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Nigeria Contributes 18.3% to Double-digit Revenue Growth in Airtel Africa Q1 Results

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Airtel Nigeria total revenues for mobile services and mobile money combined grew by 18.3 per cent in Airtel Africa PLC released financial statement for its Q1 period ended June 30, 2022.

 

Key Highlights

 Revenue grew by 13.0% in reported currency to $1,257m. In constant currency terms revenue grew by 15.3%.

  • Total revenues, for mobile services and mobile money services combined, grew in Nigeria by 18.3%, in East Africa by 14.1% and in Francophone Africa by 11.7%.
  • Revenue growth in constant currency was posted across all four reporting segments. Mobile Services revenue in Nigeria grew by 18.3%, in East Africa by 11.1% and in Francophone Africa by 10.6% (and across the Group by 14.2%, with voice revenue up by 11.3% and data revenue up by 19.8%). Mobile Money revenue grew by 26.5%, driven by growth of 26.9% in East Africa and 25.4% in Francophone Africa.
  • EBITDA grew by 14.9% to $614m in reported currency.
  • EBITDA margin was 48.8%, an increase of 78 basis points in reported currency and 52 basis points in constant currency.
  • Operating profit grew by 20.6% to $425m in reported currency.
  • Profit after tax grew by 25.3% to $178m.
  • Basic EPS increased to 4.4 cents (up by 31.0%). EPS before exceptional items was 3.8 cents, up from 3.2 cents in the prior period.
  • Operating free cash flow grew by 10.3% to $473m, while net cash generated from operating activities reduced by 13.2% to $388m, mainly due to increased cash tax payments from both higher taxes on declared dividends and increased taxable profits.
  • Leverage ratio has improved to 1.3x from 1.8x in the prior period. Post period end, in July 2022, the Group prepaid $450m of outstanding external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024.
  • Our total customer base increased to 131.6 million, up 8.9%, with increased penetration across mobile data (customer base up 9.7%) and mobile money services (customer base up 19.7%).

Segun Ogunsanya, chief executive officer, on the trading update: ‘I am pleased to report that the Group has continued to post double-digit revenue growth, margin improvement and strong earnings growth.

“I am also particularly pleased with our ongoing strengthening of the balance sheet which continued after the period ended, with early repayment of $450m of debt at Group level.

“As we flagged in our full year announcement, this quarter we have faced headwinds from outbound voice call barring for customers who had not yet registered their National Identification Numbers in Nigeria and the loss of site sharing revenue in those OpCos where we recently sold towers.

“Inflation is also having an impact on our cost base, particularly on energy costs, but our continued efficiency drives have ensured that we have still been able to increase our margins, albeit at a slightly slower rate.

“After receiving the Payment Service Bank licence in Nigeria just a few months ago, it is a testament to our prior preparation that we have already managed to launch our mobile money operations in a few select locations without any operational issues.

“We are excited by the commercial developments and opportunities here. We also continued to invest for growth and have made a couple of major additional spectrum acquisitions recently in the DRC and Kenya in anticipation of continued strong data demand growth in these markets.

“We continue to target growth ahead of the market this year and, despite inflationary pressures, our continued focus on cost efficiencies should also support margin resilience. Longer term, the opportunities for sustainable profitable growth stemming from our underpenetrated markets for each of mobile voice, data and mobile money services remain hugely attractive, and we are confident of continuing to deliver on our growth strategy”.

Airtel Africa plc results for the quarter ended 30 June 2022 are unaudited and in the opinion of management, include all adjustments necessary for the fair presentation of the results of the same period.

The financial information has been prepared based on International Accounting Standard 34 (IAS 34) issued by the International Accounting Standards Board (IASB) approved for use in the UK by the UK Accounting Standards Endorsement Board (UKEB) and apply the same accounting policies, presentation and methods of calculation as those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 March 2022 except to the extent required/ prescribed by IAS 34.

This report should be read in conjunction with the audited consolidated financial statements and related notes for the year ended 31 March 2022. The comparative information has been drawn based on Airtel Africa plc’s audited consolidated financial statements for the year ended 31 March 2022.

Comparative quarterly information is drawn from the unaudited IAS 34 financials of the respective quarters. All comparatives and references to the ‘prior period’ or ‘previous period’ in this report are for the reported metrics for the quarter ended 30 June 2021.


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Airtel Hosts Interactive Knowledge Session for Secondary School Girls

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As part of its commitment to empowering and mentoring women to become global leaders while breaking stereotypes and closing gender gaps, the Airtel Women Network, a platform comprising female employees of Airtel Nigeria, welcomed girls from Airtel’s adopted school, Alaba Oro Comprehensive Senior High School, Ajegunle, to commemorate International Day of Girls in ICT on Monday.

Led by the telco’s IT Director, Kemi Ariyo, the session emphasized the need for the rise of influential female role models in driving progress within Science, Technology, Engineering, and Mathematics (STEM) careers. It also served as an avenue to inspire young girls about the vast opportunities within the Information and Communication Technology (ICT) field.

During the session, Ogo Ofomata, Director of Enterprise and Airtel Business and President of the Airtel Women Network, shared insights on the significance of the 2024 commemoration with the students.

“Leadership entails leading yourself to do the things you have to do. With regard to the theme of this year’s International Girls in ICT Day, which is Leadership, our goal is to empower young girls and women to become programmers, coders, designers and to pursue careers in the ICT sector, ultimately becoming leaders in the IT sector,” she said.

The highlight of the event was a thought-provoking session led by Kemi Ariyo, IT Director at Airtel Nigeria, emphasizing the importance of technological knowledge in addressing various global challenges.

In her words, “The world revolves around technology and everything we do today has to do with technology. You can get into that space by adopting hard work, smart work, and an active involvement in internship programs. In addition, just as technology can be used in music and other sectors, learning technology can help you achieve your goals of problem- solving in this digital age.”

Also speaking at the event, Phanindra Nichanametla, Chief Financial Officer, Airtel Nigeria, restated Airtel’s tagline ‘A Reason to Imagine’, reassuring the students of Airtel’s commitment to encouraging positive imagination. “A very important note to take home from this event is that Airtel is here to change your imagination and give you opportunities to imagine more,” he said.

Airtel remains committed to promoting initiatives that promote gender equality and diversity in the workplace. By investing in the education and empowerment of young girls in ICT, Airtel Nigeria continues to pave the way for a more inclusive and prosperous future in the world of technology.


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Mastercard Women SME Leaders Awards to celebrate success of women business leaders in EEMEA region

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Mastercard announces the return of Women SME Leaders Awards for its third edition, shining a spotlight on the remarkable achievements of women-owned and led businesses across Eastern Europe, Middle East, and Africa (EEMEA).

Black and white portraits of different people

Nominations are now open for the awards, inviting entries from women-owned and operated SMEs with a turnover of less than US$13.6 million (AED50 million) and a workforce of six to 50 employees. All women executives or business owners who have their headquarters or offices in EEMEA or offer their services to these markets can submit their nominations by 20 May 2024*.

“Women-owned and led businesses are vital contributors to the global economy, fostering economic growth and stability. By empowering women entrepreneurs and business leaders, we unlock the boundless potential they have and drive inclusive prosperity. The Mastercard Women SME Leaders Awards aim to recognize and celebrate their remarkable contributions,” said Amnah Ajmal, Executive Vice President, Market Development, EEMEA for Mastercard.

Winners will be announced on 6 June 2024, during an in-person event in Dubai, emphasizing Mastercard’s commitment to fostering connections and collaboration among women business leaders in the region.

The awards will feature 15 categories*, ranging from creative leadership to social impact and a lifetime achievement award. Shortlisted candidates will be evaluated by an esteemed judging committee of industry leaders dedicated to recognizing excellence and innovation in women-owned and led businesses.

Launched in 2022 to uplift female entrepreneurs and business leaders, these awards serve as a platform to honor and elevate women who are forging the path for future generations of business leaders in the region. Building upon the success of previous editions, this year’s event promises to extend its reach and recognition to even more exceptional women leaders.

Aligned with Mastercard’s global initiative to connect 25 million women entrepreneurs to the digital economy by 2025, these awards underscore the company’s dedication to building a more sustainable and inclusive world even though this global goal was achieved by Mastercard last year, two years before the target date.

With last year’s awards attracting over 4,500 nominations from across EEMEA, this year promises to be even more impactful, amplifying the voices and accomplishments of women leaders in business.


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Infobip, Nokia Partner to Enable Developers to Build Wider Array of Telco Network Powered Applications Faster

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Infobip, the global cloud communications platform, and Nokia today announced a partnering agreement that will enable the global developer community to leverage both companies’ Application Programmable Interface (API) platforms in order to build a wider array of telco network powered applications faster for consumer, enterprise, and industrial customers.

Matija Ražem, VP of Business Development, at Infobip

Infobip’s market-leading cloud Communications Platform as a Service (CPaaS) provides developers with APIs for integrating real-time omnichannel communications features such as SMS, voice, video, chat apps, and network APIs into their applications. Nokia’s Network as Code platform with developer portal offers developers APIs for tapping into 5G network capabilities like quality of service (QoS) on demand, device location precision and network slicing, as well as 4G capabilities.

Developers will be able to utilize all of those capabilities more easily, giving them complete coverage of Network and CPaaS APIs in the development of new use cases and the capacity to enhance application performance.

Nokia’s Network as Code platform with developer portal brings together networks from around the world, along with systems integrators and software developers, into a unified ecosystem; using technical standards produced through industry initiatives such as the GSMA Open Gateway initiative and the Linux Foundation CAMARA. Nokia and Infobip contribute to both initiatives.

Infobip’s customer engagement use cases include CAMARA-compliant Number Verify and SIM Swap APIs, which are already live. The firm is also working to bring further use cases to market including Device Location and Quality on Demand APIs, having now signed 12 API collaboration agreements. The CPaaS platform was recently named a finalist in the inaugural Global Mobile Awards GSMA Open Gateway Challenge for its anti-fraud intelligence collaboration.

The joint work between Infobip and Nokia will offer a simplified developer experience without the burden of navigating the complex underlying network technologies, allowing developers to integrate capabilities into their applications faster, relative to working separately with the two companies’ platforms.

Nokia has signed collaboration agreements with 11 network operators and ecosystem partners to use the Network as Code platform with developer portal since its launch in September 2023.

Matija Ražem, VP of Business Development, at Infobip said: “This agreement with Nokia further demonstrates how Infobip is helping telcos deliver new services and gain new revenue. We will continue to build and offer additional CAMARA-compliant APIs worldwide, working closely with our telco partners to expose customer experience friendly APIs to developers It is testament to our global market-leading CPaaS position, strong developer relations and history of strategic telco collaborations. These are essential to increase the potential for a successful collaboration and faster time to revenue.”

Shkumbin Hamiti, Head of Network Monetization Platform, Cloud and Network Services at Nokia, said: “This partnering agreement reflects our ongoing commitment to work closely with the developer community. It is about expanding choice and scale and giving developers a one-stop shop for extracting value from Infobip’s and Nokia’s platforms. We look forward to working with Infobip and maximizing our respective technologies.”


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