Airtel Africa's revenue increased by 19.5 percent in its fiscal third quarter ended 31 December. Underlying revenue rose by 17.2 percent to USD 1.03 billion, and adjusted EBITDA increased 21.7 percent to USD 485 million. Net profit went up by 13.1 percent to USD 116 million from USD 103 million in 2019. Airtel added 2.5 million customers in Q3, bringing the total number of customers to 118.9 million at end-December, an increase of 11 percent from a year earlier.
Data customers increased by 23.5 percent to 40.6 million, and mobile money customers rose by 29 percent to 21.5 million. Capex increased by 25.1 percent to USD 88 million, and cash flow deceased by 17.8 percent to USD 146 million.
For the nine-month period, revenue increased by 13.8 percent to USD 2.87 billion, driven by both the resilience of the business model through the Covid-19 pandemic and a continued improvement in the execution and performance as lockdown restrictions eased across countries of operation, Airtel said.
Growth was recorded across all regions: Nigeria up 21.6 percent, East Africa up 23.4 percent and Francophone Africa up 8.0 percent; and across all services, with voice revenue up 10.4 percent, data up 31.1 percent and mobile money up 34.2 percent. Underlying EBITDA was USD 1.297 billion, up 16 percent in reported currency while constant currency underlying EBITDA growth was 22.5 percent. The underlying EBITDA margin was 45.5 percent, up by 118 bps (up 144 bps in constant currency).
Operating profit increased by 21.8 percent to USD 800 million, while net profit fell 21.1 percent to USD 261 million. Free cash flow was USD 466 million over the nine months, up 20 percent compared to USD 388 million in 2019.
Airtel Money minority stake up for sale
Airtel Africa also said it's seeking to sell a minority stake in its mobile financial services platform Airtel Money. The move is part of a strategy to sell some assets to raise cash for investment. In addition, the operator is actively pursuing the sale of its remaining owned tower sites in several countries.
Talks are underway with various potential investors in relation to possible minority investments in Airtel Money. There can be no certainty that a transaction will be concluded or as to the final terms of any transaction, the company said. Airtel Money generated revenues of USD 291 million in the nine months, up 34.2 percent in constant currency terms from USD 228 million a year earlier.
