Airtel Africa H1 revenue up 12.9%

Airtel Africa, a leading telecommunications company in the region, recently announced a significant revenue growth of 12.9 percent in its half-year report ended September 30th, 2022. The Group CEO, Segun Ogunsanya, highlighted the company's commitment to delivering strong results and transforming the lives of people across sub-Saharan Africa through digital and financial inclusion. Ogunsanya joined CNBC Africa for an insightful discussion on the company's financial performance and future plans. The interview shed light on key highlights of Airtel Africa's report, including a 9.2 percent increase in the customer base and a remarkable 24 percent growth in mobile money services. The CEO attributed this success to solid growth in voice revenue, data revenue, and mobile money revenue across all regions. Ogunsanya emphasized the company's strategic focus on distribution, network expansion, and organizational efficiency, which contributed to the robust growth in various business areas supported by decent margins. Despite the positive performance, the CEO acknowledged challenges in some African countries due to foreign exchange volatility, resulting in translation adjustments and derivative losses. However, he clarified that these were not cash losses and reiterated the solid operational performance in those markets. Airtel Africa's capital expenditure of $310 million in the last six months primarily targeted capacity expansion, coverage enhancement, and infrastructure development for transmission and network support. The company also invested in spectrum acquisitions in key markets like the Democratic Republic of Congo, Kenya, Zambia, and Tanzania to fuel future growth. Furthermore, Airtel Africa secured a Payment Service Bank and super agent license in Nigeria, where it has a robust mobile business. The company focused on building a secure IT platform and a comprehensive distribution network to ensure customer trust and accessibility. Looking ahead, Airtel Africa is optimistic about participating in the upcoming 5G spectrum auction in December and remains committed to investing in network expansion across all operating countries. Ogunsanya highlighted the immense growth opportunities in Africa driven by a young population, increasing mobile penetration, and low usage levels compared to other regions. He emphasized the potential for significant growth in voice, data, and banking services, given the vast untapped market potential in the region. The CEO also addressed the evolving ecosystem of telcos venturing into financial services, stressing collaboration with banks to broaden financial inclusion rather than direct competition. With the impending launch of 5G technology and other innovations, Airtel Africa aims to enhance user experience and drive prosperity for people across Africa. As the telecom industry continues to evolve, Airtel Africa remains focused on driving innovation, expansion, and inclusivity to empower communities and foster economic growth in the region.