Dan Ridsdale, Managing Director of TMT at Edison Group comments: “Africa’s second-largest telecoms operator Airtel Africa has shown strong growth in its half-year results, expanding both its mobile data and mobile money operations in the continent. With its total customer base expanding to 134.7 million, an uptick of close to 10 per cent, Airtel Africa has increased revenues by 12.9% (16.9% at constant currency). The company’s profit after tax took a hit however, mainly due to the strong devaluation of a number of African currencies, resulting in high foreign exchange fees. Further, rising interest rates have added to costs, leaving Airtel Africa with a 1.5% reduction in profit after tax.
“The group’s expansion into widespread 4G technology in all of its 14 markets has led to increased customer penetration. At the same time, its mobile money product has shown significant revenue and customer growth, reflecting its continued drive for financial inclusion on the continent. Macro-economic difficulties will continue to place pressures on companies such as Airtel Africa, as the dollar remains strong against quickly devaluing currencies in Africa, raising import and transaction costs considerably. Despite this, Airtel shows margin resilience and a strong growth profile, which will see the telecoms provider in good stead over the next half year.”