With an increase in Airtel Money transactions and a higher data consumption, Bharti Airtel’s African arm has reaped big over the past year. The operations on the continent posted a net profit of $83 million in the March quarter.
The financial results released yesterday detail that the company’s total revenue in Africa grew by 6% year-on-year from $736 million to $781 million in the March quarter, while its earnings before interest, taxes, depreciation and amortization improved 12% year-on-year from $307 million to $344 million in the March quarter.
In the East African region, where Airtel has operating units in Uganda, Rwanda, Kenya, Tanzania, Malawi and Zambia – there was an increase in the customer base, with the number rising to 42.8 million in the March 2019 quarter. This reflects a 10 per cent growth from 38.9 million in the same quarter in 2017.
Voice revenue in the region stands at $151 million, having grown by 7.3% when compared to the $140 million in registered in the same quarter last year. Data revenue is at $70 million, a 13.6% growth as compared to the $62 million in the corresponding quarter last year.
The total network towers were at 8,449 at the end of the quarter as compared to 8,126 in the corresponding quarter last year; while the mobile broadband base stations were 15,551 as compared to 10,419 in corresponding quarter last year.
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Airtel Africa ready for London IPO
It was revealed in February last year that Airtel was considering an IPO for the African arm. And in October, six potential investors were listed to invest $1.25 billion through a primary equity issuance in Airtel Africa. These included Warburg Pincus, Temasek, Singtel and SoftBank Group International. Qatar Investment Authority would come out in January to state its intentions to invest $200 million in the arm.
No detailed information is available yet, but the company is planning to make a formal announcement about the London listing this month and aims to start trading in June. An equity valuation of about $5 billion is likely to be considered.
