Costs Weigh Down Airtel Africa’s Q2 Results: Net Profit Down 8.3%

Costs Weigh Down Airtel Africa’s Q2 Results: Net Profit Down 8.3%

Airtel Africa operations registered a net profit of $88 million for the second quarter this fiscal, down 8.3% year-on-year due to higher net finance costs.

Profit after tax after exceptional items grew 54.3% from the preceding quarter’s $57 million.

In the review period, July-September the telco’s subscriber base across 14 African countries grew 4.4% on-quarter and stood at 116.4 million with an average revenue per user (Arpu) of $2.8, up from the preceding quarter’s $2.6.

Consolidated revenue stood at $965 million, having increased 14.3% from the corresponding quarter last year. Earnings before interest, tax, depreciation, and amortization (EBITDA) were up 17.4% at $437 million.

Costs Weigh Down Airtel Africa’s Q2 Results

Costs Weigh Down Airtel Africa’s Q2 Results

“Growth was recorded across all regions: Nigeria up 20.2%, East Africa up 21.9% and Francophone Africa up 4.4%, and services, with voice revenue up by 7.0%, data by 33.4% and mobile money by 30.4%,” the company said.

Raghunath Mandava, chief executive officer, Airtel Africa in a statement said, “We also continued to enter new partnerships with leading institutions such as WorldRemit, MoneyGram, Standard Chartered Bank, and Mukuru to increase use cases and improve customers’ access to digital payments and financial services.”