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- Shares in Airtel Africa PLC slumped on Thursday as it noted headwinds in its first quarter, with inflation pressures capping margin progress.
Shares in the Africa-focused telecommunications firm were down 10% at 153.70 pence in London early Thursday, while the wider FTSE 100 index was down just 0.2%.
Revenue in the first quarter ended June 30 grew 13% to $1.26 billion, up 15% in constant currency.
All four reporting segments saw revenue growth at constant currency, with Mobile Services revenue in Nigeria up by 18%, East Africa up 11% and Francophone Africa up 11%. Mobile Money revenue grew by 27%, driven by growth of 27% in East Africa and 25% in Francophone Africa.
Earnings before interest, tax, depreciation and amortisation advanced 15% to $614 million, with the margin strengthening a touch to 48.8% from 48.0%.
‘As we flagged in our full-year announcement, this quarter we have faced headwinds from outbound voice call barring for customers who had not yet registered their National Identification Numbers in Nigeria and the loss of site sharing revenue in those OpCos where we recently sold towers,’ said Chief Executive Segun Ogunsanya.
‘Inflation is also having an impact on our cost base, particularly on energy costs,’ Ogunsanya added, ‘but our continued efficiency drives have ensured that we have still been able to increase our margins, albeit at a slightly slower rate.’
Ogunsanya said: ‘We continue to target growth ahead of the market this year and, despite inflationary pressures, our continued focus on cost efficiencies should also support margin resilience.’
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