Nairobi, Kenya, May 15, 2024 – Airtel Africa plc has released its annual results for the year ending March 31, 2024, showcasing significant growth metrics and a resilient performance despite a volatile macroeconomic environment. This report underscores Airtel’s strategic advancements and the critical role of East Africa in its growth narrative.
Customer Base and Digital Inclusion
Airtel Africa’s total customer base expanded by 9.0 percent to reach 152.7 million, according to the Quarter 4 Financial Results released in a statement on May 15. The company has made substantial progress in bridging the digital divide, evidenced by a 17.8 percent increase in data customers to 64.4 million and a 20.8 percent rise in data usage per customer. This growth is pivotal in enhancing digital inclusion across its markets, particularly in East Africa, where mobile penetration is crucial for economic development.
Mobile Money Expansion
Airtel’s mobile money services witnessed a 20.7 percent growth in subscribers, reflecting the company’s investment in distribution to boost financial inclusion. The transaction value surged by 38.2 percent in constant currency, with an annual transaction value exceeding $112 billion. This robust performance highlights the increasing adoption of mobile money services, which are vital in East Africa for driving economic activities in underserved regions.
Network Investment and 4G Expansion
Continuing its commitment to enhancing customer experience, Airtel invested significantly in network infrastructure, resulting in 95 percent of its sites becoming 4G operational. This investment led to a 42.3 percent increase in 4G customers over the year. The expanded 4G coverage is especially significant in East Africa, where connectivity improvements are essential for economic and social development.
Financial Performance
Despite the challenges posed by currency devaluation, particularly in Nigeria, Airtel Africa’s revenue in constant currency grew by 20.9 percent, with a notable acceleration to 23.1 percent in Q4 2024. The company’s mobile services revenue increased by 19.4 percent in constant currency, driven by a 29.2 percent growth in data revenue and an 11.9 percent rise in voice revenue. Mobile money revenue surged by 32.8 percent in constant currency, showcasing strong performance in East Africa.
EBITDA and Profitability
Airtel Africa maintained resilient EBITDA margins at 48.8 percent despite inflationary pressures and currency headwinds. Constant currency EBITDA increased by 21.3 percent, although reported currency EBITDA declined by 5.7 percent to $2,428 million. The company reported a loss after tax of $89 million, primarily due to significant foreign exchange headwinds and currency devaluation impacts in Nigeria and Malawi.
Capital Allocation and Strategic Investments
Airtel Africa’s capital expenditure remained steady at $737 million, with additional investments in license renewals and spectrum acquisitions. The company also launched a share buyback program of up to $100 million and recommended a final dividend of 3.57 cents per share. These strategic moves underscore Airtel’s commitment to returning value to shareholders while continuing to invest in its growth trajectory.
Sustainability Initiatives
Airtel Africa’s sustainability strategy includes a landmark five-year partnership with UNICEF to provide digital learning resources to over one million children across 13 markets. Additionally, the company partnered with the Government of Rwanda to launch ConnectRwanda 2.0, aiming to provide affordable smartphones to over a million people, further bridging the digital divide in East Africa.
CEO’s Perspective
Olusegun Ogunsanya, CEO of Airtel Africa, emphasized the resilience and potential of the company’s markets. “The consistent deployment of our ‘Win with’ strategy supported the acceleration in constant currency revenue growth over the recent quarters, reducing the impact of currency headwinds. This strong revenue performance reflects the opportunity inherent across our markets and the resilience of our affordable offerings despite inflationary pressures,” he stated.
Conclusion
Airtel Africa’s 2024 financial results highlight robust growth and strategic advancements despite economic challenges. The company’s focus on digital inclusion, network investment, and financial sustainability continues to drive its success, particularly in East Africa, where mobile and financial services are essential for development. As Airtel Africa navigates the complexities of the macroeconomic environment, its commitment to empowering communities through technology remains unwavering.
About Airtel Africa
Airtel Africa is a leading telecommunications and mobile money services provider, operating in 14 countries across East, Central, and West Africa. The company offers an integrated suite of telecom solutions, aiming to deliver a seamless customer experience through innovative and accessible services.