Airtel Africa Doubles Network Spending As Half-Year Profit Climbs

More Africans are watching video and running their businesses on Airtel’s network, and the company is spending to keep up. Airtel Africa reported on 30 October that profit after tax for the six months to 30 September rose 20.5 per cent to $452 million, while capital spending more than doubled to $657 million from $318 million a year earlier.

The money went into towers and radios. Airtel added about 4,200 sites in the period, and 99.2 per cent of its network sites now carry 4G. In Francophone Africa, the share rose from 93.3 per cent to 97.4 per cent. The company also put 5G on about 4,100 sites across seven markets, launching it in Gabon and the Seychelles. It laid more than 2,000km of fibre, taking the total past 83,000km.

Customers are using the network more heavily. Airtel counts 193.9 million customers, up 11.6 per cent. The average smartphone user now consumes 13.3GB a month, up from 10.1GB a year ago. In Nigeria, its largest market, smartphone users average 16.7GB a month, up from 12.7GB. Data now brings in half of mobile services revenue.

The naira’s recovery helped the results. The average rate strengthened from N1,553 to N1,360 to the dollar, which improved the Nigerian business’s earnings in dollar terms by about 12 per cent. Group revenue rose 28.2 per cent to $3.82 billion, or 20.8 per cent in constant currency. Nigerian mobile revenue was $1.01 billion, up 44.6 per cent as reported and 26.6 per cent in constant currency.

The costs are visible too. Net finance costs rose to $477 million from $304 million. In Francophone Africa, operating free cash flow fell 21.6 per cent to $164 million as spending outpaced earnings. Airtel said fuel prices in Nigeria have doubled since the start of its financial year, and Chief Executive Sunil Taldar said margins “will continue to be influenced by the macroeconomic environment, including its impact on fuel costs.”

Airtel also reported 60.9 million Airtel Money customers, up 22.4 per cent, and more than 2.5 million active agents. Its mobile money arm listed on the London Stock Exchange on 14 October, with Airtel Africa keeping a 77.85 per cent stake. The company has also partnered with Starlink to reach rural communities, which it expects to supply a significant share of future customer additions.

Shareholders get an interim dividend of 3.1 cents a share, up 9.2 per cent, payable on 11 December.