# Airtel Africa a strong set of results with performance sequentially improving during the year

- Link: https://www.directorstalkinterviews.com/airtel-africa-a-strong-set-of-results-with-performance-sequentially-improving-during-the-year/412820392
- Published: 2020-05-13T07:40:56+01:00
- Author: Giles Arbor

**[Airtel Africa plc](https://www.directorstalkinterviews.com/ftse-company/airtel-africa/aaf.l)**(
LON:AAF) have today provided final results for the year ended 31 March 2020.

**Key highlights**

·     Customer base up by 11.9% to 110.6 million

·     Revenue increased by 11.2% to $3,422m, with Q4 revenue growth up 15.1%

·    Revenue in constant currency grew by 13.8% in the full year and 17.9% in Q4.
Growth recorded across all business segments, with voice revenue up by 5.2%, data
by 39% and mobile money by 37.2%

·     Underlying EBITDA up 13.8% to $1,515m, with underlying EBITDA growth in constant
currency at 16.3%

·     Reported underlying EBITDA margin improved to 44.3% by 100 bps (up 94 bps 
in constant currency)

·     Operating profit grew by 22.8% to $901m and increased by 25.4% in constant
currency

·     Free cash flow was $453m, more than double compared to the same period last
year

·     Earnings per share (EPS) before exceptional items was $7.3 cents and basic
EPS was $10.3 cents, a decrease of $9.2 cents

·     Net debt to underlying EBITDA was 2.1x, compared to 3.0x in March 2019

·     The Board recommended a final dividend of $3 cents per share, to a total dividend
of $6 cents per share

> **Raghunath Mandava, Airtel Africa chief executive officer, on the trading update:**
> “These are a strong set of results which delivered against our aspirations set
> out at the time of the IPO, with performance sequentially improving during the
> year. Revenue increased by 11.2%, 13.8% in constant currency, and underlying EBITDA
> by 13.8%, 16.3% in constant currency, to a reported $1,515m, underpinned by significant
> improvement in our Free cash flow generation and reduced leverage. These results
> also demonstrate the strength and resilience of our business and the effectiveness
> of our strategy – with all three business services, voice, data and mobile money,
> contributing to revenue growth. We have also continued to invest in future growth
> opportunities as we expanded our distribution, modernised and expanded our network
> with 65% of sites now on 4G, acquired new spectrum in Nigeria, Tanzania, Malawi
> and Chad, and entered into strategic partnerships in our mobile money business.
> More recently, the markets where we operate have begun to be impacted by the COVID-
> 19 and the related actions that governments have implemented to reduce the risk
> of contagion. Our priority has been to keep our colleagues, suppliers and customers
> safe whilst supporting the communities in which we operate. Telecoms businesses
> provide strategically essential services to ensure the functioning of economies
> and communities and are, therefore, more resilient compared to some other sectors.
> In Africa, the spread of the COVID-19 has lagged the rest of the world and, therefore,
> it is difficult to precisely forecast what the impact of this will be on customers
> and business. However, our performance during the month of April has been resilient
> as the business continued to deliver constant currency revenue growth, although
> at a lower rate.
> We enter this period of increased volatility in a strong financial position and
> our view on the medium-term opportunities across our footprint has not changed,
> as these markets will continue to benefit from strong population growth and the
> need for increased connectivity and financial inclusion.
> Finally, I would like to thank wholeheartedly our employees and partners, without
> whom none of this would be possible.”

Share on: