Airtel Africa lifts profit 131% to hit $335m

Airtel Africa partners UNICEF on children’s digital learning in Africa

By Jeph Ajobaju, Chief Copy Editor

Airtel Africa grew profit after tax (PAT) to $335 million in half year ended June 2021 (H1 2021), a 131 per cent leap above $145 million in H1 2020, its latest financial results filed with the Nigerian Exchange Group (NGX) show.

Airtel Africa also disclosed in a released filed with the NGX that it has secured a $57 million partnership with UNICEF to improve the digital learning of children in Africa in the next five years.

It says the deal will help accelerate digital learning through internet connection to schools and ensuring free access to learning platforms across 13 countries.

Its profit growth was largely driven by increases in all its revenue generating units which rose 25.2 per cent to $2.27 billion compared to $1.82 billion in H1 2020 made from voice revenue.

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Breakdown of revenue streams

Voice revenue generated by Airtel Africa increased 17.3 per cent to $1.14 billion in H1 2021 against $972 million in H1 2020, as reported by Nairametrics.

• Voice revenue accounted for 50.2 per cent of total revenue
• Data revenue rose 33.8 per cent to $733 million ($548 million in H1 2020)

• Mobile money jumped 43.1 per cent to $259 million
• Other income increased 22 per cent to $200 million

• EBITDA grew 48.3 per cent to $1.09 billion (44.7 per cent in H1 2020)
• PAT leapt 131 per cent to $335 million

• Earnings per share increased to 7.6 cents

• Data customers grew 10.9 per cent to N43.9 million (N39.6 million in H1 2020)

• Mobile money customers increased 18.9 per cent to N23.9 million (N20.1 million in H1 2020)

• Total customer base notched up 5.4 per cent to 122.7 million (116.4 million in H1 2020)

Airtel Nigeria

In its Nigeria operation, Airtel Africa recorded growth across all revenue generating units, increasing 24.58 per cent to $896 million from $718 million in H1 2020

• Voice revenue rose 14 per cent to $471 million from $413 million
• Data revenue surged 36.6 per cent to $351 million from $257 million

Nairametrics reports that Airtel Africa has entered an agreement with Qatar Holding LLC, an affiliate of Qatar Investment Authority, which invested $200 million in Airtel Mobile Commerce BV, a subsidiary of Airtel Africa.

This could serve as a major boost for the mobile money unit of Airtel Africa.

Strong performance despite Covid

Airtel Africa CEO Segun Ogunsanya said: “Our first half financial performance has been strong.

“The first half of last year, and especially Q1, was impacted by the start of Covid, but even after adjusting for these effects, our revenue growth rates for the half year for the Group and all our service segments are ahead of our FY’21 revenue growth trends, and in reported terms these are all in strong double digits.

“The risks from Covid still remain, with sub-Saharan Africa continuing to experience a third wave of the pandemic. Governments continue to implement balanced measures of lockdowns and restrictions accordingly.

“But vaccination levels remain low, and we continue to monitor the situation for potential impacts on economies and consumers.

“Operationally, we have continued our network modernisation and expansion, aligned with an extension of our distribution capabilities, which have together contributed towards continued strong growth in ARPUs across voice, data and mobile money.

“We have seen an improvement in our customer growth trends for the Group as we approach stability of net monthly movements in Nigeria.”

Airtel Africa recently launched its long-term sustainability strategy which details plans to improve the lives of millions of people across Africa through digital and financial inclusion and access to education.

Ogunsanya said the company identified six of the United Nations Sustainable Development Goals – Quality education, Gender equality, Decent work and economic growth, Industry, innovation and infrastructure, Reduced inequalities, and Responsible consumption and production.

Partnership with UNICEF on children’s digital learning

The 13 countries to benefit from the partnership Airtel Africa signed with UNICEF are Chad, Congo, Democratic Republic of the Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Tanzania, Uganda, and Zambia.

Children from these countries will benefit from the partnership, which is in line with “Reimagine Education”, a global programme UNICEF launched in 2020.

The initiative seeks public and private sector investment in digital learning as an essential service for every child. Airtel Africa is the first African private sector partner to make a multi-million dollar commitment to it.

“Hundreds of millions of children in Africa have seen their education disrupted or put on hold because of the COVID-19 pandemic,” said UNICEF Executive Director Henrietta Fore.

“By championing digital education for children in Africa, this partnership with Airtel Africa will help put children’s learning back on track.”

Olusanya commended the initiative and expressed excitement about Airtel Africa working with UNICEF to advance education on the continent.

“As a business,” he explained, “we have focused on education as a key area of our corporate social responsibility, and we are delighted that this partnership with UNICEF will enable us to accelerate results.

“It also coincides with the launch of our new sustainability strategy, which lays out our commitment to education.”