Airtel Africa's net profit for the fiscal year 2021 totals $415 million, showing a 1.8% increase in profits
In a year marked by challenges, Airtel Africa, a holding company for Bharti Airtel's operations in Africa, has announced impressive financial results. Raghunath Mandava, the CEO of Airtel Africa, expressed his gratitude to employees, business partners, governments, and regulators for their support.
The company's revenues for the year ended March 31, 2021, stood at $3.8 billion, representing a 14.2% increase. This growth was driven by several key areas, with strong top-line growth coming from expanding mobile money services, voice and data revenues, and continued network investments to scale 4G and 5G coverage.
The revenue growth was particularly significant in East Africa, where it rose 17.6%, with voice up 15.1% and mobile money usage growing steadily. Airtel Africa capitalised on digital and financial inclusion trends, making mobile money opportunities a strategic priority.
Other growth drivers included improving margin profiles and operating leverage, enabled by free cash flow generation supporting network investments and potential shareholder returns. Strategic partnerships, such as the one with SpaceX for Starlink satellite broadband services, aim to enhance connectivity in rural and underserved areas and drive enterprise and social infrastructure subscriptions.
Foreign exchange management through local borrowings also played a crucial role, reducing FX losses and improving profitability, freeing cash for further growth initiatives.
In constant currency, the growth was 19.4% in underlying revenue and 25.2% in underlying EBITDA. Airtel Africa posted net profits of $415 million, a 1.8% growth from the previous year. The company reported a 13.6% growth in underlying revenue and a 18.3% growth in underlying EBITDA.
Data revenue contributed 35% to Airtel Africa's total revenue, with Airtel Money adding $401 million to revenue, compared to $311 million last year. Data usage per customer increased to 2.6 GB from 1.8 GB, led by an increase in smartphone penetration and expansion of home broadband and enterprise customers.
4G data usage more than doubled in the year, contributing 62.2% of total data usage on the network in Q4'21. Despite the impact of Covid-19 and a ban on SIM card registration in Nigeria, Airtel Africa's profits have grown slightly.
In other developments, Olusegun Ogunsanya will take over as the new managing director and CEO of Airtel Africa, with Raghunath Mandava retiring from his post and as a director on 30 September. The growth in revenues came across all regions and major services, with particular improvement in Francophone Africa and in mobile money, data, and voice services.
The expansion of Airtel Africa's mobile money product portfolio was achieved through partnerships with leading financial institutions and the expansion of its merchant ecosystem. The number of mobile money agents, kiosks, and branches increased by 30.7%, 68.8%, and 95% respectively.
These impressive results demonstrate Airtel Africa's resilience and adaptability in the face of challenges, positioning the company for continued growth and success in the future.
- Airtel Africa, following strategic investments in technology and fintech, saw a steady growth in mobile money services, with revenue from Airtel Money increasing from $311 million to $401 million.
- The company's strong performance in the year, driven by key areas including expansion of mobile money services, voice and data revenues, and network investments, positioned it for potential growth in rural and underserved areas through partnerships with firms like SpaceX.
- With the growth in revenues across all regions and major services, particularly in Francophone Africa and mobile money, data, and voice services, Airtel Africa is poised for continued success and adaptability in the future, demonstrating its resilience in the face of challenges.
