REG - Airtel Africa PLC - Q3 Results
30/01/2025 07:00
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RNS Number : 1979V Airtel Africa PLC 30 January 2025
Airtel Africa plc
Results for nine-month period ended 31 December 2024
30 January 2025
Focussed execution drives strong operating and financial momentum. Second
share buyback programme launched
Operating highlights
· The total customer base grew 1 by 7.9% to 163.1 million. Data
customer penetration continues to rise, with a 13.8% increase in data
customers to 71.4 million. Data usage per customer increased by 32.3% to 6.9
GBs, with smartphone penetration increasing by 5.2% to reach 44.2%.
· The continued investment to increase financial inclusion across our
markets contributed to an 18.3% increase in mobile money subscribers to 44.3
million. Transaction value in Q3'25 increased by 33.3% in constant currency1
with annualised transaction value of $146bn.
· Data ARPU growth of 15.0% and mobile money ARPU growth of 11.8% in
constant currency continued to support overall ARPUs which rose 12.0% YoY in
constant currency.
· Customer experience remains core to our strategy with sustained
network investment during the period. In line with our strategic priorities,
data capacity across our network has increased by 20.8% with the rollout of
2,850 sites and approximately 2,600 kms of fibre.
Financial performance
· Revenues of $3,638m grew by 20.4% in constant currency but declined
by 5.8% in reported currency as currency devaluation continued to impact
reported revenue trends. Strong execution supported a further quarter of
accelerating growth with Q3'25 revenue growth of 21.3% in constant currency
and reported currency revenue growth of 2.5%.
· Across the Group, mobile services revenue grew by 18.8% in constant
currency, driven by voice revenue growth of 9.8% and data revenue growth of
29.5%. Mobile money revenue grew by 29.6% in constant currency.
· EBITDA for the nine-month period declined by 11.9% in reported currency
to $1,681m with EBITDA margins of 46.2% impacted by increased fuel prices
and the lower contribution of Nigeria to the Group. However, following initial
successes of our cost efficiency programme, EBITDA margins have expanded from
45.3% in Q1'25 to 46.9% in Q3'25.
· In Q3'25, profit after tax benefitted from an exceptional gain of
$94m (net of tax) following the naira and Tanzanian shilling appreciation.
However, over the nine-month period ending 31 December 2024, profit after tax
of $248m was impacted by $57m of exceptional derivative and foreign exchange
losses (net of tax).
· EPS before exceptional items declined from 7.1 cents in the prior
period to 6.2 cents, primarily impacted by increased costs associated with the
ATC contract renewal, which had no impact on cashflows. Basic EPS of 4.4 cents
compares to negative (1.6 cents) in the prior period, predominantly reflecting
lower derivative and foreign exchange losses in the current period.
Capital allocation
· Capex of $456m was 7.8% lower compared to prior period. Capex
guidance for the full year remains between $725m and $750m as we continue to
invest for future growth.
· We have been consistently reducing our foreign currency debt
exposure, having paid down $739m of foreign currency debt over the last year.
Furthermore, 92% of our OpCo debt (excl. lease liabilities) is now in local
currency, up from 79% a year ago.
· Leverage has increased from 1.3x to 2.4x primarily reflecting the
$1.2bn increase in lease liabilities arising from the extension of our tower
lease agreements with ATC as previously announced. To reflect the Group's
financial market debt position and reduce volatility associated with lease
accounting under IFRS16, the Group has introduced 'Lease-adjusted leverage' as
an additional APM in the current period. Lease-adjusted leverage increased
from 0.7x in the prior period to 1.1x as of 31 December 2024 reflecting the
impact of higher debt and lower lease-adjusted EBITDA given the translation
impact arising from currency devaluation (see page 6).
· Following the completion of the first $100m buyback, in December 2024 we
announced the commencement of a second share buyback programme that will
return up to $100m to shareholders. This reflects the Board's confidence in
the continued growth potential, the strength of the balance sheet and
consistent cash accretion at the holding company level.
Sunil Taldar, chief executive officer, on the trading update:
"We have delivered an improvement in both the operating and financial
performance in the last quarter driven by our refined strategy which is
focussed on delivering great customer experience across all touch points. An
increasingly important component of this is to provide a best-in-class
network, digitise and simplify the customer journey. Our focus on speed and
quality execution is enabling us to unlock the substantial opportunities for
growth across our markets and business segments, where demand remains
significant, resulting in a further acceleration of constant currency revenue
growth to 21.3% in the most recent quarter.
We remain committed to investing for the future by expanding our distribution
and network to ensure that we capture this significant growth opportunity on
offer. Despite the challenging environment for many of our customers, we
continue to see strong demand for our services as we enable connectivity and
facilitate access to the digital economy. The scale of data traffic growth
across our markets - an increase of 49% over the last year - is testament to
the investments we have made and the relentless focus on our strategy to
create value for all our stakeholders.
As we have communicated previously, our cost efficiency programme continues to
deliver EBITDA margin improvements, with a further expansion of margins in
Q3'25. We continue to focus on further margin improvement. Furthermore, our
capital structure remains robust with just 8% of OpCo debt in foreign currency
- a substantial improvement over the last year. This, together with continued
confidence in the outlook for the business, has enabled the Board to announce
a second share buyback programme, which will return up to $100m to
shareholders.
The recent signs of currency stabilisation in some markets and the recent
decision from the Nigerian Communications Commission (NCC) regarding tariff
adjustments in Nigeria are encouraging and signal a more stable and supportive
operating environment. While challenges remain, these developments provide a
firm foundation for growth and improved market conditions."
GAAP measures
(Nine-month period ended)
Description Dec-24 Dec-23 Reported
currency
$m $m change
Revenue 3,638 3,861 (5.8%)
Operating profit 1,081 1,293 (16.4%)
Profit after tax 248 2 -
Basic EPS ($ cents) 4.4 (1.6) -
Net cash generated from operating activities 1,623 1,766 (8.1%)
Alternative performance measures (APM)2 (#_ftn3)
(Nine-month period ended)
Description Dec-24 Dec-23 Reported Constant
currency
currency
$m $m change change
Revenue 3,638 3,861 (5.8%) 20.4%
EBITDA 1,681 1,908 (11.9%) 15.3%
EBITDA margin 46.2% 49.4% (323) bps (206) bps
EPS before exceptional items ($ cents) 6.2 7.1 (12.7%)
Operating free cash flow 1,225 1,414 (13.4%)
About Airtel Africa
Airtel Africa is a leading provider of telecommunications and mobile money
services, with operations in 14 countries in sub-Saharan Africa. Airtel
Africa provides an integrated offer to its subscribers, including mobile
voice and data services as well as mobile money services both nationally and
internationally.
The company's strategy is focused on providing a great customer experience
across the entire footprint, enabling our corporate purpose of transforming
lives across Africa.
Enquiries
Airtel Africa - Investor Relations
Alastair Jones +44 7464 830 011
Investor.relations@africa.airtel.com +44 207 493 9315
(mailto:Investor.relations@africa.airtel.com)
Hudson Sandler
Nick Lyon
Emily Dillon
airtelafrica@hudsonsandler.com (mailto:airtelafrica@hudsonsandler.com) +44 207 796 4133
Conference call
Management will host an analyst and investor conference call at 13:00pm UK
time (BST) on Thursday 30 January 2025, 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
(https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=2869583&linkSecurityString=c96670de8)
Key consolidated financial information
Description Unit of measure Nine-month period ended Quarter ended
Dec-24 Dec-23 Reported currency Constant currency Dec-24 Dec-23 Reported currency Constant currency
change %
change %
change %
change %
Profit and loss summary (1)
Revenue (2) $m 3,638 3,861 (5.8%) 20.4% 1,268 1,238 2.5% 21.3%
Voice revenue $m 1,456 1,707 (14.7%) 9.8% 496 538 (7.7%) 10.4%
Data revenue $m 1,306 1,343 (2.8%) 29.5% 461 428 7.9% 31.4%
Mobile money revenue (3) $m 731 631 15.8% 29.6% 265 215 23.4% 31.2%
Other revenue $m 308 320 (3.8%) 23.2% 104 104 (0.6%) 19.1%
Expenses $m (1,974) (1,971) 0.2% 25.1% (679) (634) 7.0% 24.2%
EBITDA (4) $m 1,681 1,908 (11.9%) 15.3% 594 606 (2.0%) 18.5%
EBITDA margin % 46.2% 49.4% (323) bps (206) bps 46.9% 49.0% (214) bps (111) bps
Depreciation and amortisation $m (600) (615) (2.4%) 26.0% (219) (198) 10.9% 34.7%
Operating profit $m 1,081 1,293 (16.4%) 10.0% 375 408 (8.1%) 10.6%
Other finance cost - net of finance income (5) $m (514) (754) (31.9%) (217) (352) (38.5%)
Finance cost - exceptional items (6) $m (87) (484) (82.1%) 144 (13) -
Total finance cost $m (601) (1,238) (51.5%) (73) (365) (80.1%)
Net monetary gain relating to hyperinflationary accounting $m 14 - - 14 - -
Profit before tax $m 494 55 796.6% 316 43 639.0%
Tax $m (276) (207) 33.6% (97) (28) 244.3%
Tax - exceptional items (6) $m 30 154 (80.7%) (50) 0 -
Total tax charge $m (246) (53) 365.6% (147) (28) 422.9%
Profit after tax $m 248 2 - 169 15 -
Non-controlling interest $m (84) (63) 34.6% (36) (21) 71.4%
Profit attributable to owners of the company - before exceptional items $m 230 265 (13.5%) 48 3 -
Profit/(Loss) attributable to owners of the company $m 164 (61) - 133 (6) -
EPS - before exceptional items cents 6.2 7.1 (12.7%) 1.3 0.1 -
Basic EPS cents 4.4 (1.6) - 3.6 (0.2) -
Weighted average number of shares million 3,713 3,751 (1.0%) 3,686 3,751 (1.7%)
Capex $m 456 494 (7.8%) 140 182 (23.3%)
Operating free cash flow $m 1,225 1,414 (13.4%) 454 424 7.2%
Net cash generated from operating activities $m 1,623 1,766 (8.1%) 644 646 (0.3%)
Net debt $m 5,268 3,281 5,268 3,281
Leverage (net debt to EBITDA) times 2.4x 1.3x 2.4x 1.3x
Lease-adjusted leverage (7) times 1.1x 0.7x 1.1x 0.7x
Return on capital employed % 19.2% 24.3% (509) bps 20.2% 24.0% (379) bps
Operating KPIs
ARPU $ 2.6 3.0 (12.4%) 12.0% 2.7 2.8 (4.1%) 13.5%
Total customer base million 163.1 151.2 7.9% 163.1 151.2 7.9%
Data customer base million 71.4 62.7 13.8% 71.4 62.7 13.8%
Mobile money customer base million 44.3 37.5 18.3% 44.3 37.5 18.3%
All commentary in the footnotes refers to the nine-month period ended 31
December 2024, and the prior period (31 December 2023), unless otherwise
stated.
(1) During the quarter ended 31 December 2024, the Group has adopted
hyperinflationary accounting for Malawi operations (see page 7 for further
details).
(2) Revenue includes inter-segment eliminations of $163m and $140m for
the prior period.
(3) Mobile money revenue post inter-segment eliminations with mobile
services were $568m and $491m for the prior period.
(4) EBITDA includes other income of $17m and $18m for the prior
period.
(5) Other finance cost - net of finance income includes derivative and
foreign exchange losses of $66m and $419m in the prior period which have not
been treated as exceptional items.
(6) Finance cost - exceptional items were predominantly driven by the
devaluation of the Nigerian naira over the respective periods. In Q3'25, we
recorded an exceptional gain of $144m relating to the appreciation of the
Nigerian naira and the Tanzanian shilling during the quarter. These
exceptional items resulted in an exceptional tax gain of $50m.
(7) During the current period, the Group has included 'Lease-adjusted
leverage' as an additional APM which reduces the volatility in the leverage
ratio associated with lease accounting under IFRS16, improves comparability
between periods and reflects the Group's financial market debt position. For
the detailed discussion on the new APM, see page 6. For definitions see page
25.
Financial review for the nine-month period ended 31 December 2024
Revenue
Group revenue in reported currency declined by 5.8% to $3,638m, with constant currency growth of 20.4%. Group mobile services revenue grew by 18.8% in constant currency, supported by voice revenue growth of 9.8% and data revenues increasing by 29.5% over the period. In Q3'25, constant currency revenue growth accelerated to 21.3% from 20.8% in Q2'25 primarily driven by 22.9% growth in East Africa and Francophone Africa revenue growth of 10.2%, respectively. In Nigeria, growth remained strong at 34.4% in Q3'25. In nine-month period ended 31 December 2024, mobile money revenue grew by 29.6% in constant currency, primarily driven by continued strong growth in East Africa.
Reported currency revenue growth was particularly impacted by significant currency devaluations in Nigeria, Malawi and Zambia. In particular, the Nigerian naira devalued from a weighted average NGN/USD rate of 677 in the prior nine - month period to NGN/USD 1,532 in the current period.
EBITDA
Reported currency EBITDA declined by 11.9% to $1,681m reflecting the impact of currency devaluation over the period, particularly in Nigeria. In constant currency, EBITDA increased by 15.3% with EBITDA margins of 46.2%, a decline of 323bps in reported currency. The lower contribution of Nigeria following the significant naira depreciation and a significant increase in fuel prices (mainly, in Nigeria by around 60%), were the primary drivers of the margin decline over the last year. Mobile services EBITDA increased by 11.5% in constant currency with EBITDA margin at 45.3%, whilst mobile money EBITDA margins of 53.0% increased 120bps in constant currency, supporting growth of 32.6%.
Following the launch of a comprehensive cost efficiency programme, EBITDA margins in Q3'25 increased to 46.9% from 46.4% in the previous quarter (Q2'25).
Finance costs
Total finance costs for the nine-month period ended 31 December 2024 was
$601m, primarily impacted by $153m of derivative and foreign exchange losses
(reflecting the revaluation of US dollar balance sheet liabilities and
derivatives following currency devaluation), of which $87m was classified as
exceptional following the Nigerian naira devaluation in H1'25 which has been
partially offset by naira and Tanzanian shilling appreciation in Q3'253
(#_ftn4) . Finance costs, excluding exceptional items and derivative and
foreign exchange losses increased from $335m to $448m in the current period
primarily on account of higher market debt and shift of foreign currency debt
to local currency debt in the operating entities carrying a higher average
interest rate. The recently announced ATC contract renewal also contributed
to a $37m increase in finance costs in Q3'25 following the increase in lease
liabilities, which had no impact on cashflows.
Profit before tax
Profit before tax at $494m during the nine-month period ended 31 December 2024
was largely impacted by the $153m derivative and foreign exchange losses as
discussed above and lower EBITDA due to significant currency devaluation
across key markets.
Taxation
Total tax charges were $246m as compared to $53m in the prior period. Total
tax charges in the current period reflected an exceptional gain of $30m and
$154m in the prior period on finance cost - exceptional items. Tax charges,
excluding exceptional items, were $276m in the nine-month period ended 31
December 2024 as compared to $207m in the prior period. Tax charges increased
by $69m which was largely contributed by increase in profits in profitable
OpCos and a one-off tax gain of $30m arising from a deferred tax liability
reversal in the prior period.
Profit after tax
Profit after tax of $248m during the nine-month period ended 31 December 2024
was primarily impacted by the $57m of exceptional derivative and foreign
exchange losses (net of tax) and lower EBITDA due to significant currency
devaluation across key markets. The introduction of hyperinflationary
accounting in Malawi resulted in a $10m loss to profit after tax (see page 7
for further details)
Basic EPS
Basic EPS of 4.4 cents compares to negative (1.6 cents) in the prior period,
predominantly reflecting lower derivative and foreign exchange losses in the
current period.
Leverage
Over the last year, we have continued to improve our debt structure following
the repayment of the outstanding $550m of HoldCo debt in May 2024, and have
also increased the proportion of local currency OpCo debt (excluding lease
liabilities) on our balance sheet to 92% as of 31 December 2024 from 79% a
year ago. In total, we have paid down $739m of US dollar debt over the last
year.
As previously reported (see 'Other significant updates' on page 9), we have
extended our tower lease agreements with ATC for approximately 7,100 sites in
Nigeria, Uganda, Kenya and Niger for a further 12-year period. Under IFRS16
accounting standards, the extension of these tower lease agreements by 12
years has resulted in an approximate $1.2bn increase in lease liabilities,
resulting in an approximate 0.6x increase in the Group's leverage ratio.
Leverage was further impacted by the decrease in reported currency EBITDA
following the Nigerian naira devaluation, resulting in Group leverage of 2.4x
as of 31 December 2024.
The Group has introduced a lease-adjusted leverage APM which reduces the
volatility in the leverage ratio associated with lease accounting under
IFRS16, improves comparability between periods and reflects the Group's
financial market debt position. The lease-adjusted leverage increased from
0.7x in the prior period to 1.1x as of 31 December 2024. Of the 0.4x increase,
0.2x was primarily due to the decrease in reported currency lease-adjusted
EBITDA following the naira devaluation with the remaining increase due to an
increase in debt obligations.
The below table summarises how the lease-adjusted leverage has been
calculated:
Description Unit of measure As of As of
December 2024 December 2023
Long-term borrowing, net of current portion $m 1,194 975
Short-term borrowings and current portion of long-term borrowing $m 1,094 1,352
Add: Processing costs related to borrowings $m 10 7
Less: Fair value hedge adjustment $m - (2)
Less: Cash and cash equivalents $m (480) (328)
Less: Term deposits with banks $m (3) (488)
Add: Lease liabilities $m 3,453 1,765
Net debt $m 5,268 3,281
Less: Lease liabilities $m 3,453 1,765
Lease-adjusted net debt $m 1,815 1,516
Description UoM Nine months ended
31-Dec-24 31-Dec-23
Operating profit $ m 1,081 1,293
Add:
Depreciation and amortisation $ m 600 615
EBITDA $ m 1,681 1,908
Less:
Interest on lease liabilities $ m 210 144
Repayment of lease liabilities4 (#_ftn5) $ m 178 223
Total Lease payments $ m 388 367
Lease-adjusted EBITDA (EBITDAaL) $ m 1,293 1,541
Description UoM As of As of
31-Dec-24 31-Dec-23
Lease-adjusted EBITDA (EBITDAaL) (LTM) $ m 1,681 2,062
Lease-adjusted leverage (LTM) Times 1.1 0.7
Hyperinflationary accounting in Malawi
During the quarter ended 31 December 2024, Malawi met the requirements to be
designated as a hyperinflationary economy under IAS 29 'Financial Reporting in
Hyperinflationary Economies'. The Group has, therefore, applied
hyperinflationary accounting, as specified in IAS 29, to its Malawi operations
whose functional currency is the Malawian kwacha for the reporting period
commencing 1 April 2024.
The application of hyperinflationary accounting has resulted in a $11m
reduction in operating profit, a $14m net monetary gain relating to
hyperinflationary accounting and a $13m increase in deferred tax, resulting in
a $10m net decrease in profit after tax for the period ending 31 December
2024. On the balance sheet, non-monetary net assets and correspondingly equity
has increased by $416m (including an opening balance sheet adjustment of $308m
as of 1 April 2024).
GAAP measures
Revenue
Reported revenue of $3,638m declined by 5.8% in reported currency and grew by
20.4% in constant currency driven by both customer base growth of 7.9% and
ARPU growth of 12.0%. The gap between constant currency and reported currency
revenue growth was due to the average currency devaluations between the
periods, mainly in the Nigerian naira, the Malawian kwacha and the Zambian
kwacha, partially offset by an appreciation in the Kenya shilling.
Reported mobile services revenue at $3,077m declined 8.8% and grew by 18.8% in
constant currency. Mobile money revenue grew by 15.8% in reported currency. In
constant currency, mobile money revenue grew by 29.6%, driven by revenue
growth in East Africa of 32.1% and Francophone Africa of 21.1%, respectively.
Operating profit
Operating profit in reported currency declined by 16.4% to $1,081m as currency
headwinds offset the 10% growth of operating profit in constant currency.
Total finance costs
Total finance costs of $601m for the nine-month period ended 31 December 2024
was lower by $637m over the prior period. Current and prior period finance
costs were primarily impacted by $87m and $484m of exceptional derivative and
foreign exchange losses, respectively. Current period exceptional items relate
to $231m derivative and foreign exchange losses following the devaluation of
the Nigerian naira in H1'25, partially offset by derivative and foreign
exchange gain of $144m in Q3'25 on account of Nigerian naira and Tanzanian
shilling appreciation in the quarter. Prior period exceptional items were
related to derivative and foreign exchange losses due to Nigerian naira
devaluation in June 2023 and Malawian kwacha devaluation in November 2023.
Excluding exceptional items, finance cost was lower by $240m primarily on
account of lower derivative and foreign exchange losses, partially offset by
higher interest on market debt due to increase in market debt and shift of
foreign currency debt to local currency debt in the operating entities
carrying a higher average interest rate.
The Group's effective interest rate increased to 13.2% compared to 9.3% in the
prior period, largely driven by higher local currency debt at the OpCo level,
in line with our strategy of localising debt at OpCo, and the repayment of
$550m of HoldCo debt which carried a lower-than-average interest rate. In
Q3'25, the Group's effective interest rate remained stable relative to the
prior quarter (Q2'25).
Taxation
Total tax charges of $246m compares to $53m in the prior period. Total tax
charges in the current period reflected an exceptional gain of $30m and $154m
in the prior period on finance cost - exceptional items as explained above.
Tax charges, excluding exceptional items, were $276m in the nine-month period
ended 31 December 2024 as compared to $207m in the prior period.
Basic EPS
Basic EPS at 4.4 cents during the nine-month period ended 31 December 2024
compared to negative (1.6 cents) in the prior period.
Net cash generated from operating activities
Net cash generated from operating activities was $1,623m, lower by 8.1% as
compared to $1,766m in the prior period.
Alternative performance measures 2
EBITDA
EBITDA of $1,681m, declined by 11.9% in reported currency, and increased by 15.3% in constant currency. Growth in constant currency EBITDA was led by revenue growth and supported by continued improvement in operating efficiencies offset by the impact that inflationary cost pressures in a number of markets. The EBITDA margin declined by 323 basis points in reported currency to 46.2% reflecting the impact of lower contribution of Nigeria post significant naira devaluation and inflationary cost pressures.
The gap between constant currency and reported currency EBITDA growth was due to the currency devaluations between the periods, mainly in the Nigerian naira, the Malawian kwacha and the Zambian kwacha, partially offset by an appreciation in the Kenyan shilling.
Tax
The effective tax rate was 41.3%, compared to 40.2% in the prior period. The
effective tax rate is higher than the weighted average statutory corporate tax
rate of approximately 32%, largely due to the profit mix between various OpCos
and withholding taxes on dividends by subsidiaries.
Exceptional items
The exceptional item was $87m in the current period and $484m in the prior
period. Current period exceptional items relate to $231m derivative and
foreign exchange losses following the devaluation of the Nigerian naira in
H1'25, partially offset by derivative and foreign exchange gain of $144m in
Q3'25 on account of Nigerian naira and Tanzanian shilling appreciation in the
quarter. Prior period exceptional items were related to derivative and foreign
exchange losses due to Nigerian naira devaluation in June 2023 and Malawian
kwacha devaluation in November 2023.
These exceptional items resulted in an exceptional tax gain of $30m in current
period and $154m in prior period, respectively.
EPS before exceptional items
EPS before exceptional items declined from 7.1 cents in the prior period to
6.2 cents, primarily impacted by increased costs associated with the ATC
contract renewal, which had no impact on cashflows.
Operating free cash flow
Operating free cash flow was $1,225m, lower by 13.4%, as a result of lower
EBITDA due to currency devaluation over the period, particularly in Nigeria.
Other significant updates
Tariff adjustment approvals from the Nigerian Communications Commission (NCC)
On 20 January 2025, the NCC granted approval for tariff adjustments following
requests from the telecom operators in Nigeria in response to the prevailing
market conditions. The adjustments are capped at a maximum of 50% of current
tariffs, with requests reviewed on a case-by-case basis by the NCC.
Nigeria is a market with enormous potential for future growth in
telecommunications services, with a vibrant economy and youthful population
that will continue to benefit from Airtel Nigeria's investment ambitions. The
tariff adjustments reflect a balanced approach to ensuring the sustainability
of the telecommunications sector while safeguarding the interests of
consumers. The adjustments will support the continued growth of the industry
and will enable us to continue investing in network infrastructure, expanding
coverage and delivering improved products and services that meet the evolving
needs of our customers.
Directorate changes
On 9 January 2025, the Group announced that Jaideep Paul, chief financial
officer (CFO), had informed the Board of his decision to retire from his
position as executive director and CFO with effect from the end of the 2025
July AGM.
Kamal Dua, currently deputy CFO, will become an executive director and assume
the role of CFO following his appointment at the 2025 AGM.
On 28 October 2024, the Group announced the appointment of Gopal Vittal as a
non-executive director of Airtel Africa with immediate effect.
On 9 May 2024, the Group announced the appointment of Paul Arkwright, CMG, as
an independent non-executive director, with immediate effect.
On 3 July 2024, following the conclusion of the AGM, John Danilovich retired
as an independent non-executive director of Airtel Africa plc.
Completion of first share buyback programme and commencement of second buyback
programme
On 23 December 2024, the Group announced the commencement of a second share
buyback that will return up to $100m to shareholders. The share buyback
reflects the Board's confidence in the Airtel Africa's (the 'Company')
continued growth potential, the strength of its balance sheet and the
consistent cash accretion at the holding company level. Furthermore, the
buyback remains in line with the Company's existing capital allocation policy.
The programme will be executed in accordance with applicable securities laws
and regulations.
The share buyback programme is expected to be phased in two tranches, with the
first tranche commencing on the 23 December 2024 and anticipated to end on or
before 24 April 2025. The first tranche will amount to a maximum of $50m.
The Company has entered into an agreement with Barclays Capital Securities
Limited ("Barclays") to conduct the first tranche of the buyback and carry
out on-market purchases of its ordinary shares with the Company subsequently
purchasing its ordinary shares from Barclays. Under this agreement, Barclays
will act as riskless principal and will make decisions independently of the
Company.
The commencement of the second share buyback follows the completion of the
first share buyback programme which commenced on 1 March 2024 and ended on 28
October 2024. This buyback programme returned $100m to shareholders following
the purchase of 68,834,800 ordinary shares in aggregate, at a volume weighted
average price of GBP112.30 per ordinary share.
Renewal of tower lease agreements with American Tower Corporation
On 30 September 2024, the Group renewed tower lease agreements with ATC for
approximately 7,100 sites across Nigeria, Uganda, Kenya and Niger which were
set to expire over the next 12 to 24 months, for a period of 12 years. The
tower lease agreements with ATC were initially entered as a sale and leaseback
transaction over the period of 2015-16, for ten years. The renewals ensure we
continue to benefit from contract structures, including the proportion that is
linked to foreign currency.
Integral to the contractual terms is the focus on renewable energy solutions
across a significant number of sites, particularly in Nigeria. This is
expected to benefit the Group's operating costs in the medium term as the
reliance on diesel is reduced, while also advancing Airtel Africa's ambition
to drive reduced GHG emissions across the footprint, which remains a key
priority for its sustainability agenda. Importantly, there will be a neutral
to positive impact on free cash flow for the Group due to these renewals in
the near-term. The full detail of the financial impact has been previously
disclosed in the results for the six-month period ending 30 September 2024.
Kenya licence extension
On 6 September 2024, Airtel Kenya received confirmation from the regulator on
extension of existing Network Facility Provider, Application Service Provider,
Content Service Provider and Internationally Gateway Station and Service
licence as well as its spectrum in 900 MHz, 1800 MHz and 2100 MHz that were
due for renewal in January 2025 for a period of 24 months effective from
January 2025.
Repayment of remaining $550m bond achieving a zero-debt position at HoldCo
On 20 May 2024, the Company announced that it has repaid in full the 5.35%
Guaranteed Senior Notes maturing in May 2024. This bond repayment of $550m was
made exclusively out of the cash reserves at the HoldCo and is a continuation
of its strategy to reduce external foreign currency debt.
Retirement of the CEO of Airtel Africa plc and appointment of successor
On 2 January 2024, the Group announced the retirement of Chief Executive
Officer Olusegun "Segun" Ogunsanya and the appointment of Sunil Taldar. Sunil
Taldar was appointed to the Board as an executive director and assumed the
role of CEO on 1 July 2024, at which time Segun retired from the Board and
Airtel Africa plc. Following his retirement from Airtel Africa, Segun is
available to advise the Chairman, the Airtel Africa Board and chief executive
officer for a period of 12 months. Segun has also been appointed as Airtel
Africa Charitable Foundation's inaugural Chair.
Nigerian Communications Commission directive on subscriber registration
compliance
In December 2023, the Nigerian Communications Commission (NCC) informed Airtel
Nigeria, in an industry-wide directive, to undertake full network barring of
all SIMs that have failed to submit their National Identity Numbers (NIN) on
or before 28 February 2024. Likewise, customers that have submitted their NINs
but remain unverified are to be barred by 31 July 2024 (earlier deadline was
15 April 2024). Furthermore, guidelines were issued whereby no customer can
have more than four active SIMs and all such excess SIMs must be barred by 29
March 2024. This directive is part of the ongoing Federal Government NIN-SIM
harmonisation exercise requiring all subscribers to provide valid NIN
information to update SIM registration records.
Airtel Nigeria has complied with the directives issued and barred all
customers without NINs as well as customers with more than four active SIMs
which had a negligible impact on revenue.
Chad licence renewal
In July 2024, Airtel Tchad S.A ('Airtel Tchad'), a subsidiary of the Group,
was issued with a National Telecom Operator licence for 2G/3G and 4G network.
This licence renewal is with effect from April 2024 and is for a period of 10
years for a gross consideration of CFA54bn (approximately $90m).
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 www.airtel.africa
(http://www.airtel.africa/investors)
Financial review for the nine-month period ended 31 December 2024
Nigeria - Mobile services
Description Unit of Nine-month period ended Quarter ended
measure
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Summarised statement of
Operations
Revenue $m 738 1,237 (40.3%) 35.0% 249 359 (30.6%) 34.1%
Voice revenue (1) $m 315 587 (46.2%) 21.7% 106 172 (38.1%) 19.5%
Data revenue $m 344 539 (36.2%) 44.3% 115 154 (25.5%) 44.2%
Other revenue (2) $m 79 111 (29.1%) 59.9% 28 33 (15.3%) 63.2%
EBITDA $m 360 673 (46.4%) 20.6% 122 198 (38.7%) 17.8%
EBITDA margin % 48.8% 54.4% (557) bps (584) bps 48.8% 55.3% (645) bps (677) bps
Depreciation and amortisation $m (150) (223) (32.8%) 50.5% (58) (67) (13.7%) 67.2%
Operating profit $m 219 420 (47.8%) 22.2% 64 122 (47.7%) 4.2%
Capex $m 103 178 (42.0%) (42.0%) 28 69 (58.9%) (58.9%)
Operating free cash flow $m 257 495 (48.0%) 85.0% 94 129 (27.6%) 106.8%
Operating KPIs
Total customer base million 52.1 50.5 3.2% 52.1 50.5 3.2%
Data customer base million 28.2 26.1 8.2% 28.2 26.1 8.2%
Mobile services ARPU $ 1.6 2.8 (41.7%) 31.9% 1.7 2.4 (31.6%) 32.2%
((1) )Voice revenue includes inter-segment revenue of $1m in the nine-month
period ended 31 December 2023. Excluding inter-segment revenue, voice revenue
was $586m in the nine-month period ended 31 December 2023.
((2) )Other revenue includes inter-segment revenue of $2m in the nine-month
period ended 31 December 2024 and $1m in the prior period. Excluding
inter-segment revenue, other revenue was $77m in the nine-month period ended
31 December 2024 and $110m in the prior period.
Revenue grew by 35.0% in constant currency, largely driven by continued
strength in the demand for data services across the country. In reported
currency, revenues declined by 40.3% to $738m on account of the significant
devaluation of the Nigerian naira. The constant currency revenue growth was
driven by ARPU growth of 31.9%, while customers increased 3.2% despite the
disconnection of subscribers in compliance with the KYC directives issued by
the regulator.
Voice revenue grew by 21.7% in constant currency, driven by voice ARPU growth
of 18.9%.
Data revenue grew by 44.3% in constant currency, as a function of both data
customer and data ARPU growth of 8.2% and 31.4%, respectively. Data usage per
customer increased by 37.2% to 8.4 GB per month (from 6.2 GB in the prior
period), with smartphone penetration increasing 6.4% to reach 49.5%.
Smartphone data usage per customer reached 11.2 GB per month compared to 8.8
GB per month in the prior period.
EBITDA of $360m declined by 46.4% in reported currency but increased by 20.6%
in constant currency. The EBITDA margin declined by 557 basis points to 48.8%
reflecting continued inflationary pressures across the business, particularly
from the increase in diesel prices. Average diesel prices in Nigeria increased
by approximately 60% compared to the prior period. In Q3'25, EBITDA margins of
48.8% were 645 basis points below the prior year levels, reflecting both the
increased diesel prices and the $7m one-time opex benefit in Q3'24. Adjusting
for this one-time benefit, EBITDA margins in Q3'25 would have declined by 450
basis points from Q3'24 levels.
Operating free cash flow was $257m, up by 85.0% in constant currency, largely
due to the constant currency EBITDA growth while in reported currency,
operating free cash flow declined by 48.0% due to lower reported currency
EBITDA following the significant Nigerian naira devaluation over the year.
East Africa - Mobile services (1)
Description Unit of Nine-month period ended Quarter ended
measure
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Summarised statement of
operations
Revenue $m 1,367 1,227 11.4% 19.3% 482 405 19.0% 19.8%
Voice revenue (2) $m 674 651 3.5% 11.5% 235 211 11.1% 12.6%
Data revenue $m 555 465 19.4% 27.0% 200 155 28.9% 28.7%
Other revenue (3) $m 138 111 24.4% 33.1% 47 39 22.7% 23.2%
EBITDA $m 650 603 7.9% 16.3% 232 195 19.1% 20.3%
EBITDA margin % 47.6% 49.2% (156) bps (124) bps 48.2% 48.1% 3 bps 20 bps
Depreciation and amortisation $m (253) (216) 17.4% 22.4% (95) (71) 33.7% 33.0%
Operating profit $m 355 351 1.0% 11.8% 124 111 11.3% 13.7%
Capex $m 218 177 22.9% 22.9% 62 71 (12.8%) (12.8%)
Operating free cash flow $m 432 426 1.6% 13.2% 170 124 37.3% 39.6%
Operating KPIs
Total customer base million 76.5 69.0 10.8% 76.5 69.0 10.8%
Data customer base million 31.3 26.6 17.5% 31.3 26.6 17.5%
Mobile services ARPU $ 2.1 2.1 1.1% 8.3% 2.1 2.0 8.5% 9.2%
((1) ) The East Africa business region includes Kenya, Malawi, Rwanda,
Tanzania, Uganda and Zambia.
((2) )Voice revenue includes inter-segment revenue of $1m in the
nine-month period ended 31 December 2024 and in the prior period. Excluding
inter-segment revenue, voice revenue was $673m in the nine-month period ended
31 December 2024 and $650m in the prior period.
((3) )Other revenue includes inter-segment revenue of $10m in the
nine-month period ended 31 December 2024 and $9m in the prior period.
Excluding inter-segment revenue, other revenue was $128m in nine-month period
ended 31 December 2024 and $102m in the prior period.
East Africa revenue grew by 11.4% in reported currency to $1,367m, and by
19.3% in constant currency. The constant currency growth was made up of voice
revenue growth of 11.5%, data revenue growth of 27.0% and other revenue growth
of 33.1%. In constant currency, revenue growth accelerated from 18.5% in Q2'25
to 19.8% in Q3'25.
Voice revenues were supported by customer base growth of 10.8% and voice ARPU
growth of 1.2%. The customer base growth was largely driven by expansion of
both increased network coverage and the increasing scale of the distribution
network.
Data customer base growth of 17.5% and data ARPU growth of 10.8% drove the
strong performance in data revenues. Our continued investment in the network
and expansion of 4G network infrastructure resulted in 99.5% of our East
Africa network sites on 4G, compared to 95.1% in the prior period.
Furthermore, 1,158 sites are 5G enabled in four markets. Data usage per
customer increased to 6.1 GB per customer per month, up by 30.3%, with
smartphone penetration increasing 4.7% to reach 41.6%. Smartphone data usage
per customer reached 7.6 GB per month compared to 6.2 GB per month in the
prior period.
EBITDA increased to $650m, up by 7.9% in reported currency and up by 16.3% in
constant currency. EBITDA margins of 47.6% declined by 156 basis points as a
result of rising fuel prices in several of our key markets. However, in Q3'25,
EBITDA margin improved slightly as compared to Q2'25.
Operating free cash flow was $432m, up by 13.2% in constant currency, due
largely to EBITDA growth, partially offset by increased capex.
The differential in growth rates (between constant currency and reported
currency) is primarily contributed by the devaluation in the Zambian kwacha
and the Malawian kwacha, partially offset by the Kenyan shilling appreciation.
Francophone Africa - Mobile services (1)
Description Unit of Nine-month period ended Quarter ended
measure
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Summarised statement of
operations
Revenue $m 968 912 6.1% 6.4% 332 307 8.0% 8.5%
Voice revenue (2) $m 469 473 (0.7%) (0.4%) 156 156 0.0% 0.7%
Data revenue $m 407 339 19.9% 20.3% 147 118 23.7% 24.3%
Other revenue (3) $m 92 100 (8.5%) (8.2%) 29 33 (11.7%) (11.2%)
EBITDA $m 373 395 (5.6%) (5.3%) 129 130 (1.2%) (0.6%)
EBITDA margin % 38.5% 43.2% (476) bps (476) bps 38.8% 42.4% (359) bps (354) bps
Depreciation and amortisation $m (172) (156) 10.6% 10.9% (57) (52) 9.6% 10.4%
Operating profit $m 160 203 (21.4%) (21.2%) 59 66 (10.2%) (9.6%)
Capex $m 105 109 (4.3%) (4.3%) 38 32 18.4% 18.4%
Operating free cash flow $m 268 286 (6.1%) (5.7%) 91 98 (7.6%) (6.8%)
Operating KPIs
Total customer base million 34.5 31.6 9.1% 34.5 31.6 9.1%
Data customer base million 11.9 10.0 19.0% 11.9 10.0 19.0%
Mobile services ARPU $ 3.2 3.4 (3.6%) (3.3%) 3.2 3.3 (1.2%) (0.6%)
((1)) The Francophone Africa business region includes Chad, the Democratic
Republic of the Congo, Gabon, Madagascar, Niger, Republic of the Congo and the
Seychelles.
((2) )Voice revenue includes inter-segment revenue of $1m in the nine-month
period ended 31 December 2024 and $2m in the prior period. Excluding
inter-segment revenue, voice revenue was $468m in the nine-month period ended
31 December 2024 and $471m in the prior period.
((3) )Other revenue includes inter-segment revenue of $2m in the nine-month
period ended 31 December 2024 and in the prior period. Excluding inter-segment
revenue, other revenue was $90m in the nine-month period ended 31 December
2024 and $98m in the prior period.
Revenue grew by 6.1% in reported currency and by 6.4% in constant currency.
Revenue growth remains impacted due to high inflation in key markets impacting
consumer spend, though it has improved from 7.1% in Q2'25 to 8.5% in Q3'25 on
constant currency basis.
Voice revenue declined by 0.4% in constant currency, as customer base growth
of 9.1% was more than offset by a decline in voice ARPU. Voice ARPU was
negatively impacted by a reduction in the interconnect rate by the regulator
in the Republic of Congo and Niger coupled with increased competitive
intensity in pricing in a few markets. In Q3'25 voice revenue returned to
growth in constant currency.
Data revenue grew by 20.3% in constant currency, supported by customer base
growth of 19.0%. Our continued 4G network rollout resulted in an increase in
total data usage of 41.5% and per customer data usage increase of 24%. Data
usage per customer increased to 5.3 GB per month (up from 4.3 GB in the prior
period), with smartphone penetration increasing 5% to reach 42%. Smartphone
data usage per customer reached 6.4 GB per month compared to 5.3 GB per month
in the prior period.
EBITDA at $373m declined by 5.6% and 5.3% in reported and constant currency,
respectively. The EBITDA margin declined to 38.5%, a decline of 476 basis
points, impacted by an increase in fixed frequency fees in a key market,
rising energy costs combined with a slowdown in revenue growth in key markets.
Operating free cash flow of $268m declined by 5.7% in constant currency, due
to the decline in EBITDA, partially offset by lower capex.
Mobile services
Description Unit of measure Nine-month period ended Quarter ended
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Summarised statement of operations
Revenue (1) $m 3,077 3,375 (8.8%) 18.8% 1,063 1,071 (0.7%) 19.6%
Voice revenue $m 1,456 1,707 (14.7%) 9.8% 496 538 (7.7%) 10.4%
Data revenue $m 1,306 1,343 (2.8%) 29.4% 461 428 7.9% 31.4%
Other revenue $m 315 325 (3.2%) 23.4% 106 105 0.3% 19.4%
EBITDA $m 1,393 1,672 (16.7%) 11.5% 486 523 (7.0%) 14.5%
EBITDA margin % 45.3% 49.5% (427) bps (297) bps 45.7% 48.8% (310) bps (205) bps
Depreciation and amortisation $m (575) (595) (3.3%) 25.6% (210) (190) 10.4% 34.8%
Operating profit $m 744 976 (23.8%) 6.6% 249 298 (16.2%) 6.4%
Capex $m 426 464 (8.3%) (8.3%) 128 172 (25.5%) (25.5%)
Operating free cash flow $m 967 1,208 (19.9%) 22.5% 358 351 2.0% 39.3%
Operating KPIs
Mobile voice
Customer base million 163.1 151.2 7.9% 163.1 151.2 7.9%
Voice ARPU $ 1.0 1.3 (20.7%) 2.1% 1.0 1.2 (13.7%) 3.3%
Mobile data
Data customer base million 71.4 62.7 13.8% 71.4 62.7 13.8%
Data ARPU $ 2.2 2.6 (13.6%) 15.0% 2.3 2.3 (3.4%) 17.8%
((1) )Mobile service revenue after inter-segment eliminations was $3,070m
in the nine-month period ended 31 December 2024 and $3,370m in the prior
period.
Overall revenue from mobile services declined by 8.8% in reported currency
with growth of 18.8% in constant currency. In Q3'25, constant currency revenue
growth accelerated to 19.6% from 19.3% in the prior quarter. The constant
currency growth was evident across all regions and services.
Voice revenue grew by 9.8% in constant currency, supported primarily by the
continued growth in the customer base as we continue to invest in our network
and enhance our distribution infrastructure. The voice ARPU growth of 2.1% was
supported by an increase in voice usage per customer of 4.9%, reaching 300
minutes per customer per month, with total minutes on the network increasing
by 12.9%.
Data revenue grew by 29.4% in constant currency, driven by both customer base
growth of 13.8% and data ARPU growth of 15.0%. The customer base growth was
recorded across all the regions supported by the expansion of our 4G network.
97% of our total sites are now on 4G, compared with 94% in the prior period.
5G is operational across five countries, with 1,393 sites deployed. Data usage
per customer increased to 6.9 GB per customer per month (from 5.2 GB in the
prior period), with smartphone penetration increasing 5.2% to reach 44.2%.
Smartphone data usage per customer reached 8.8 GB per month compared to 7.1 GB
per month in the prior period. Data revenue contributed to 42.4% of total
mobile services revenue, up from 39.8% in the prior period.
EBITDA was $1,393m, down 16.7% in reported currency, and up by 11.5% in
constant currency. The EBITDA margin declined by 427 basis points YoY to
45.3%, a decline of 297 basis points in constant currency, largely due to
increase in fuel prices across key markets. In Q3'25, EBITDA margins of 45.7%
were stable on the previous quarter (Q2'25).
Operating free cash flow was $967m, up by 22.5% in constant currency, due to
the increased constant currency EBITDA.
Mobile money
Description Unit of measure Nine-month period ended Quarter ended
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Summarised statement of operations
Revenue (1) $m 731 631 15.8% 29.6% 265 215 23.4% 31.2%
Nigeria $m 3 1 - - 1 0 - -
East Africa $m 549 481 14.0% 32.1% 200 162 23.6% 33.5%
Francophone Africa $m 179 149 20.8% 21.1% 64 53 21.9% 22.6%
EBITDA $m 387 327 18.4% 32.6% 140 113 24.0% 32.0%
EBITDA margin % 53.0% 51.8% 115 bps 120 bps 52.9% 52.7% 25 bps 35 bps
Depreciation and amortisation $m (16) (14) 10.4% 29.7% (6) (5) 16.8% 30.4%
Operating profit $m 361 303 19.0% 33.2% 131 105 24.5% 32.5%
Capex $m 15 17 (10.7%) (10.7%) 5 6 (22.9%) (22.9%)
Operating free cash flow $m 372 310 19.9% 35.2% 135 107 26.8% 35.5%
Operating KPIs
Mobile money customer base Million 44.3 37.5 18.3% 44.3 37.5 18.3%
Transaction value $bn 100.2 84.6 18.4% 31.3% 36.4 28.9 25.8% 33.3%
Mobile money ARPU $ 2.0 2.0 (0.1%) 11.8% 2.1 1.9 6.9% 13.5%
((1)) Mobile money service revenue post inter-segment eliminations with mobile
services was $568m in the nine-month period ended 31 December 2024 and $491m
in the prior year.
Mobile money revenue grew by 15.8% in reported currency, with constant
currency growth of 29.6%. The constant currency mobile money revenue growth
was driven by revenue growth in both East Africa and Francophone Africa of
32.1% and 21.1%, respectively. In Nigeria, we continue to focus on customer
acquisitions with 1.5 million active customers registered for mobile money
services at the end of December 2024.
The constant currency revenue growth of 29.6% was driven by both our customer
base growth of 18.3% and mobile money ARPU growth of 11.8%. The expansion of
our distribution network, particularly our exclusive channels of Airtel Money
branches and kiosks, supported customer base growth of 18.3%. The mobile money
ARPU growth of 11.8% was primarily driven by transaction value per customer
growth of 13.3% in constant currency, to $274 per customer per month.
Q3'25 annualised transaction value amounted to $146bn in reported currency,
with mobile money revenue contributing 20.1% of total Group revenue during the
nine-month period ended 31 December 2024.
EBITDA was $387m, up by 18.4% and 32.6% in reported and constant currency,
respectively. The EBITDA margin reached 53.0%, an improvement of 120 basis
points in constant currency and 115 basis points in reported currency, driven
by continued operating leverage.
The differential in growth rates (between constant currency and reported
currency) is primarily as the result of devaluation in the Zambian kwacha and
the Malawi kwacha.
Regional performance
Nigeria
Description Unit of measure Nine-month period ended Quarter ended
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Revenue $m 740 1,238 (40.2%) 35.3% 250 359 (30.5%) 34.4%
Voice revenue $m 315 587 (46.2%) 21.7% 106 172 (38.1%) 19.5%
Data revenue $m 344 539 (36.2%) 44.3% 115 154 (25.5%) 44.2%
Mobile money revenue $m 3 1 - - 1 0 - -
Other revenue $m 79 112 (29.3%) 59.7% 28 33 (15.4%) 62.8%
EBITDA $m 359 667 (46.3%) 21.0% 121 197 (38.6%) 18.0%
EBITDA margin % 48.5% 53.9% (545) bps (573) bps 48.6% 54.9% (639) bps (672) bps
Operating KPIs
ARPU $ 1.6 2.8 (41.6%) 32.1% 1.7 2.4 (31.5%) 32.4%
East Africa
Description Unit of measure Nine-month period ended Quarter ended
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Revenue $m 1,800 1,610 11.8% 22.2% 641 534 20.0% 22.9%
Voice revenue $m 674 651 3.5% 11.5% 235 211 11.1% 12.6%
Data revenue $m 555 465 19.4% 27.0% 200 155 28.9% 28.7%
Mobile money revenue $m 549 481 14.0% 32.1% 200 162 23.6% 33.5%
Other revenue $m 132 106 24.4% 33.1% 46 37 22.6% 23.0%
EBITDA $m 951 864 10.1% 21.6% 342 284 20.7% 24.7%
EBITDA margin % 52.8% 53.7% (82) bps (24) bps 53.4% 53.1% 32 bps 77 bps
Operating KPIs
ARPU $ 2.7 2.7 1.5% 10.9% 2.8 2.6 9.3% 12.0%
Francophone Africa
Description Unit of measure Nine-month period ended Quarter ended
Dec-24 Dec-23 Reported Constant Dec-24 Dec-23 Reported Constant
currency currency currency currency
change
change
change
change
Revenue $m 1,093 1,014 7.8% 8.2% 377 344 9.5% 10.2%
Voice revenue $m 469 473 (0.7%) (0.4%) 156 156 0.0% 0.7%
Data revenue $m 407 339 19.9% 20.3% 147 118 23.7% 24.3%
Mobile money revenue $m 179 149 20.8% 21.1% 64 53 21.9% 22.6%
Other revenue $m 91 99 (8.8%) (8.6%) 29 33 (12.1%) (11.6%)
EBITDA $m 470 475 (1.0%) (0.8%) 163 159 2.7% 3.3%
EBITDA margin % 43.0% 46.8% (386) bps (386) bps 43.3% 46.1% (287) bps (285) bps
Operating KPIs
ARPU $ 3.6 3.7 (2.0%) (1.7%) 3.7 3.7 0.3% 0.9%
Consolidated performance
Description UoM Nine-month period ended December 2024 Nine-month period ended December 2023
Mobile services Mobile money Unallocated Eliminations Total Mobile services Mobile money Unallocated Eliminations Total
Revenue $m 3,077 731 - (170) 3,638 3,375 631 - (145) 3,861
Voice revenue $m 1,456 - - 1,456 1,707 - - 1,707
Data revenue $m 1,306 - - 1,306 1,343 - - 1,343
Other revenue $m 315 - (7) 308 325 - (5) 320
EBITDA $m 1,393 387 (99) - 1,681 1,672 327 (91) - 1,908
EBITDA margin % 45.3% 53.0% 46.2% 49.5% 51.8% 49.4%
Depreciation and amortisation $m (575) (16) (9) - (600) (595) (14) (6) - (615)
Operating profit $m 744 361 (24) - 1,081 976 303 14 - 1,293
Risk factors
The risk factors summarised below relate to the Group's business and industry
in which it operates. Additional risks and uncertainties relating to the Group
that are currently unknown to the Group, or those the Group currently deems
immaterial, may, individually or cumulatively, also have a material adverse
impact on the Group's business, results of operations and financial position.
The Group's principal and emerging risks and risk management process are
described in pages 72-79 of our Annual Report and Accounts 2024. Based on the
Group's assessment, there has been no changes to the group's principal risks
in the period.
Summary of principal risks
The Group continually monitors its external and internal environment to
identify risks which have the ability to impact its operations, financial
performance or the achievement of its objectives.
1. We operate in a competitive environment with the potential for
aggressive competition by existing players, or the entry of new players, which
could both put a downward pressure on prices, adversely affecting our revenue
and profitability.
2. Failure to innovate through simplifying the customer experience,
developing adequate digital touchpoints in line with changing customer needs
and competitive landscape could lead to loss of customers and market share.
3. Global geopolitical and regional tensions have the potential to
impact our business directly and indirectly due to the interconnectedness of
the global supply chain. Relatedly, adverse macroeconomic conditions such as
rising inflation and increased cost of living not only puts pressure on the
disposable income of our customers but also increases the cost of inputs for
our business negatively impacting sales and profitability.
4. Cybersecurity threats through internal or external sabotage or system
vulnerabilities could potentially result in customer data breaches and/or
service downtimes.
5. Adverse changes in our external business environment and
macro-economic conditions such as supply chain disruptions, increase in global
commodity prices and inflationary pressures could lead to a significant
increase in our operating cost structure while also negatively impacting the
disposable income of consumers. These adverse economic conditions therefore
not only put pressure on our profitability but also on customer usage for our
services.
6. Shortages of skilled telecommunications professionals in some markets
and the inability to identify and develop successors for key leadership
positions could both lead to disruptions in the execution of our corporate
strategy.
7. Our internal control environment is subject to the risk that controls
may become inadequate due to changes in internal or external conditions, new
accounting requirements, delays, or inaccuracies in reporting.
8. Our ability to provide quality of service to our customers and meet
quality of service (QoS) requirements depends on the robustness and resilience
of our technology stack and ecosystem encompassing hardware, software,
products, services, and applications and our ability to respond appropriately
to any disruptions. However, telecommunications networks are subject to the
risks of technical failures, aging infrastructure, human error, wilful acts of
destruction or natural disasters.
9. We operate in a diverse and dynamic legal, tax and regulatory
environment. Adverse changes in the political, macro-economic and policy
environment could have a negative impact on our ability to achieve our
strategy. While the group makes every effort to comply with its legal and
regulatory obligations in all its operating jurisdictions in line with the
group's risk appetite, we are however continually faced with an uncertain and
constantly evolving legal, regulatory, and policy environment in some of the
markets where we operate.
10. Our multinational footprint means we are constantly exposed to the risk
of adverse currency fluctuations and the macroeconomic conditions in the
markets where we operate. We derive revenue and incur costs in local
currencies where we operate, but we also incur costs in foreign currencies,
mainly from buying equipment and services from manufacturers and technology
service providers. That means adverse movements in exchange rates between the
currencies in our OpCos and the US dollar could have a negative effect on our
liquidity and financial condition. In some markets, we face instances of
limited supply of foreign currency within the local monetary system. This not
only constrains our ability to fully benefit at Group level from strong cash
generation by those OpCos but also impacts our ability to make timely foreign
currency payments to our international suppliers.
Given the severity of this risk, specifically in some of our OpCos, the Group
management continuously monitors the potential impact of this risk of exchange
rate fluctuations based on the following methodology:
a) Comparing the average devaluation of each currency in the markets in
which the Group operates against US dollar on 3-year and 5-year historic basis
and onshore forward exchange rates over a 1-year period.
b) If either of the above devaluation is higher than 5% per annum,
management selects the highest of these exchange rates.
c) Management then uses this exchange rate to monitor the potential
impact of using such rate on the Group's income statement so that the Group
can actively monitor and assess the impact on the Group's financials due to
exchange rate fluctuations.
Additionally, for our Nigerian operations, management uses different
sensitivity analysis for scenario planning purposes which includes the recent
impact of the naira devaluation.
With respect to currency devaluation sensitivity going forward, on a 12-month basis assuming that the USD appreciation occurs at the beginning of the period, a further 1% USD appreciation across all currencies in our OpCos would have a negative impact of $44m - $46m on revenues, $21m - $22m on EBITDA and $26m - $28m on foreign exchange loss (excluding derivatives). Our largest exposure is to the Nigerian naira, for which on a similar basis, a further 1% USD appreciation would have a negative impact of $11m - $12m on revenues, $5m - $6m on EBITDA and $14m - $15m on foreign exchange loss (excluding derivatives).
This does not represent any guidance and is being used solely to illustrate
the potential impact of further currency devaluation on the Group for the
purpose of exchange rate risk management. The accounting under IFRS is based
on exchange rates in line with the requirements of IAS 21 'The Effect of
Changes in Foreign Exchange' and does not factor in the devaluation mentioned
above.
Based on above-mentioned specific methodology for the identified OpCos,
management evaluates specific mitigation actions based on available mechanisms
in each of the geographies. For further details on such mitigation action,
refer to the risk section of the Annual Report and Accounts 2024 which can be
downloaded from our website www.airtel.africa.
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 underlying trends, performance and position of the Group.
APMs are also used to enhance the comparability of information between
reporting periods and geographical units (such as like-for-like sales), by
adjusting for non-recurring or uncontrollable factors which affect IFRS
measures, to aid users in understanding the Group's performance. Consequently,
APMs are used by the directors and management for performance analysis,
planning, reporting and incentive-setting purposes.
The directors believe the following metrics to be the APMs used by the Group
to help evaluate growth trends, establish budgets and assess operational
performance and efficiencies. These measures provide an enhanced understanding
of the Group's results and related trends, therefore increasing transparency
and clarity into the core results of the business.
Changes in APM
During the current period, the Group has included 'Lease-adjusted leverage' as
an additional APM which reduces the volatility in the leverage ratio
associated with lease accounting under IFRS16, improves comparability between
periods and reflects the leverage basis the Group's financial market debt
position.
The following metrics are useful in evaluating the Group's operating
performance:
APM Closest equivalent IFRS measure Adjustments to reconcile to IFRS measure Definition and purpose
EBITDA and margin Operating profit · Depreciation and amortisation The Group defines EBITDA as operating profit/(loss) for the period before
depreciation and amortisation.
The Group defines EBITDA margin as EBITDA divided by revenue.
EBITDA and margin are measures used by the directors to assess the trading
performance of the business and are therefore the measure of segment profit
that the Group presents under IFRS. EBITDA and margin are also presented on a
consolidated basis because the directors believe it is important to consider
profitability on a basis consistent with that of the Group's operating
segments. When presented on a consolidated basis, EBITDA and margin are APMs.
Depreciation and amortisation is a non-cash item which fluctuates depending on
the timing of capital investment and useful economic life. Directors believe
that a measure which removes this volatility improves comparability of the
Group's results period on period and hence is adjusted to arrive at EBITDA and
margin.
Underlying profit / (loss) before tax Profit / (loss) before tax · Exceptional items The Group defines underlying profit/(loss) before tax as profit/(loss) before
tax adjusted for exceptional items.
The directors view underlying profit/(loss) before tax to be a meaningful
measure to analyse the Group's profitability.
Effective tax rate Reported tax rate · Exceptional items The Group defines effective tax rate as reported tax rate (reported tax charge
divided by reported profit before tax) adjusted for exceptional items, foreign
· Foreign exchange rate movements exchange rate movements and one-off tax items of prior period adjustment, tax
settlements and impact of permanent differences on tax.
· One-off tax impact of prior period, tax litigation settlement and
impact of tax on permanent differences This provides an indication of the current on-going tax rate across the Group.
Foreign exchange rate movements are specific items that are non-tax deductible
in a few of the entities which are loss making and/or where DTA is not yet
triggered and hence are considered to hinder comparison of the Group's
effective tax rate on a period-to-period basis and therefore excluded to
arrive at effective tax rate.
One-off tax impact on account of prior period adjustment, any tax litigation
settlement and tax impact on permanent differences are additional specific
items that because of their size and frequency in the results, are considered
to hinder comparison of the Group's effective tax rate on a period-to-period
basis.
Underlying profit/(loss) after tax Profit/(loss) for the period · Exceptional items The Group defines underlying profit/(loss) after tax as profit/(loss) for the
period adjusted for exceptional items.
The directors view underlying profit/(loss) after tax to be a meaningful
measure to analyse the Group's profitability.
Earnings per share before exceptional items EPS · Exceptional items The Group defines earnings per share before exceptional items as profit/(loss)
for the period before exceptional items attributable to owners of the company
divided by the weighted average number of ordinary shares in issue during the
financial period.
This measure reflects the earnings per share before exceptional items for each
share unit of the company.
Earnings per share before exceptional items and derivative and foreign EPS · Exceptional items The Group defines earnings per share before exceptional items and derivative
exchange losses
and foreign exchange losses as profit/(loss) for the period before exceptional
· Derivative and foreign exchange losses items and derivative and foreign exchange losses (net of tax) attributable to
owners of the company divided by the weighted average number of ordinary
shares in issue during the financial period.
This measure reflects the earnings per share before exceptional items and
derivative and foreign exchange losses for each share unit of the company.
Derivative and foreign exchange losses are due to revaluation of US dollar
balance sheet liabilities and derivatives as a result of currency devaluation.
Operating free cash flow Cash generated from operating activities · Income tax paid The Group defines operating free cash flow as net cash generated from
operating activities before income tax paid, changes in working capital, other
· Changes in working capital non-cash items, non-operating income, exceptional items, and after capital
expenditures. The Group views operating free cash flow as a key liquidity
· Other non-cash items measure, as it indicates the cash available to pay dividends, repay debt or
make further investments in the Group.
· Non-operating income
· Exceptional items
· Capital expenditures
Net debt and leverage ratio · Borrowings · Lease liabilities
· Operating profit · Cash and cash equivalent The Group defines net debt as borrowings including lease liabilities less cash
and cash equivalents, term deposits with banks, deposits given against
· Term deposits with banks borrowings/non-derivative financial instruments, processing costs related to
borrowings and fair value hedge adjustments.
· Deposits given against borrowings/ non-derivative financial instruments
The Group defines leverage ratio as net debt divided by EBITDA for the
· Fair value hedges 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.
Lease- adjusted leverage · Borrowings · Cash and cash equivalent The Group defines lease-adjusted leverage ratio as Lease-adjusted net debt
divided by Lease-adjusted EBITDA (EBITDAaL) for the preceding 12 months,
· Operating profit · Term deposits with banks where:
· Deposits given against borrowings/ non-derivative financial - Lease-adjusted net debt is defined as borrowings excluding lease
instruments liabilities less cash and cash equivalents, term deposits with banks, deposits
given against borrowings/non-derivative financial instruments, processing
· Fair value hedges costs related to borrowings and fair value hedge adjustments.
· Depreciation and amortisation - Lease-adjusted EBITDA is defined as operating profit/(loss) for
the period before depreciation and amortisation less principal repayments due
· Principal repayments due on right-of-use assets on right-of-use assets during the period and interest on lease liabilities
· Interest on lease liabilities Lease-adjusted leverage is a prominent metric used by debt rating agencies and
the capital markets. This APM reduces the volatility in the leverage ratio
associated with lease accounting under IFRS16, improves comparability between
periods and reflects the Group's financial market debt position.
Accordingly, the Directors view lease adjusted leverage as a meaningful
measure to analyse the Group's performance.
Return on capital employed No direct equivalent · Exceptional items to arrive at EBIT The Group defines return on capital employed ('ROCE') as EBIT divided by
average capital employed.
The directors view ROCE as a financial ratio that measures the Group's
profitability and the efficiency with which its capital is being utilised.
The Group defines EBIT as operating profit/(loss) for the period.
Capital employed is defined as sum of equity attributable to owners of the
company (grossed up for put option provided to minority shareholders to
provide them liquidity as part of the sale agreements executed with them
during year ended 31 March 2022), non-controlling interests and net debt.
Average capital employed is average of capital employed at the closing and
beginning of the relevant period.
For quarterly computations, ROCE is calculated by dividing EBIT for the
preceding 12 months by the average capital employed (being the average of the
capital employed averages for the preceding four quarters).
( )
Some of the Group's IFRS measures and APMs are translated at constant currency
exchange rates to measure the organic performance of the Group. In determining
the percentage change in constant currency terms, both current and previous
financial reporting period's results have been converted using exchange rates
prevailing as on 31 March 2024 for all countries. Reported currency percentage
change is derived based on the average actual periodic exchange rates for that
financial period. Variances between constant currency and reported currency
percentages are due to exchange rate movements between the previous financial
reporting period and the current period. The constant currency numbers only
reflect the retranslation of reported numbers into exchange rates as of 31
March 2024 and are not intended to represent the wider impact that currency
changes have on the business.
Statement of Director's Responsibilities
We confirm that to the best of our knowledge:
a) the interim condensed financial statements, prepared in accordance
with the relevant financial reporting framework, give a true and fair view of
the assets, liabilities, financial position and profit or loss of the company
and the undertakings included in the consolidation taken as a whole;
b) the management report includes a fair review of the development and
performance of the business and the position of the company, and the
undertakings included in the consolidation taken as a whole, together with a
summary description of the principal risks and uncertainties that they face;
and
c) the interim condensed financial statements include disclosure of
related parties' transactions that have taken place during the period and that
have materially affected the financial position or performance of the company.
This responsibility statement was approved by the board of directors on 29
January 2025 and is signed on its behalf by:
Sunil Taldar
Chief Executive Officer
29 January 2025
Glossary
Technical and Industry Terms
4G data customer A customer having a 4G handset and who has used at least 1 MB on any of the
Group's GPRS, 3G and 4G network in the last 30 days.
Airtel Money (mobile money) Airtel Money is the brand name for Airtel Africa's mobile money products and
services. The term is used interchangeably with 'mobile money' when referring
to our mobile money business, finance, operations and activities.
Airtel Money ARPU Mobile money average revenue per user per month. This is derived by dividing
total mobile money revenue during the relevant period by the average number of
active mobile money customers and dividing the result by the number of months
in the relevant period.
Airtel Money customer base Total number of active subscribers who have enacted any mobile money usage
event in last 30 days.
Airtel Money customer penetration The proportion of total Airtel Africa active mobile customers who use mobile
money services. Calculated by dividing the mobile money customer base by the
Group's total customer base.
Airtel Money transaction value Any financial transaction performed on Airtel Africa's mobile money platform.
Airtel Money transaction value per customer per month Calculated by dividing the total mobile money transaction value on the Group's
mobile money platform during the relevant period by the average number of
active mobile money customers and dividing the result by the number of months
in the relevant period.
Airtime credit service A value-added service where the customer can take an airtime credit and
continue to use our voice and data services, with the credit recovered through
subsequent customer recharge. This is classified as a Mobile Services product
(not a Mobile Money product).
ARPU Average revenue per user per month. This is derived by dividing total revenue
during the relevant period by the average number of customers during the
period and dividing the result by the number of months in the relevant period.
Average customers The average number of active customers for a period. Derived from the monthly
averages during the relevant period. Monthly averages are calculated using the
number of active customers at the beginning and the end of each month.
Capital expenditure An alternative performance measure (non-GAAP). Defined as investment in gross
fixed assets (both tangible and intangible but excluding spectrum and
licences) plus capital work in progress (CWIP), excluding provisions on CWIP
for the period.
Constant currency The Group has presented certain financial information that is calculated by
translating the results at a fixed 'constant currency' exchange rate, which is
done to measure the organic performance of the Group and represents the
performance of the business in a better way. Constant currency amounts and
growth rates are calculated using closing exchange rates as of 31 March 2024
for all reporting regions and service segments.
Customer Defined as a unique active subscriber with a unique mobile telephone number
who has used any of Airtel's services in the last 30 days.
Customer base The total number of active subscribers that have used any of our services
(voice calls, SMS, data usage or mobile money transaction) in the last 30
days.
Data ARPU Data average revenue per user per month. Data ARPU is derived by dividing
total data revenue during the relevant period by the average number of data
customers and dividing the result by the number of months in the relevant
period.
Data customer base The total number of subscribers who have consumed at least 1 MB on the Group's
GPRS, 3G or 4G network in the last 30 days.
Data customer penetration The proportion of customers using data services. Calculated by dividing the
data customer base by the total customer base.
Data usage per customer per month Calculated by dividing the total MBs consumed on the Group's network during
the relevant period by the average data customer base over the same period and
dividing the result by the number of months in the relevant period.
Digitalisation We use the term digitalisation in its broadest sense to encompass both
digitisation actions and processes that convert analogue information into a
digital form and thereby bring customers into the digital environment, and the
broader digitalisation processes of controlling, connecting and planning
processes digitally; the processes that effect digital transformation of our
business, and of industry, economics and society as a whole through bringing
about new business models, socio-economic structures and organisational
patterns.
Diluted earnings per share Diluted EPS is calculated by adjusting the profit for the year attributable to
the shareholders and the weighted average number of shares considered for
deriving basic EPS, for the effects of all the shares that could have been
issued upon conversion of all dilutive potential shares. The dilutive
potential shares are adjusted for the proceeds receivable had the shares
actually been issued at fair value. Further, the dilutive potential shares are
deemed converted as at beginning of the period, unless issued at a later date
during the period.
Earnings per share (EPS) EPS is calculated by dividing the profit for the period attributable to the
owners of the company by the weighted average number of ordinary shares
outstanding during the period.
Foreign exchange rate movements for non-DTA operating companies Foreign exchange rate movements are specific items that are non-tax deductible
in a few of our operating entities, hence these hinder a like-for-like
and holding companies comparison of the Group's effective tax rate on a period-to-period basis and
are therefore excluded when calculating the effective tax rate.
Indefeasible Rights of Use (IRU) A standard long-term leasehold contractual agreement that confers upon the
holder the exclusive right to use a portion of the capacity of a fibre route
for a stated period.
Information and communication technologies (ICT) ICT refers to all communication technologies, including the internet, wireless
networks, cell phones, computers, software, middleware, videoconferencing,
social networking, and other media applications and services.
Interconnect usage charges (IUC) Interconnect usage charges are the charges paid to the telecom operator on
whose network a call is terminated.
Lease liability Lease liability represents the present value of future lease payment
obligations.
Leverage An alternative performance measure (non-GAAP). Leverage (or leverage ratio) is
calculated by dividing net debt at the end of the relevant period by the
EBITDA for the preceding 12 months.
Market Debt Market debt is defined as Borrowings from Banks or Financial Institutions and
debt capital market issuances in the form of Bonds.
Minutes of usage Minutes of usage refer to the duration in minutes for which customers use the
Group's network for making and receiving voice calls. It includes all incoming
and outgoing call minutes, including roaming calls.
Mobile services Mobile services are our core telecom services, mainly voice and data services,
but also including revenue from tower operation services provided by the Group
and excluding mobile money services.
Net debt An alternative performance measure (non-GAAP). The Group defines net debt as
borrowings including lease liabilities less cash and cash equivalents, term
deposits with banks, processing costs related to borrowings and fair value
hedge adjustments.
Net debt to EBITDA (LTM) An alternative performance measure (non-GAAP) Calculated by dividing net debt
as at the end of the relevant period by EBITDA for the preceding 12 months
(from the end of the relevant period). This is also referred to as the
leverage ratio.
Lease-adjusted Net Debt An alternative performance measure (non-GAAP). The Group defines
Lease-adjusted net debt as borrowings excluding lease liabilities less cash
and cash equivalents, term deposits with banks, processing costs related to
borrowings and fair value hedge adjustments.
Lease adjusted leverage (LTM) An alternative performance measure (non-GAAP) Calculated by dividing
Lease-adjusted net debt as at the end of the relevant period by Lease-adjusted
EBITDA (EBITDAaL) for the preceding 12 months (from the end of the relevant
period).
Net monetary gain relating to hyperinflationary accounting Net monetary gain relating to hyperinflationary accounting is computed as
difference resulting from the restatement of non-monetary net assets, equity
and items in the statement of comprehensive income due to application of IAS
29 hyperinflationary accounting.
Network towers or 'sites' Physical network infrastructure comprising a base transmission system (BTS)
which holds the radio transceivers (TRXs) that define a cell and coordinates
the radio link protocols with the mobile device. It includes all ground-based,
roof top and in-building solutions.
Operating company (OpCo) Operating company (or OpCo) is a defined corporate business unit, providing
telecoms services and mobile money services in the Group's footprint.
Operating free cash flow An alternative performance measure (non-GAAP). Calculated by subtracting
capital expenditure from EBITDA.
Operating leverage An alternative performance measure (non-GAAP). Operating leverage is a measure
of the operating efficiency of the business. It is calculated by dividing
operating expenditure (excluding regulatory charges) by total revenue.
Operating profit Operating profit is a GAAP measure of profitability. Calculated as revenue
less operating expenditure (including depreciation and amortisation and
operating exceptional items).
Other revenue Other revenue includes revenues from messaging, value added services (VAS),
enterprise, site sharing and handset sale revenue.
Reported currency Our reported currency is US dollars. Accordingly, actual periodic exchange
rates are used to translate the local currency financial statements of OpCos
into US dollars. Under reported currency the assets and liabilities are
translated into US dollars at the exchange rates prevailing at the reporting
date whereas the statements of profit and loss are translated into US dollars
at monthly average exchange rates.
Smartphone A smartphone is defined as a mobile phone with an interactive touch screen
that allows the user to access the internet and additional data applications,
providing additional functionality to that of a basic feature phone which is
used only for making voice calls and sending and receiving text messages.
Smartphone penetration Calculated by dividing the number of smartphone devices in use by the total
number of customers.
Total MBs on network Includes total MBs consumed (uploaded and downloaded) on the network during
the relevant period.
EBIT Defined as operating profit/(loss) for the period adjusted for exceptional
items.
EBITDA An alternative performance measure (non-GAAP). Defined as operating profit
before depreciation, amortisation and exceptional items.
EBITDA margin An alternative performance measure (non-GAAP). Calculated by dividing EBITDA
for the relevant period by revenue for the relevant period.
Lease-adjusted EBITDA (EBITDAaL) An alternative performance measure (non-GAAP). Defined as operating profit
before depreciation, amortisation and exceptional items, interest on lease
liabilities and repayment of lease liabilities due during the relevant period
Unstructured Supplementary Service Data Unstructured Supplementary Service Data (USSD), also known as "quick codes" or
"feature codes", is a communications protocol for GSM mobile operators,
similar to SMS messaging. It has a variety of uses such as WAP browsing,
prepaid callback services, mobile-money services, location-based content
services, menu-based information services, and for configuring phones on the
network.
Voice minutes of usage per customer per month Calculated by dividing the total number of voice minutes of usage on the
Group's network during the relevant period by the average number of customers
and dividing the result by the number of months in the relevant period.
Weighted average number of shares The weighted average number of shares is calculated by multiplying the number
of outstanding shares by the portion of the reporting period those shares
covered, doing this for each portion and then summing the total.
Abbreviations
2G Second-generation mobile technology
3G Third-generation mobile technology
4G Fourth-generation mobile technology
5G Fifth-generation mobile technology
ARPU Average revenue per user
bn Billion
bps Basis points
CAGR Compound annual growth rate
Capex Capital expenditure
CBN Central Bank of Nigeria
CSR Corporate social responsibility
DTA Deferred Tax Asset
EBIT Earnings before interest and tax
EBITDA Earnings before interest, tax, depreciation and amortisation
EBITDAaL Earnings before interest, tax, depreciation and amortisation after lease
EPS Earnings per share
FPPP Financial position and prospects procedures
GAAP Generally accepted accounting principles
GB Gigabyte
HoldCo Holding company
IAS International accounting standards
ICT Information and communication technologies
ICT (Hub) Information communication technology (Hub) IFRS
IFRS International financial reporting standards
IMF International monetary fund
IPO Initial public offering
KPIs Key performance indicators
KYC Know your customer
LTE Long-term evolution (4G technology)
LTM Last 12 months
m Million
MB Megabyte
MI Minority interest (non-controlling interest)
NGO Non-governmental organisation
OpCo Operating company
P2P Person to person
PAYG Pay-as-you-go
QoS Quality of service
RAN Radio access network
SIM Subscriber identification module
Single RAN Single radio access network
SMS Short messaging service
TB Terabyte
Telecoms Telecommunications
UoM Unit of measure
USSD Unstructured supplementary service data
Unless otherwise stated, all growth rates represent YoY growth for the nine-month period ending 31 December 2024.
1 An explanation of constant currency growth is described on page 24
2 Alternative performance measures (APM) are described on page 20
3 For future sensitivity on currency devaluation, refer to the Risk section on
page 18
4 Repayment of lease liabilities in the above table is inclusive of net lease
payables movement of $3m in the current period and ($20m) in the prior period.
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