign exchange and derivative
losses increased by 21.6%.
-- Capex increased 5.8% to $457m, in line with our guidance, as
we continue to invest for future growth. Additionally, we acquired
spectrum in Nigeria, DRC, Tanzania, Zambia and Kenya over the
nine-month period.
-- In July 2022, the Group prepaid $450m of outstanding external
debt at HoldCo. The remaining debt at HoldCo is now $550m, falling
due in May 2024. The leverage ratio of 1.4x was slightly higher
than the September 2022 level (1.3x), largely driven by the
acquisition of spectrum in Nigeria.
Alternative performance measures (1) GAAP measures
(Nine-month period ended) (Nine-month period ended)
------------------------------------------------------------------ -------------------------------------------------
Description Dec-22 Dec-21 Reported Constant Description Dec-22 Dec-21 Reported
currency currency currency
------------------------ -------------------
$m $m change change $m $m change
------------------------ ------- ------- ---------- ---------- ------------------- ------- ------- ----------
Revenue 3,914 3,492 12.1% 17.3% Revenue 3,914 3,492 12.1%
------------------------ ------- ------- ---------- ---------- ------------------- ------- ------- ----------
EBITDA 1,916 1,702 12.6% 17.4% Operating profit 1,318 1,146 15.1%
------------------------ ------- ------- ---------- ---------- ------------------- ------- ------- ----------
Profit after
EBITDA margin 49.0% 48.8% 20 bps 3 bps tax 523 514 1.7%
------------------------ ------- ------- ---------- ---------- ------------------- ------- ------- ----------
EPS before exceptional Basic EPS ($
items ($ cents) 10.8 11.5 (5.8%) cents) 12.5 11.7 6.3%
------------------------ ------- ------- ---------- ---------- ------------------- ------- ------- ----------
Net cash generated
Operating free from operating
cash flow 1,459 1,270 14.9% activities 1,697 1,499 13.2%
------------------------ ------- ------- ---------- ---------- ------------------- ------- ------- ----------
( (1) Alternative performance measures (APM) are described on
page 17.
Segun Ogunsanya, chief executive officer, on the trading
update:
" Providing affordable, innovative and essential services to
customers in our 14 markets with unparalleled network quality and
customer service is integral to our ambition of transforming lives
across Africa. These strong results are testament to this strategy
despite the current macro-economic and geopolitical uncertainties.
The execution of our six-pillar strategy continues to provide the
foundation for growth, driving 10% customer growth, supported by
14% growth in data customers and over 22% growth in mobile money
customers. Higher usage across voice, data and money, have
contributed to further ARPU growth of over 7%, resulting in 18%
revenue growth in the quarter as penetration across each segment
continues to increase. I am particularly excited by the performance
of our mobile money business, with annualized transaction value
reaching nearly $100bn, as we continue to drive financial inclusion
in the continent. Despite the inflationary pressures across our
markets, the strong revenue performance in the first nine months of
the year, combined with continued focus on cost optimisation,
contributed to EBITDA growth of over 17% in constant currency, with
stable EBITDA margins. Our strong operating performance, combined
with continued focus on our capital allocation priorities has
facilitated the de-risking of our balance sheet with the early
repayment of $450m HoldCo debt in July this year.
We will continue to invest in expanding our network and evolving
our service offerings to further deepen both financial and digital
inclusion across our markets. We have especially focussed on
enhancing our spectrum footprint across all our markets. Over the
last nine months we have spent almost $490m on 4G and 5G spectrum
across key markets to improve network capacity and quality,
future-proof the company for continued growth opportunities and
facilitate economic progress in all our markets.
I am particularly pleased with these results which demonstrate
the opportunities these markets offer, our ability to deliver
against these opportunities and the contribution we make to local
communities and economies across our footprint. For the remainder
of the financial year. we continue to anticipate sustained growth
in the business with continued EBITDA margin resilience."
Airtel Africa plc ("Airtel Africa" or "Group") results for
nine-month period ended 31 December 2022 are unaudited and in the
opinion of management, include all adjustments necessary for the
fair presentation of the results of the same period. The financial
information in this press release has been drawn from interim
financial statements prepared based on International Accounting
Standard 34 (IAS 34) issued by the International Accounting
Standards Board (IASB) approved for use in the United Kingdom
("UK") by the UK Accounting Standards Endorsement Board (UKEB) and
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 2022 except to the extent required/ prescribed by IAS 34.
This report should be read in conjunction with audited annual
consolidated financial statements and related notes for the year
ended 31 March 2022. Comparative annual information has been drawn
based on Airtel Africa plc's Audited Consolidated Financial
Statements for the year ended 31 March 2022; with quarterly and
nine-month period information drawn from the unaudited IAS 34
financials of the respective periods. All comparatives and
references to the 'prior period' or 'previous period' in this
report are for the reported metrics for the quarterly and
nine-month period ended 31 December 2021 unless otherwise
stated.
About Airtel Africa
Airtel Africa is a leading provider of telecommunications and
mobile money services, with a presence in 14 countries in Africa,
primarily in East Africa and Central and West Africa.
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
Airtel Africa - Investor Relations
Pier Falcione +44 7446 858 280
Alastair Jones +44 7464 830 011
Investor.relations@africa.airtel.com +44 207 493 9315
Hudson Sandler
Nick Lyon
Emily Dillon
airtelafrica@hudsonsandler.com +44 207 796 4133
Conference call
Management will host an analyst and investor conference call at
12:00pm UK time (GMT), on Thursday 2 February 2023, including a
Question-and-Answer session.
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
Description Unit Nine-month period ended Quarter ended
of measure
----------------- ------------------------------------------ ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
% % % %
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit and loss
summary
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Revenue (1) $m 3,914 3,492 12.1% 17.3% 1,350 1,219 10.7% 18.0%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue $m 1,872 1,747 7.2% 12.7% 646 606 6.5% 13.9%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 1,318 1,127 16.9% 22.3% 454 395 15.0% 22.7%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
revenue
(2) $m 515 406 26.9% 29.8% 183 148 24.2% 30.3%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Other revenue $m 321 306 5.1% 10.2% 105 105 0.5% 6.8%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Expenses $m (2,007) (1,797) 11.7% 17.2% (691) (616) 12.1% 19.5%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
EBITDA (3) $m 1,916 1,702 12.6% 17.4% 661 605 9.3% 16.4%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
(60) (65)
EBITDA margin % 49.0% 48.8% 20 bps 3 bps 49.0% 49.6% bps bps
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Depreciation and
amortisation $m (598) (556) 7.6% 13.0% (215) (190) 12.9% 20.4%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating
exceptional
items $m - - 0.0% 0.0% - - 0.0% 0.0%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating profit $m 1,318 1,146 15.1% 19.5% 446 414 7.8% 14.6%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Net finance
costs
(4) $m (519) (291) 78.0% (161) (122) 32.2%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Non-operating
exceptional
items(5) $m - 9 (100.0%) - 5 (100.0%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit before
tax (6) $m 801 864 (7.3%) 285 297 (4.2%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Tax $m (340) (350) (2.9%) (112) (117) (4.3%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Tax -
exceptional
items (7) $m 62 - 0.0% 21 - 0.0%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Total tax charge $m (278) (350) (20.6%) (92) (117) (22.0%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit after
tax $m 523 514 1.7% 193 180 7.5%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Non-controlling
interest $m (55) (74) (25.1%) (21) (25) (12.4%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit
attributable
to owners of
the
company -
before
exceptional
items $m 406 431 (5.9%) 151 150 0.8%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit
attributable
to owners of
the
company $m 468 440 6.2% 172 155 10.7%
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
EPS - before
exceptional
items cents 10.8 11.5 (5.8%) 4.0 4.0 0.9%
================= ============= ======== ======== ========== ========== ======= ======= ========== ==========
Basic EPS cents 12.5 11.7 6.3% 4.6 4.1 10.8%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Weighted average
no of shares million 3,752 3,755 (0.1%) 3,750 3,754 (0.1%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 457 432 5.8% 147 187 (21.7%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating free
cash flow $m 1,459 1,270 14.9% 514 418 23.2%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Net cash
generated
from operating
activities $m 1,697 1,499 13.2% 689 577 19.3%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Net debt $m 3,620 3,050 3,620 3,050
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Leverage (net
debt to EBITDA) times 1.4x 1.4x 1.4x 1.4x
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Return on
capital 225 283
employed % 23.3% 21.0% bps 23.8% 20.9% bps
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 3.3 3.2 2.5% 7.2% 3.3 3.3 0.6% 7.2%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Total customer
base million 138.5 125.8 10.1% 138.5 125.8 10.1%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 51.3 45.1 13.6% 51.3 45.1 13.6%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
customer
base million 31.4 25.7 22.2% 31.4 25.7 22.2%
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
(1) Revenue includes inter-segment eliminations of $112m for
nine-month period ended 31 December 2022 and $94m for the prior
period.
(2) Mobile money revenue post inter-segment eliminations with
mobile services was $403m for nine-month period ended 31 December
2022, and $312m for the prior period.
(3) EBITDA includes other income of $9m for nine-month period
ended 31 December 2022, and $9m for the prior period.
(4) Net finance costs of $519m, has increased $228m from the
prior period largely due to higher foreign exchange and derivative
losses of $184m mainly comprised of a $40m loss on derivatives and
higher foreign exchange losses arose from the restatement of
balance sheet liabilities (a loss of $70m on devaluation of the
Nigerian Naira, and other devaluation losses of $53m mainly arising
from the Malawian Kwacha, Ugandan and Kenyan shilling).
(5) Non-operating exceptional items in the previous period
include a profit of $9m from the sale of towers in Rwanda and
Madagascar.
(6) Profit before tax in nine-month period ended 31 December
2022 include a $2m gain on share of profit from associates.
(7) Tax exceptional items in the nine-month period ended 31
December 2022 reflect the initial recognition of a deferred tax
credit of $62m in Kenya.
Financial review for nine-month period ended 31 December
2022
Reported currency revenue grew by 12.1%, with constant currency
revenue growth of 17.3% partially offset by currency devaluation.
Revenue growth was impacted by the effect of some voice customers
being barred in Nigeria and the loss of tower sharing revenues
following the sale of towers in Tanzania, Madagascar and Malawi in
H2'22. Excluding these, the growth would have been around 20.6% in
constant currency. Total revenue for mobile services and mobile
money services combined grew in Nigeria by 20.9%, East Africa by
16.1% and Francophone Africa by 12.7% over the period.
Revenue growth was recorded across all reporting segments, with
mobile services revenue for the Group up 15.9% reflecting Nigeria
up 20.9%, East Africa up 11.9% and Francophone Africa up 11.8%.
Voice revenues saw double digit revenue growth of 12.7%, while data
revenues grew 22.3%. Mobile money revenue grew by 29.8% in constant
currency, driven by 32.5% growth in East Africa and 21.7% growth in
Francophone Africa.
Net finance costs increased by $228m largely due to higher
foreign exchange and derivative losses of $184m mainly comprised of
a $40m loss on derivatives and higher foreign exchange losses arose
from the restatement of balance sheet liabilities (a loss of $70m
on devaluation of the Nigerian Naira, and other devaluation losses
of $53m mainly arising from the Malawian Kwacha, Ugandan and Kenyan
shilling).
Total tax charges were lower by $72m mainly due to the initial
recognition of a deferred tax credit of $62m in Kenya.
Non-controlling interests was down $19m due to the buy-back of
minorities in Nigeria and lower minority allocation charges in
Tanzania, partially off-set by the increase in Airtel Money
minority shareholdings.
EPS before exceptional items was 10.8 cents, a reduction of 5.8%
largely as a result of higher foreign exchange and derivative
losses of $184m. Basic EPS increased to 12.5 cents (up by 6.3%) as
a result of deferred tax asset recognition in Kenya. Excluding
Foreign exchange and derivative losses EPS before exceptional items
would have been up by 21.6%.
Leverage at 1.4x, remained largely stable over the period. Our
balance sheet has also been further de-risked by continued
localisation of our debt into the OpCos and continued debt
reduction in HoldCo, following the $450m HoldCo bond prepayment in
July 2022. The 1.4x leverage ratio increased slightly from 1.3x in
September 2022 as a result of the acquisition of spectrum in
Nigeria during the period.
In terms of outlook, long-term opportunities for us remain
attractive. Whilst mindful of currency devaluation and repatriation
risks, we continue to work actively to mitigate all our material
risks and deliver value for all our stakeholders.
GAAP measures
Revenue
Revenue was $3,914m, growing 12.1% in reported currency and
17.3% in constant currency. The differential in growth rates was
due to an average currency devaluation between the periods, mainly
in the Central African franc (14.1%) which is largely pegged to the
Euro, the Nigerian naira (4.5%), the Kenyan shilling (8.8%), the
Ugandan shilling (5.0%) and the Malawian kwacha (21.2%), in turn
partially offset by appreciation in the Zambian kwacha (14.5%). The
revenue growth of 17.3% in constant currency growth was driven by
both customer base growth of 10.1% and ARPU growth of 7.2%.
Mobile services revenue grew by 15.9% in constant currency
supported by growth across the regions, with Nigeria growing 20.9%,
East Africa by 11.9% and Francophone Africa by 11.8%. Voice revenue
grew by 12.7% and data revenue was up 22.3%. Mobile money revenue
growth of 29.8% was driven by both East Africa and Francophone
Africa, of 32.5% and 21.7% respectively.
Though strong, revenue growth was impacted by the effect of some
voice customers being barred in Nigeria and the loss of tower
sharing revenues following the sales of towers in Tanzania,
Madagascar and Malawi in the prior period. A total of 13.6 million
customers were originally barred, out of which 6.2 million
customers (46%) have subsequently submitted their NINs and 3.2
million customers (23%) have been fully verified and unbarred. We
estimate that this resulted in the loss of approximately $87m of
revenues in nine-month period. Other revenues were impacted by
c.$21m of tower sharing revenues lost through associated tower
sales in the second half of the previous year. Excluding these the
growth would have been around 20.6% in constant currency terms.
Operating profit
Operating profit of $1,318m, grew by 15.1% as a result of strong
revenue growth and continued improvements in operating efficiency
in East Africa and Francophone Africa.
Net finance costs
Net finance costs were $519m, an increase of $228m largely due
to higher foreign exchange losses of $144m and higher derivative
losses of $40m. The higher foreign exchange losses arose from the
restatement of balance sheet liabilities (including current and
non-current borrowings and finance lease obligations) following
certain currency devaluations across most of our OpCos, including a
loss of $70m on devaluation of the Nigerian naira, and other
devaluation losses of $53m mainly arising from the Malawian kwacha,
Ugandan shilling and Kenyan shilling. Interest costs were $262m, an
increase of $31m, largely driven by higher lease liabilities.
Interest costs on market debt was broadly flat.
The Group's effective interest rate increased to 7.2% compared
to 5.6% in the prior period, largely driven by an increase in base
rates and higher proportion of debt in OPCOs.
Taxation
Total tax charges were lower by $72m mainly due to the initial
recognition of a deferred tax credit of $62m in Kenya. Excluding
this exceptional item, tax was lower by $10m mainly due to lower
profit before tax impacted by higher foreign exchange and
derivative losses.
Profit after tax
Profit after tax was up 1.7% to $523m. The slowdown in growth
was due to higher foreign exchange and derivative losses of $184m.
Profit after tax excluding foreign exchange and derivative losses
was up by 24.7%.
Basic EPS
Basic EPS was 12.5 cents, up by 6.3% from 11.7 cents in prior
period . This increase was mainly due to higher operating profits
and the recognition of a deferred tax credit of $62m in Kenya,
which more than offset higher foreign exchange and derivative
losses of $184m.
Net cash generated from operating activities
Net cash generated from operating activities was $1,697m, up by
13.2% largely driven by higher operating profit which was partially
offset by higher tax payments on the increased profits and
withholding tax on dividends by subsidiaries. While in some markets
we face instances of shortage of foreign currency within the local
monetary system, we benefit from a broad geographical
diversification which enables access to liquidity, with limited
impact to the Group requirements.
Alternative performance measures [1]
EBITDA
EBITDA was $1,916m, up by 12.6% in reported currency and 17.4%
in constant currency, driven by strong revenue growth. EBITDA
margin was at 49.0%, an improvement of 20 basis points in reported
currency and 3 basis points in constant currency. We continue to
work towards mitigating the inflationary cost pressures through
various cost initiatives.
Foreign exchange had an adverse impact of $174m on revenue, and
$79m on EBITDA, as a result of currency devaluations. Currency
devaluations between the periods is mainly in the Central African
franc (14.1%), the Nigerian naira (4.5%), the Kenyan shilling
(8.8%), the Ugandan shilling (5.0%) and the Malawian kwacha
(21.2%), in turn partially offset by appreciation in the Zambian
kwacha (14.5%).
With respect to currency devaluation sensitivity, on a 12-month
basis, a 1% currency devaluation across all currencies in our OpCos
would have a negative impact of $49m on revenues, $29m on EBITDA
and $25m on finance costs (excluding derivatives). Our largest
exposure is to the Nigerian naira, for which a 1% devaluation would
have a negative impact of $21m on revenues, $11m on EBITDA and $8m
on finance costs (excluding derivatives).
Refer to the Risk Factors section for detailed disclosure on the
currency devaluation risk posed to the Group.
Effective tax rate
The effective tax rate was 38.8%, compared to 39.6% in the prior
period, largely due to profit mix changes amongst the OpCos. The
effective tax rate is higher than the weighted average statutory
corporate tax rate of approximately 33%, largely due to the profit
mix between various OpCos and withholding taxes on dividends by
subsidiaries.
Exceptional items
Non-operating exceptional items in the previous period relates
to a gain of $9m from the profit on the sale of towers in Rwanda
and Madagascar. The tax exceptional item in current period related
to the initial recognition of a deferred tax credit of $62m in
Kenya.
EPS before exceptional items
EPS before exceptional items was 10.8 cents, a reduction of 5.8%
largely as a result of higher foreign exchange and derivative
losses of $184m. Excluding foreign exchange and derivative losses,
the EPS before exceptional item was 15.8 cents, an increase of
21.6%.
Operating free cash flow
Operating free cash flow was $1,459m, up by 14.9%, as higher
EBITDA more than offset increased capital expenditure. Capital
expenditure during the period was higher by $25m related to planned
network expansion and investment in PSB opportunity in Nigeria.
Leverage
Leverage at 1.4x net debt/EBITDA, was largely stable from the
prior period. Our balance sheet has also been further de-risked by
continued localisation of our debt into the OpCos and continued
debt reduction in HoldCo, following the $450m HoldCo bond
prepayment in July 2022. Leverage has increased marginally from
1.3x in September 2022 primarily due to the acquisition of Nigerian
spectrum in December 2022 ($316.7m).
Other significant updates
IFC loan facility
On 6 December 2022, we announced the signing of a new $194m
facility with International Finance Corporation ('IFC'), a sister
organisation of the World Bank and a member of the World Bank
Group. The new financing facility is in line with Airtel Africa's
strategy to increase debt within its operating companies.
The facility has a tenor of eight years, it is largely in local
currency, and will be used to support Airtel Africa's operations
and investments in Democratic Republic of Congo, Kenya, Madagascar,
Niger, Republic of Congo and Zambia, providing a more diversified
access to local funding.
As part of IFC's loan facility, Airtel Africa has committed to
comply with the applicable requirements of IFC Performance
Standards on Social and Environmental Sustainability and has put in
place a dedicated Environmental and Social Action plan. This will
further underpin the Group's commitment to transforming lives
across the communities in which Airtel operates and provide clarity
on how the Group can help address inequality and support economic
growth in these communities.
Nigeria 4G and 5G Spectrum Acquisition
On 9 January 2023, we announced that, Airtel Networks Limited
('Airtel Nigeria'), had purchased 100 MHz of spectrum in the
3500MHz band and 2x5MHz of 2600MHz from the Nigerian Communications
Commission (NCC) for a gross consideration of $316.7m, paid in
local currency. This additional spectrum will support our
investments in network expansion for both mobile data and fixed
wireless home broadband capability, including 5G rollout, providing
significant capacity to accommodate our continued strong data
growth in the country and exceptional customer experience.
Airtel Nigeria is Airtel Africa's largest market, with
significant growth potential. The company led the industry in
providing affordable 4G services across the country following the
deployment of a fully modernised network which facilitated a 4-fold
increase in data traffic over the last three years. The penetration
of data customers in Nigeria remains low, providing significant
opportunity for future growth.
The acquisition of 5G spectrum will underpin our growth strategy
by enabling the launch of higher speed connectivity to enhance
customer service and accelerate digitalisation for consumers,
enterprises and the public sector. The key benefits of 5G will
include higher speeds, lower latency, significant network capacity
as well as an improved user experience. Furthermore, the deployment
of 5G will accelerate the availability and efficiency of fixed
wireless access products across the country, contributing towards
Airtel Nigeria's progress in meeting the National Broadband Plan
targets. The acquisition of 2600MHz spectrum will complement our
already strong spectrum position in the market to enhance network
capacity and future-proof our growth opportunity.
Other spectrum acquisitions
During the year, we acquired the following additional spectrum
across our OpCos:
In October 2022, Airtel Tanzania plc purchased 110 MHz spectrum
spread across the 2600 MHz (2 blocks of 2x15MHz) and 3500 MHz bands
from the Tanzania Communications Regulatory Authority (TCRA) for a
gross consideration of $60m.
Airtel Zambia purchased 60 MHz of additional spectrum in October
2022 spread across the 800 MHz and 2600 MHz bands from the Zambia
Information and Communications Technology Authority (ZICTA), for a
gross consideration of $29m, payable in local currency. Further, we
acquired an additional 40 MHz of spectrum in the 2600 band for $12m
in November 2022.
In July 2022, Airtel Kenya Networks Limited purchased 60 MHz of
additional spectrum in the 2600 MHz band from the Communications
Authority of Kenya, for a gross consideration of $40m, for a period
of 15 years.
Airtel DRC purchased 58 MHz of additional spectrum, spread
across 900, 1800, 2100 and 2600 MHz bands, for a gross
consideration of $42m in June 2022. The licence for paired spectrum
in the 2100 band comes up for renewal in September 2032. All the
other licences continue until July 2036.
Launch of inaugural Sustainability Report
The publication of Airtel Africa's inaugural Sustainability
Report on the 27(th) October 2022 follows the launch of the Group's
sustainability strategy in October 2021. The report reflects the
Group's firm commitment to sustainability and details the business'
progress against the goals outlined in the sustainability strategy.
The report adheres to international best-practice ESG Reporting
standards, including the Global Reporting Initiative (GRI)
Standards and TCFD recommendations.
The publication of the report constitutes an important step
forward in enhancing the non-financial information transparency of
the Group. The report provides accurate and verified baselines for
scope 1, 2 and 3 emissions and total energy consumption.
In October 2021, the Group committed to publishing a 'pathway to
carbon neutrality' report, outlining the Group's strategy and
timeline for achieving net zero greenhouse gas emissions targets,
ahead of the publication of its first sustainability report. While
significant progress has been made on this important project, due
to its ambitious scale, additional time is required to
comprehensively incorporate the many variables affecting our
decarbonisation strategy in all 14 markets, and to consult with
stakeholders. The Group is now confident of publishing a robust
pathway to carbon neutrality by the end of the 2023 financial
year.
Uganda listing obligation
Under Article 16 of Uganda's National Telecom Operator ('NTO')
licence, Airtel Uganda limited is obliged to comply with the sector
policy, regulations and guidelines requiring the listing of part of
its shares on the Uganda Stock Exchange. The current Uganda
Communications (Fees & Fines) (Amendment) Regulations 2020,
creates a public listing obligation for all NTO licensees, and
specifies that 20% of the shares of the operator must be listed
within two years of the date of the effective date of the licence.
This imposed a listing requirement by 15 December 2022 on Airtel
Uganda. In April 2022, the company applied for an extension of time
to list the shares, which was granted by the Regulator thereby
extending the deadline to 16 December 2023. Preparatory steps are
underway by Airtel Uganda and its advisors in order to comply with
this deadline.
NIN - SIM linkage implementation in Nigeria
Following a directive issued by the Nigerian Communications
Commission (NCC) on 7 December 2020 to all Nigerian telecom
operators, all our customers were required to provide their valid
National Identification Numbers (NINs) to update SIM registration
records, with a final deadline of 31 March 2022.
In April 2022, the voice services for 13.6 million customers
were barred due to non-submission of NIN information. As of
December 2022, 6.2 million customers (46%) have subsequently
submitted their NINs and 3.2 million customers (23%) have been
fully verified and unbarred. Revenue growth for the first
nine-months of the year was impacted by the effect of barring
outgoing voice calls in Nigeria for those customers who had not
submitted their NINs. We estimate that this resulted in the loss of
approximately $87m of revenues in nine-month period, providing a
drag on revenue growth of almost 2.5% at Group level (impact of
6.4% in Nigeria).
We continue to work closely with the regulator and impacted
customers to help them to comply with the registration
requirements, making every effort to minimise disruption and ensure
affected customers can continue to benefit from full-service
connectivity as soon as possible; in line with our aim to drive
increased connectivity and digital inclusion across Nigeria.
Nigeria mobile money operationalisation
On 29 April 2022, we announced that the Central Bank of Nigeria
('CBN') had confirmed that Smartcash Payment Service Bank limited
('Smartcash'), had received final approval for a full Payment
Service Bank ('PSB') licence, affording the Group the opportunity
to deliver a full suite of mobile money services in Nigeria. This
news followed our announcement of 26 April that the CBN had also
awarded our subsidiary, Airtel Mobile Commerce Nigeria Ltd, with a
full super-agent licence, allowing the business to create an agency
network that can service the customers of licenced Nigerian banks,
payment service banks and licenced mobile money operators in
Nigeria.
During the period we launched Smartcash, our Nigerian mobile
money offering, initially in Lagos, before rolling out further
across the country. One of our key commitments is to guarantee data
privacy and security controls across the business to build trust
and confidence in the brand. In that light, we have focussed our
investments on the IT infrastructure and business systems and
processes to ensure we meet this commitment. This investment,
combined with our continued focus on the expansion of the
distribution network, will drive increased access to financial
services for underserved communities in Nigeria.
$450m early bond redemption
On 8 July 2022 the Group announced the settlement of a cash
tender offer, redeeming $450m of the $1 billion of 5.35% guaranteed
senior notes due 2024 ('Notes'). An aggregate principal amount of
$450m of Notes was accepted for purchase for a total of $463m. All
Notes accepted for purchase were cancelled ahead of their maturity
in May 2024. This early redemption was made out of the Group's cash
reserves and is in line with our strategy of reducing external
foreign currency debt at a Group level.
First sustainability-linked loan facility
On 10 August 2022, the group announced the signing of a $125m
revolving credit facility with Citi through its branch
offices/subsidiaries in sub-Saharan Africa. This facility is in
line with our strategy to raise debt in our local operating
companies and will include both local currency and US dollar
denominated debt. The facility has a tenor up to September 2024 and
will be used to support Airtel Africa's operations and investments
in four of its subsidiaries. The facility provides potential
interest rate savings in exchange for achieving social impact
milestones relating to digital inclusion and gender diversity, with
a focus on rural areas and women, and aligning with the Group's
sustainability strategy , launched in October 2021. The facility
further strengthens the Group's commitment to transforming lives
across the communities in which we operate.
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 .
Financial review for nine-month period ended 31 December
2022
Nigeria - Mobile services
Description Unit Nine-month period ended Quarter ended
of
measure
---------------------- ---------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised statement
of
Operations
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,585 1,370 15.6% 20.9% 545 476 14.6% 23.1%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue
(1) $m 791 717 10.3% 15.4% 279 246 13.6% 22.1%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 653 539 21.1% 26.6% 222 189 17.6% 26.3%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other revenue
(1) $m 141 115 22.6% 27.9% 43 41 6.5% 14.3%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 815 758 7.5% 12.4% 284 266 6.8% 14.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(388) (385) (379) (377)
EBITDA margin % 51.4% 55.3% bps bps 52.1% 55.9% bps bps
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
and amortisation $m (248) (196) 26.3% 32.2% (92) (68) 34.3% 44.4%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating exceptional
items $m - - 0.0% 0.0% - - 0.0% 0.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating profit $m 542 562 (3.5%) 0.8% 184 198 (6.9%) 0.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 167 182 (8.2%) (8.2%) 34 78 (56.3%) (56.3%)
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating free
cash flow $m 648 576 12.5% 19.0% 250 188 32.9% 44.3%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Total customer
base million 47.8 42.4 13.0% 47.8 42.4 13.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 22.0 19.0 16.0% 22.0 19.0 16.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile services
ARPU $ 3.8 3.7 2.4% 7.0% 3.9 3.9 (0.2%) 7.2%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) Voice revenue includes inter-segment revenue of $1m and
other revenue includes inter-segment revenue of $2m in nine-month
period ended 31 December 2022. Excluding inter-segment revenue,
voice revenue was $790m and other revenue was $139m in nine-month
period ended 31 December 2022.
In reported currency, Nigeria revenue grew by 15.6% to $1,585m
and 20.9% in constant currency. Strong growth in both voice and
data contributed to revenue growth, driven mainly by overall
customer base growth of 13.0% and data customer base growth of
16.0%. ARPU grew by 7.0%, largely driven by higher data and other
revenue. Q3'23 revenue growth accelerated to 23.1% from 21.0% in
Q2'23.
Voice revenue increased by 15.4% in constant currency, largely
driven by customer base growth of 13.0% supported by voice ARPU
growth of 2.2%. The barring of outgoing calls for customers who had
not submitted their NINs had an adverse impact on voice revenue. A
total of 13.6 million customers were originally barred, out of
which 6.2 million customers (46%) have subsequently submitted their
NINs and 3.2 million customers (23%) have been fully verified and
unbarred. We estimate that this resulted in the loss of
approximately $87m of revenues in nine-month period ended 31
December 2022, providing a drag on revenue growth of 6.4% in
Nigeria.
Data revenue increased by 26.6% in constant currency, driven by
both data customer base growth of 16.0% and data ARPU growth of
9.2%. Over the last year, we have enhanced our 4G network with
ample data network capacity to provide high speed data to our
customers with almost 100% of our sites now on 4G and data capacity
increase of 28%. This has contributed to 4G data customer growth of
20.7%. Data usage per customer increased by 25.6% facilitating
continued data ARPU growth. Data usage per customer reached 5 GB
per customer per month from 4 GB per customer per month in the
previous period. In Q3'23, 4G data usage per customer increased to
9.0 GB per month (up by 53%) from 5.9 GB per customer per month in
prior period. 4G data usage now contributes to 81.1% of total data
usage on our network.
Other revenues grew by 27.9% in constant currency, with the main
contribution coming from the growth in value added services
revenue, led by airtime credit services.
Nigeria Mobile services EBITDA was $815m, up by 12.4% in
constant currency. The EBITDA margin declined to 51.4% from 55.3%
due to an increase in operating costs arising from inflationary
pressure, particularly related to the fuel costs. The Q3'23 EBITDA
margin of 52.1% has increased from 49.5% in Q2'23 EBITDA largely as
a result of operating leverage from higher revenue growth and
one-time benefits of about 100bps in the quarter.
Operating free cash flow was $648m, up by 19.0%, due to the
expansion of EBITDA and lower capex in Q3'23. Q3'23 capex was lower
than prior period largely due to phasing of materials received with
no impact on full year capex expectations.
East Africa - Mobile services (1)
Description Unit Nine-month period ended Quarter ended
of
measure
---------------------- ---------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised statement
of
operations
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,129 1,046 8.0% 11.9% 388 372 4.5% 10.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue $m 632 586 7.8% 11.9% 215 210 2.5% 8.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 397 339 17.3% 20.8% 140 121 15.3% 21.9%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other revenue
(2) $m 101 120 (16.3%) (13.2%) 34 41 (16.9%) (11.4%)
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 561 501 12.0% 15.9% 201 184 9.1% 16.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
178 173 219 230
EBITDA margin % 49.7% 47.9% bps bps 51.7% 49.5% bps bps
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
and amortisation $m (190) (172) 10.2% 13.9% (67) (59) 11.9% 17.9%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating exceptional
items $m - - 0.0% 0.0% - - 0.0% 0.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating profit $m 344 312 10.3% 14.3% 125 120 4.8% 11.9%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 159 150 6.2% 6.2% 69 73 (5.8%) (5.8%)
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating free
cash flow $m 402 351 14.4% 19.9% 132 111 18.9% 30.7%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Total customer
base million 62.4 57.4 8.8% 62.4 57.4 8.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 21.2 18.6 14.1% 21.2 18.6 14.1%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile services
ARPU $ 2.1 2.1 0.8% 4.5% 2.1 2.2 (3.1%) 2.8%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) The East Africa business region includes Kenya, Malawi,
Rwanda, Tanzania, Uganda and Zambia.
(2) Voice revenue includes inter-segment revenue of $1m and
other revenue includes inter-segment revenue of $9m in nine-month
period ended 31 December 2022. Excluding inter-segment revenue,
voice revenue was $631m and other revenue was $92m in nine-month
period ended 31 December 2022.
In East Africa, mobile services revenue grew by 8.0% in reported
currency, and 11.9% in constant currency. The differential in
growth rates was due to a devaluation of the Kenyan shilling,
Ugandan shilling and Malawian kwacha, partially offset by an
appreciation in the Zambian kwacha. Current year was impacted by
the loss of tower sharing revenues (c.$20m) following the sales of
towers in Tanzania and Malawi which is reflected in the 13.2%
decline in other revenues over the period. Revenue growth,
excluding the site sharing revenue impact of tower sales, was 14.0%
for the period.
Voice revenue grew by 11.9% in constant currency, driven by both
customer base growth of 8.8% and voice ARPU growth of 4.5%. The
customer base growth of 8.8% was supported by the expansion of our
network, enhanced coverage, and distribution infrastructure. Site
count increased by 12.8% and activating outlets increased by 18.9%.
Voice usage per customer increased by 10.2% to 385 minutes per
customer per month resulted in voice ARPU growth of 4.5%. Total
minutes on the network increased by 18.0% to 207.8 billion
minutes.
Data revenue grew by 20.8% in constant currency, largely driven
by both data customer base growth of 14.1% and data ARPU growth of
9.4%. The expansion of our 4G network and ample data network
capacity helped us to grow both the data customer base and data
usage. 89.8% of our total sites in East Africa are on 4G as
compared with 84.1% in prior period. 44.5% of our total data
customer base is on 4G which contributes to 69.2% of total data
usage (in Q3'23). Data usage per customer increased by 29.6%
resulted in data ARPU growth of 9.4%, data usage per customer
reached 4.1 GB per customer per month from 3.2 GB per customer per
month. In Q3'23, 4G data usage per customer was 6.6 GB per month
from 5.6 GB per customer per month (up by 16.6% from the prior
period).
Mobile services EBITDA increased to $561m, up by 15.9% in
constant currency. EBITDA margin improved to 49.7%, an improvement
of 173 basis points in constant currency, as a result of revenue
growth and improved operating efficiencies.
Operating free cash flow was $402m, up by 19.9%, largely due to
expansion of EBITDA partially offset by slightly higher capex.
Francophone Africa - Mobile services (1)
Description Unit Nine-month period ended Quarter ended
of
measure
---------------------- ---------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised statement
of
operations
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 807 776 4.1% 11.8% 275 263 4.5% 11.2%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue
(2) $m 453 446 1.5% 9.4% 154 152 0.8% 7.6%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 268 249 7.4% 15.0% 92 84 9.0% 15.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other revenue
(2) $m 86 79 9.6% 15.1% 29 26 11.9% 16.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 352 317 11.3% 18.7% 112 109 2.6% 8.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
281 256 (77) (89)
EBITDA margin % 43.6% 40.8% bps bps 40.6% 41.4% bps bps
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
and amortisation $m (143) (153) (6.6%) 0.9% (50) (50) (0.1%) 6.9%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating exceptional
items $m - - 0.0% 0.0% - - 0.0% 0.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating profit $m 184 140 31.5% 38.4% 53 51 5.0% 10.2%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 94 73 28.9% 28.9% 36 25 43.0% 43.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating free
cash flow $m 258 244 5.9% 15.6% 76 84 (9.7%) (1.6%)
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Total customer
base million 28.3 26.0 8.5% 28.3 26.0 8.5%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 8.1 7.6 6.4% 8.1 7.6 6.4%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile services
ARPU $ 3.3 3.5 (4.4%) 2.7% 3.3 3.4 (2.6%) 3.6%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(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 and
other revenue includes inter-segment revenue of $2m in nine-month
period ended 31 December 2022. Excluding inter-segment revenue,
voice revenue was $451m and other revenue was $84m in nine-month
period ended 31 December 2022.
In Francophone Africa, mobile services revenue grew by 4.1% in
reported currency and 11.8% in constant currency. The differential
in growth rates was driven primarily by the 14.1% devaluation of
the Central African franc.
Voice revenue increased by 9.4% in constant currency, mainly
driven by customer base growth of 8.5%. With continued investments
in network expansion and distribution infrastructure, total sites
increased by 10.6% and activating outlets increased by 17%
(exclusive outlets increased by 31%). Voice usage per customer grew
by 10.6% to 149 minutes per customer per month thereby resulting in
an 20.4% growth in total voice minutes on our network.
Data revenue increased by 15.0% in constant currency, driven by
both customer base growth of 6.4% and data ARPU growth of 7.0%. We
continue to expand our 4G network, with 69.1% of our sites in
Francophone Africa on 4G (up from 63.8% in prior period) and data
capacity on our network increased by 43.4%. Total data usage
increased by 57.1% primarily driven by increase in data usage per
customer by 46.1% to 3.4 GB per customer per month compared with
2.3 GB in the prior period. As of Q3'23, 54% of the data customer
base is on 4G contributing to 70.8% of total data usage. 4G data
usage per customer increased to 5.8 GB per month (up by 30.8%)
compared with 4.4 GB per customer per month.
Mobile services EBITDA at $352m, increased by 18.7% in constant
currency. EBITDA margin improved to 43.6%, an improvement of 256
basis points in constant currency. However, the current year had a
one-time opex benefit of approximately $19m in the first half and a
normalized EBITDA margin of 41.3%, an improvement of 30 basis
points in constant currency.
Operating free cash flow was $258m, increased by 15.6%, driven
by the expansion in EBITDA and partially offset by higher
capex.
Mobile services
Description Unit Nine-month period ended Quarter ended
of measure
------------------- ------------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised
statement
of operations
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue (1) $m 3,515 3,183 10.5% 15.9% 1,207 1,107 9.0% 16.4%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 1,872 1,747 7.2% 12.7% 646 606 6.5% 13.9%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 1,318 1,127 16.9% 22.3% 454 395 15.0% 22.7%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 325 309 5.3% 10.4% 106 106 0.7% 7.1%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 1,728 1,576 9.6% 14.7% 597 559 6.7% 14.0%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(36) (50) (106) (105)
EBITDA Margin % 49.1% 49.5% bps bps 49.4% 50.5% bps bps
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
& Amortization $m (581) (521) 11.5% 17.1% (209) (178) 17.1% 25.0%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
Exceptional
Items $m - - 0.0% 0.0% - - 0% 0%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Profit $m 1,070 1,015 5.4% 10.0% 362 368 (1.5%) 5.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 420 405 3.9% 3.9% 139 176 (21.1%) (21.1%)
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Free
Cash Flow $m 1,308 1,171 11.7% 18.5% 458 383 19.5% 30.4%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile voice
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Customer base million 138.5 125.8 10.1% 138.5 125.8 10.1%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice ARPU $ 1.6 1.6 (2.0%) 3.0% 1.6 1.6 (3.2%) 3.6%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile data
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 51.3 45.1 13.6% 51.3 45.1 13.6%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data ARPU $ 3.0 2.9 4.2% 9.0% 3.0 3.0 2.6% 9.5%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) Mobile service revenue after inter-segment eliminations was
$3,511m in nine-month period ended 31 December 2022 and $3,179m in
the prior period.
Overall mobile services revenue increased to $3,515m, up by
10.5% in reported currency, while growth in constant currency was
15.9%. Revenue growth was recorded across all regions and key
services: Nigeria up by 20.9%, East Africa by 11.9% and Francophone
Africa by 11.8%.
Voice revenue grew by 12.7% in constant currency, driven by both
customer base growth of 10.1% and voice ARPU growth of 3.0%.
Revenue growth for the first half of the year was slightly impacted
by the effect of barring outgoing calls in Nigeria for those
customers who had not submitted their National Identity Numbers
('NINs'). We continue investing in network expansion to expand our
reach along with the expansion of distribution infrastructure to
drive customer base growth.
Our continued expansion of network and distribution
infrastructure helped drive customer additions. Voice usage per
customer increased by 6.3% resulted in Voice ARPU growth of 3.0%.
Voice usage per customer increased to 272 minutes per customer per
month from 256 minutes per customer per month and total minutes on
the network increased by 16.3%. Q3'23 voice revenue growth
accelerated to 13.9% from 12.7% in Q2'23, with voice ARPU growth of
3.6%.
Data revenue grew by 22.3% in constant currency, driven by
strong growth in customer base of 13.6% and data ARPU growth of
9.0%. Revenue growth was recorded across all regions: Nigeria grew
by 26.6%, East Africa by 20.8% and Francophone Africa by 15.0%.
Data customer base growth of 13.6% resulted from the further
expansion of our 4G network with 90% of total sites on 4G, up from
82.8% (almost 100% of sites in 5 OPCOs are now on 4G). Total data
customer base reached 51.3 million with 4G customer base of 23.7
million, contributing to 46.3% of the total data customer base.
Data usage per customer increased 30.1% driving data ARPU growth of
9.0%. Data usage per customer reached 4.4 GB per customer per month
from 3.4 GB per customer per month in the prior period. Q3'23 data
usage per customer increased to 4.6 GB per month (up by 32.2%) and
4G data usage per customer at 7.5 GB per month from 5.6 GB per
customer per month (up by 34.5%).
Mobile services EBITDA was $1,728m, and grew by 14.7% in
constant currency with an EBITDA margin of 49.1%, declining 50
basis points in constant currency. The reduction in EBITDA margin
was due to an increase in operating costs in Nigeria reflecting
energy price inflation.
Operating free cash flow was $1,308m, up by 18.5%, due to the
expansion of EBITDA partially offset by higher capex.
Mobile money(1)
Description Unit Nine-month period ended Quarter ended
of measure
------------------- ------------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised
statement
of operations
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue (2) $m 515 406 26.9% 29.8% 183 148 24.2% 30.3%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Nigeria $m 0 0 - - 0 0 - -
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
East Africa $m 395 300 31.5% 32.5% 142 111 28.3% 34.3%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Francophone
Africa $m 120 106 13.5% 21.7% 41 37 11.4% 18.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 256 207 23.6% 25.9% 92 75 22.6% 28.0%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(129) (154) (63) (89)
EBITDA Margin % 49.7% 51.0% bps bps 50.0% 50.7% bps bps
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
& Amortization $m (13) (10) 24.4% 29.3% (5) (4) 28.2% 37.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Profit $m 237 188 26.3% 28.3% 84 68 23.3% 28.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 26 20 28.2% 28.2% 6 9 (41.8%) (41.8%)
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Free
Cash Flow $m 230 187 23.2% 25.6% 86 66 31.7% 38.4%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
customer base million 31.4 25.7 22.2% 31.4 25.7 22.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Transaction value $bn 64.3 47.6 34.9% 37.0% 24.2 17.2 40.7% 46.7%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
ARPU $ 2.0 1.9 4.7% 7.1% 2.0 2.0 1.8% 6.8%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) Mobile money consolidates the results of mobile money
operations from all operating entities within the Group. Airtel
Money Commerce BV (AMC BV) is the holding company for all mobile
money services for the Group, and as of 31 December 2022, it
consolidates mobile money operations from 10 OpCos, currently
excluding operations in Nigeria, Tanzania, Congo Brazzaville, and
Chad. It is management's intention to continue work to transfer all
these remaining mobile money services operations into AMC BV,
subject to local regulatory requirements.
(2) Mobile money service revenue post inter-segment eliminations
with mobile services was $403m in nine-month period ended 31
December 2022 and $312m in the prior period.
Mobile money revenue of $515m increased 26.9% in reported
currency and 29.8% in constant currency. The constant currency
growth was partially offset by average currency devaluations mainly
in the Central African franc (14.1%), the Ugandan shilling (5.0%)
and the Malawian kwacha (21.2%), in turn partially offset by the
appreciation in the Zambian kwacha (14.5%). Revenue growth of 29.8%
was driven by both East Africa and Francophone Africa, of 32.5% and
21.7% respectively. In Nigeria, mobile money services (Smartcash)
were launched in June 2022. Our initial focus in the period has
been to invest in the platform technology, as well as the business
systems and processes to ensure confidence and reliability in the
platform.
Constant currency revenue growth of 29.8% was largely led by
customer base growth of 22.2%. The continued investment in
distribution infrastructure of exclusive channels of Airtel Money
branches and kiosks, as well as the expansion of mobile money
agents, helped us in adding more customers.
Mobile money customer base reached 31.4 million, an increase of
22.2% and mobile money customer base penetration reached 22.6%, an
increase of 2.2 percentage points. The expansion of distribution
enhanced transaction value per customer by 13.0% resulting in
mobile money ARPU growth of 7.1%. Mobile money ARPU growth was
largely driven by an increase in transaction values and higher
contributions from cash transactions, merchant payments and mobile
service recharges through Airtel Money.
Our mobile money transaction value grew by 37.0% and Q3'23
annualised transaction value reached almost $100bn in constant
currency. Q3'23 transaction value per customer reached $267 per
month, an increase of 20.2% in constant currency. Mobile money
revenue now accounts for 13.6% of total Group revenue in the
quarter.
Mobile money EBITDA increased to $256m, up by 25.9% in constant
currency. The drop in mobile money EBITDA margin was largely due to
additional spend in Nigeria PSB related to the launch of
Smartcash.
Regional Performance (mobile services and mobile money services
combined)
Nigeria
Description Unit Nine-month period ended Quarter ended
of measure
---------------- ------------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,585 1,370 15.7% 20.9% 545 476 14.6% 23.1%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 791 717 10.3% 15.4% 279 246 13.6% 22.1%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 653 539 21.1% 26.6% 222 189 17.6% 26.3%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile Money
Revenue $m 0 0 - - 0 0 - -
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 141 115 22.6% 27.9% 43 41 6.5% 14.3%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 810 757 6.9% 11.8% 282 266 6.2% 14.1%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(418) (415) (410) (408)
EBITDA Margin % 51.1% 55.3% bps bps 51.8% 55.9% bps bps
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
KPI
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 3.8 3.7 2.4% 7.0% 3.9 3.9 (0.2%) 7.2%
---------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
East Africa
Description Unit Nine-month period ended Quarter ended
of measure
---------------- ------------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,444 1,282 12.7% 16.1% 502 459 9.5% 15.8%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 631 586 7.8% 11.9% 215 210 2.5% 8.8%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 397 339 17.3% 20.8% 140 121 15.3% 21.9%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile Money
Revenue $m 395 300 31.5% 32.5% 142 111 28.3% 34.3%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 97 118 (17.8%) (14.1%) 33 40 (17.7%) (12.3%)
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 766 653 17.3% 20.5% 275 240 14.5% 21.1%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
210 194 238 239
EBITDA Margin % 53.0% 50.9% bps bps 54.8% 52.4% bps bps
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
KPI
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 2.7 2.5 5.2% 8.4% 2.7 2.7 1.6% 7.4%
---------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Francophone Africa
Description Unit Nine-month period ended Quarter ended
of measure
---------------- ------------- ---------------------------------------- ----------------------------------------
Dec-22 Dec-21 Reported Constant Dec-22 Dec-21 Reported Constant
currency currency currency currency
change change change change
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 891 849 5.0% 12.7% 304 288 5.3% 12.0%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 453 446 1.5% 9.4% 154 152 0.8% 7.6%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 268 249 7.3% 15.0% 92 84 9.0% 15.8%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile Money
Revenue $m 120 106 13.5% 21.7% 41 37 11.4% 18.2%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 86 79 9.2% 14.8% 29 26 11.8% 16.6%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 414 372 11.3% 18.6% 133 128 3.8% 9.9%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
262 233 (63) (82)
EBITDA Margin % 46.5% 43.9% bps bps 43.9% 44.5% bps bps
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
KPI
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 3.7 3.8 (3.6%) 3.5% 3.7 3.7 (1.9%) 4.3%
---------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Consolidated performance
Description UoM Nine-month period ended- Nine-month period ended-
December 2022 December 2021
-------------- ----- ------------------------------------------------------- -------------------------------------------------------
Mobile Mobile Unallocated Eliminations Total Mobile Mobile Unallocated Eliminations Total
services money services money
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Revenue $m 3,515 515 (0) (116) 3,914 3,183 406 (0) (97) 3,492
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Voice
revenue $m 1,872 (0) 0 1,872 1,747 (0) 0 1,747
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Data revenue $m 1,318 - (0) 1,318 1,127 - (0) 1,127
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Other
revenue $m 325 - (4) 321 309 - (3) 306
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
EBITDA $m 1,728 256 (68) 0 1,916 1,576 207 (81) 0 1,702
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
EBITDA
margin % 49.1% 49.7% 49.0% 49.5% 51.0% 48.8%
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Depreciation
and
amortization $m (581) (13) (4) - (598) (521) (10) (25) - (556)
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Operating $m - - - - - - - -
exceptional
items
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Operating
profit $m 1,070 237 11 0 1,318 1,015 188 (57) 0 1,146
-------------- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Risk Factors
The Group's business and industry in which it operates together
with all other information contained in this document, including in
particular the risk factors are summarised below. Additional risks
and uncertainties relating to the Group that are currently unknown
to the Group, or those the Group currently deem immaterial may
individually or cumulatively also have a material adverse impact on
the Group's business, results of operations and financial
position.
Summary of principal risks
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. An inability to invest and upgrade our network and IT
infrastructure could affect our ability to compete effectively in
the market.
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 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 diverse and dynamic legal, tax and regulatory
environment. 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. However, we are continually
faced with uncertain and constantly evolving legal and regulatory
requirements 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, 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.
Based on the above-mentioned methodology, the weighted average
yearly potential devaluation of the basket of currencies in which
the Group is exposed is estimated to be in the range of 7% to
8%.
With respect to currency devaluation sensitivity, on a 12-month
basis, a 1% currency devaluation across all currencies in our OpCos
would have a negative impact of $49m on revenues, $29m on EBITDA
and $25m on finance costs (excluding derivatives). Our largest
exposure is to the Nigerian naira, for which a 1% devaluation would
have a negative impact of $21m on revenues, $11m on EBITDA and $8m
on finance costs (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 above-mentioned devaluation.
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.
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.
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 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.
The following metrics are useful in evaluating the Group's
operating performance:
APM Closest Adjustments to reconcile to IFRS measure Definition and purpose
equivalent
IFRS measure
--------------------------
EBITDA and Operating The Group defines EBITDA
margin profit * Depreciation and amortisation as operating
profit/(loss) for the
period before
* Exceptional items depreciation and
amortisation and adjusted
for exceptional items.
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.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
EBITDA and margin.
-------------- -------------- ------------------------------------------------------------ --------------------------
Underlying Profit / The Group defines
profit / (loss) before * Exceptional items underlying profit/(loss)
(loss) before tax before tax as
tax 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.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
underlying profit/(loss)
before tax.
-------------- -------------- ------------------------------------------------------------ --------------------------
Effective tax Reported tax The Group defines
rate rate * Exceptional items effective tax rate as
reported tax rate
(reported tax charge
* Foreign exchange rate movements divided by
reported profit before
tax) adjusted for
* One-off tax impact of prior period, tax litigation exceptional items,
settlement and impact of tax on permanent differences 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.
Exceptional tax items or
any tax arising on
exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison
of the Group's
performance on a
period-to-period basis
and could distort the
understanding
of our performance for
the period and the
comparability between
periods and hence are
adjusted
to arrive at effective
tax rate.
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) The Group defines
profit/(loss) for the * Exceptional items underlying profit/(loss)
after tax period 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.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
underlying profit/(loss)
after tax.
-------------- -------------- ------------------------------------------------------------ --------------------------
Earnings per EPS The Group defines
share before * Exceptional items earnings per share before
exceptional exceptional items as
items 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.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
earnings for the purpose
of earnings per
share before exceptional
items.
-------------- -------------- ------------------------------------------------------------ --------------------------
Operating Cash The Group defines
free cash generated * Income tax paid operating free cash flow
flow from as net cash generated
operating from operating activities
activities * Changes in working capital before income tax paid,
changes in working
capital, other non-cash
* Other non-cash items items, non-operating
income,
exceptional items, and
* Non-operating income after capital
expenditures. The Group
views operating free cash
* Exceptional items flow
as a key liquidity
measure, as it indicates
* Capital expenditures the cash available to pay
dividends, repay debt
or make further
investments in the Group.
-------------- -------------- ------------------------------------------------------------ --------------------------
Net debt and Borrowings The Group defines net
leverage * Lease liabilities debt as borrowings
ratio including lease
liabilities less cash and
* Cash and cash equivalent cash equivalents,
term deposits with banks,
deposits given against
* Term deposits with banks borrowings/non-derivative
financial instruments,
processing costs related
* Deposits given against borrowings/ non-derivative to borrowings and fair
financial instruments value hedge adjustments.
The Group defines
leverage ratio as net
* Fair value hedges 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 No direct The Group defines return
capital equivalent * Exceptional items to arrive at EBIT on capital employed
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 adjusted
for exceptional
items.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
EBIT.
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 2022. Reported currency percentage change
is derived on the basis of 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.
Changes to APMs
-- Underlying revenue: The underlying revenue has not been
defined as an APM due to the absence of any exceptional items
during the period.
-- Return on capital employed (ROCE): The Group has revised the
computation of ROCE by grossing up the 'equity attributable to
owners of the Company' for put option provided to minority
shareholders. The previous period ROCE has also been restated for
this change.
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 & 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 for the current financial year and previous
financial years at a fixed 'constant currency'
exchange rate, which is done to measure the organic
performance of the Group. Growth rates
for reporting regions and service segments are in
constant currency as it better represents
the performance of the business. Constant currency growth
rates for prior periods are calculated
using closing exchange rates as at the end of prior
period.
---------------------------------------------------------- ----------------------------------------------------------
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 Foreign exchange rate movements are specific items that
companies are non-tax deductible in a few of
and holding companies 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 user charges (IUC) Interconnect user 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.
---------------------------------------------------------- ----------------------------------------------------------
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 Total MBs consumed (uploaded & downloaded) by customers
on the Group's GPRS, 3G and 4G 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.
---------------------------------------------------------- ----------------------------------------------------------
Revenue An alternative performance measure (non-GAAP). Defined as
revenue before exceptional items.
---------------------------------------------------------- ----------------------------------------------------------
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
--------------- ------------------------------------------------
ARPU Average revenue per user
--------------- ------------------------------------------------
bn Billion
--------------- ------------------------------------------------
bps Basis points
--------------- ------------------------------------------------
CAGR Compound annual growth rate
--------------- ------------------------------------------------
Capex Capital expenditure
--------------- ------------------------------------------------
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
--------------- ------------------------------------------------
ROCE Return on capital employed
--------------- ------------------------------------------------
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] Alternative performance measures (APM) are described on page
17.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTKZGGZGMMGFZZ
(END) Dow Jones Newswires
February 02, 2023 02:00 ET (07:00 GMT)
Airtel Africa (LSE:AAF)
Historical Stock Chart
From May 2023 to Jun 2023
Airtel Africa (LSE:AAF)
Historical Stock Chart
From Jun 2022 to Jun 2023
