In Short:
Bharti Airtel’s Africa business reported a $31 million profit in the first quarter, compared to a $151 million loss last year. Revenue fell 16% due to currency devaluation in Nigeria. However, revenue rose 3.4% sequentially. Cost optimization is ongoing, and the company repaid outstanding debt. Airtel Africa’s mobile money business saw growth, with steady ARPU and customer base. Operating margins declined due to various factors.
Airtel Africa Reports $31 Million Net Profit in Q1 FY25
Bharti Airtel’s Africa business reported a net profit of $31 million in the fiscal first quarter, a significant turnaround from the $151 million net loss in the same period last year. The improvement was driven by a sharp fall in net finance costs. However, revenues declined due to currency devaluation in Nigeria.
Revenue and Financial Highlights
Airtel Africa’s revenue fell 16% year-on-year to $1.15 billion, mainly due to currency devaluation in Nigeria. Despite this, the company saw a 3.4% sequential increase in revenue, supported by higher average revenue per user (ARPU) and growth in the mobile money business.
Net finance costs for the quarter stood at $139 million, down 34% year-on-year, primarily due to lower derivative and foreign exchange losses.
Operational Updates
Airtel Africa CEO, Sunil Taldar, mentioned a comprehensive cost optimization program across the Group, resulting in savings in network and distribution costs. The company expects sustainable savings to continue throughout the year.
The company also announced that it fully repaid its outstanding debt and is focused on reducing foreign currency exposure to mitigate the impact of currency devaluation.
Key Performance Metrics
The company reported steady operational performance with an ARPU increase of 2.8% sequentially to $2.2. The mobile money business showed positive growth, with an increase in the customer base and revenue.
Data revenue increased by 6.1% sequentially, driven by higher consumption. The overall customer base across Airtel Africa’s markets also grew by 1.8% to 155.4 million.
Outlook and Investments
Airtel Africa’s capex for the quarter was $147 million, a 4.9% increase from the previous year. The company maintained its full-year capex guidance between $725 million and $750 million.
Despite challenges such as rising fuel prices and lower contribution from Nigeria post-devaluation, the company remains focused on future growth and investment.
Net debt in the fiscal first quarter increased by nearly 6.3% to $3.72 billion.
