Airtel Africa Plc 2023FY Performance - Regulatory Headwinds amidst FX Risk
Regulatory Headwinds amidst FX Risk
Higher intersegment revenue across all regions
In local currency, AIRTELAFRI recorded growth in intersegment revenues (total revenue of each subsidiary prior to consolidation) across all regions, with Nigeria, East and Francophone Africa all ticking higher by 20.30%, 17.40% and 12.70% respectively in 2023FY on a YoY basis. However, upon consolidation and in USD, only the Nigerian market recorded increased revenue by 13.33% to USD2.13bn, while revenue in East Africa (Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia) declined by 12.57% to USD1.50Bn, and Francophone Africa (Chad, Democratic Republic of the Congo, Gabon, Madagascar, Niger, Republic of the Congo, and Seychelles) fell by 3.90% to USD1.08bn.
Operating Efficiency: Strong Margins with Effective Cost Optimization
In USD terms, AIRTELAFRI’s EBITDA grew by 13.35% YoY to USD2.59bn in 2023FY (vs. +26.40% YoY to USD2.28bn in 2022FY). While the earnings growth was at a slower pace during the period, EBITDA margins improved marginally at an impressive 49.15% in 2023FY (vs. 48.35% in 2022FY).
Airtel Africa PLC Formerly known as Airtel Africa Ltd. Airtel Africa PLC is a United Kingdom-based provider of telecommunications and mobile money services. The Company offers an integrated suite of telecommunications solutions, including mobile voice and data services as well as mobile money services both nationally and internationally. It offers traditional mobile voice services, with a primary focus on data and non-voice services through its third generation (3G) and fourth generation (4G) networks. It also offers mobile money services under its Airtel Money brand to customers in all of the Company's 14 countries of operation in Africa, primarily in East Africa and Central and West Africa. The mobile voice business line comprises pre- and post-paid wireless voice services, international roaming and fixed-line telephone services. The mobile data business line comprises data communications services, including second generation (2G), 3G and, increasingly, 4G data services, and other value added services (VAS).
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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