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Airtel Africa PLC on Thursday said signs of currency stabilisation were encouraging as it reported an acceleration in constant currency sales growth in the third quarter. The telecommunications and mobile money services provider in 14 countries in Africa said pretax profit ballooned to $316 million in the third quarter ending December from $43 million a year prior. Earnings before interest, taxes, depreciation and amortisation fell 2.0% to $594 million from $606 million a year ago, but increased by 19% at constant currency. Revenue rose 2.5% to $1.27 billion from $1.24 billion a year prior, or by just over 21% at constant currency. Revenue had increased at just under 21% in the second quarter and by 19% in the first. In response, shares in Airtel Africa rose 9.4% to 145.50 pence each in London on Thursday. Chief Executive Sunil Taldar said demand ‘remains significant’ across its markets and business segments resulting in a further acceleration of constant currency revenue growth. He added that recent signs of currency stabilisation in some markets and the recent decision from the Nigerian Communications Commission regarding tariff adjustments in Nigeria are ‘encouraging and signal a more stable and supportive operating environment’. ‘While challenges remain, these developments provide a firm foundation for growth and improved market conditions,’ he stated. Airtel Africa’s total customer base grew by 7.9% in the quarter to 163.1 million. Data customers rose 14% to to 71.4 million while data usage per customer increased by 32%. Money mobile subscribers rose 18% to 44.3 million with transaction value up 33% at constant currency. Data average revenue per user growth reached 15.0% and mobile money ARPU growth was 12% in constant currency supporting overall ARPU which rose 12.0% on-year in constant currency. Taldar said the firm was seeing strong demand for services despite the challenging environment. Copyright 2024 Alliance News Ltd. All Rights reserved.
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