Airtel Africa (LON: AAF) reported a 28.2% rise in half-year revenue to $3,823m today, with a record second-quarter margin, as it more than doubled capital spending.
The telecoms and mobile money group, which operates in 14 countries in sub-Saharan Africa, published its results for the six months to 30 September.
Revenue compares with $2,982m a year earlier and rose 20.8% in constant currency, which strips out exchange-rate swings. Underlying EBITDA, a measure of operating earnings before one-off items, climbed 32.8% to $1,921m from $1,447m.
The underlying EBITDA margin widened to 50.3% from 48.5%, and the second quarter alone set a record of 50.4%. Operating profit rose 34.2% to $1,286m from $959m.
Profit after tax rose 20.5% to $452m from $376m, a slower pace than operating profit because of $55m of exceptional items.
These covered an in-principle settlement of a commercial dispute at a subsidiary and costs of the Airtel Money listing, alongside higher finance costs and lower currency and derivative gains. Basic earnings per share were 10.2 cents against 8.3 cents.
Customers grew 11.6% to 193.9m, with mobile money customers up 22.4% to 60.9m. In constant currency, data revenue rose 28% and mobile money revenue 25.8%.
Nigeria, the group’s largest market, grew revenue 27% in constant currency over the half, or 45% in reported currency, helped by a stronger naira. Second-quarter constant-currency growth was 24.4% in Nigeria, 20.3% in Francophone Africa, where it accelerated, and 18.6% in East Africa.
Capital expenditure more than doubled to $657m, covering about 4,200 new sites and home broadband. Operating cash flow rose 26.7% to $1,759m, and operating free cash flow rose 12.0% to $1,264m from $1,129m.
Leverage, which compares net debt with earnings, fell to 1.6x from 2.1x, or to 0.5x from 0.8x including leases. The interim dividend rose 9.2% to 3.1 cents a share, payable on 11 December to shareholders on the register on 13 November. Share buybacks totalled $108.7m in the period.
The group kept its full 77.85% stake through the 14 October London listing of Airtel Money’s holding company, where 270m existing shares (10%) were sold at £1.96. Chief executive Sunil Taldar said the investment case “remains as compelling as ever.” He added that margins will continue to depend on the macroeconomic backdrop, particularly fuel costs.
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