Airtel Africa has revealed that it experienced a rise in it’s revenue for the quarter ended June 2022. Airtel Africa business recorded 13%-on year and 2.8% sequentially in reported currency, to $1.257 billion, and average revenue per user (ARPU) was up 0.6% on quarter and 4.4% on year, at $2.9.
The company on Thursday also reported, a net profit of $178 million in the fiscal first quarter of 2023, a 25% on-year jump, but a 26% fall sequentially, due to higher costs and also barring of outgoing calls for customers who had not yet registered their National Identification Numbers in Nigeria.
Airtel Africa’s, Chief Executive Officer, Segun Ogunsanya, in a statement, said that the telco has improved its margins amid “strong earnings growth. I am also particularly pleased with our ongoing strengthening of the balance sheet which continued after the period ended, with early repayment of $450 million of debt at Group level”.
The CEO, revealed that the company faced headwinds from outbound voice call barring for customers who had not yet registered their National Identification Numbers in Nigeria and the loss of site sharing revenue in those operating companies where it recently sold towers.
“Inflation is also having an impact on our cost base, particularly on energy costs, but our continued efficiency drives have ensured that we have still been able to increase our margins, albeit at a slightly slower rate,” the company said.
Airtel Africa’s net finance costs in the June 2022 quarter increased by 55% on-year and 34.8% sequentially to $151 million.
“Net finance costs increased by $54 million, as a result of $51 million higher foreign exchange and derivative losses and $6 million higher interest on lease obligations, partially offset by lower interest costs due to debt reduction (including the repayment of $505m bonds in March 2022),” the company said in its quarterly report.
The company’s net debt fell 13.5% on-year but increased 3.9% sequentially to $3.056 billion in the quarter ended June 2023.