Airtel Africa nearly doubles profit after tax in 9-months

Airtel Africa, a leading telecommunications company, has reported a remarkable 97% increase in profit after tax for the 9-month period ending on December 31st. CEO Segun Ogunsanya attributed this strong performance to a robust third quarter and highlighted significant improvements in customer growth trends. In an exclusive interview with CNBC Africa, Ogunsanya discussed the key drivers behind the company's top and bottom-line growth. He expressed satisfaction with the overall performance, noting that all key sectors and geographies had shown improvement. The company achieved a 20% growth in the top line, reaching $1.2 billion in the last quarter, signaling the effectiveness of their strategic initiatives. Moving on to business segments, Ogunsanya emphasized growth in voice, data, and mobile money despite challenges in certain markets like South Africa and Tanzania. Mobile money business saw a substantial increase of almost 30% and 37% in Tanzania, demonstrating strong performance in this key area. Data showed impressive growth of 87%, with voice data also increasing by 16% in the 9-month period. Despite facing challenges in Nigeria due to government restrictions on new customer registration, Airtel Africa managed to achieve a 5.8% growth in customer numbers, reaching nearly 1.29 million. The company's customer base in Nigeria saw healthy growth, adding almost 1.9 million new customers in the last quarter. Ogunsanya shared insights into the company's financial activities, highlighting the redemption of Australian securities and senior notes. He mentioned generating cash from core operations and receiving $550 million from the sale of their interest in the mobile money business. The company is focusing on debt reduction and strengthening its balance sheet by repaying $100 million in the near future, showcasing a strategic commitment to financial health. Airtel Africa's inclusion in the FTSE 100 on the London Stock Exchange was described as a testament to their growth and success since listing in 2019. Ogunsanya reiterated the company's focus on network and distribution expansion, as well as cost optimization, as key drivers of future growth. The CEO also discussed recent developments in Nigeria, where Airtel Africa obtained licenses for payments banks and super agents, emphasizing the company's commitment to financial inclusion. Regarding the decision to withdraw from the bid for 5G spectrum in Nigeria, Ogunsanya expressed confidence in the company's existing spectrum holdings to meet customer demands. He pointed out ongoing efforts to work with stakeholders and develop use cases for 5G technology. Looking ahead, Airtel Africa's growth strategy centers around expanding network coverage, enhancing mobile money penetration, and increasing mobile telephony penetration across their 14 operating countries. With a focus on underserved markets and untapped growth potential in voice, data, and financial services, the company is poised for continued success in the dynamic African telecom sector.