Airtel Africa Investors - AAF

Airtel Africa Investors - AAF

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Stock Name Stock Symbol Market Stock Type
Airtel Africa Plc AAF London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-0.30 -0.22% 136.60 16:35:14
Open Price Low Price High Price Close Price Previous Close
139.40 135.60 139.40 136.60 136.90
more quote information »
Industry Sector
MOBILE TELECOMMUNICATIONS

Top Investor Posts

Top Posts
Posted at 15/6/2022 12:19 by joseph moran
Cannot get a live quote for AAF at the moment, 'We have been unable to obtain a live quote at this time, on II investor'
Posted at 17/1/2022 17:19 by tole
https://www.fool.co.uk/2022/01/17/a-penny-stock-and-1-other-cheap-uk-share-id-buy-today/A non-penny stock on my radarI believe soaring data demand in sub-Saharan Africa could make Airtel Africa (LSE: AAF) a terrific long-term buy. Personal income levels are rising sharply on the continent while the telecoms market remains underpenetrated. This provides an exciting blend for this 'nearly' penny stock to exploit.Analysts at GSMA Intelligence put smartphone penetration in Africa at just 50%. What's more, the vast majority of handsets still run at 2G and 3G speeds. The likes of Airtel Africa then should benefit from the steady uptake of 4G demand and, further down the line, 5G.As a long-term investor I'm also very excited by the company's mobile money operations. When combined, Airtel Africa's voice and data services generate more than 80% of group revenues. But the rate at which its financial services revenues are rising suggests massive potential. Sales here rocketed 42.7% at constant currencies in the six months to September. By comparison, data and voice revenues rose 33.7% and 17.3% respectively.It's important to remember a bumpy post-coronavirus recovery could hit demand for Airtel Africa's services, however. The World Bank predicts that GDP growth of 3.6% this year and 3.8% in 2023 in sub-Saharan Africa. Though it warns that these forecasts could be blown off course if low vaccination rates in the region lead to a resurgence in Covid-19 infections.That said, from a long-term perspective I believe the potential rewards for Airtel Africa investors far offset the risks. At 139p this low-cost UK share trades on a forward P/E ratio of 13.5 times. A handy 2.7% dividend yield provides an added sweetener for me.
Posted at 15/1/2022 12:24 by wmb194
It was also tipped in this week's Investors' Chronicle.
Posted at 18/12/2021 09:25 by tole
https://www.fool.co.uk/2021/12/17/heres-1-ftse-250-stock-making-huge-strides-in-an-emerging-market/Here's 1 FTSE 250 stock making huge strides in an emerging market!Jabran Khan | Friday, 17th December, 2021 | More on: AAFFTSE 250 incumbent Airtel Africa (LSE:AAF) is making significant progress in Africa, an emerging economic region. Based on recent news and current share price levels, should I add the shares to my holdings?African economyAirtel Africa is a provider of telecommunications and mobile money services as well as banking in Africa. It currently provides services and has a presence in 14 of the continent's countries. Infrastructure spending in emerging markets is booming and expected to continue for the foreseeable future.As I write, shares in Airtel are trading for 127p, whereas a year ago they were trading for 77p. This is a 64% return over a 12-month period. The FTSE 250 index has only returned 12% in the same period. Airtel shares are currently trading close to all-time highs.Recent developments and performanceAirtel Africa last month reported its subsidiary SMARTCASH Payment Service Bank Limited has received approval in principle to operate a payment service bank business in Nigeria. This is a major deal for Airtel as this particular area of banking is growing fast in many African economies. Currently, there is a low level of banking products in the continent but wealth is rising, meaning there is demand for such products. Airtel should benefit from this.Airtel also announced another major partnership in October. This was a partnership with payment firm Flutterwave. The partnership would see Airtel access further African countries and markets it has not broken into previously. This should help boost growth ahead.Airtel's most recent trading update, a half-year report for the period ending September 2021, was excellent. Revenue increased by over 25% compared to the same period last year. This was underpinned by growth in all its regions. Customer levels were up and it saw cash flow increase by over 40% to supplement its balance sheet. An interim dividend of 2 cents per share was declared, up from 1.5 cents in the same period last year.FTSE 250 stocks have risks tooAirtel Africa's operations are all centred around emerging markets, which is risky. When economic fluctuations and downturns occur, emerging economies can be the most volatile. Despite recent progress, the pandemic-related macroeconomic pressures could halt progress and growth if they were to continue. I view this as a short- to medium-term risk, however. Airtel also continues its growth trajectory through partnerships and acquisitions. Sometimes, corporate acquisition and partnerships don't always yield growth and positive returns. This can also be more prevalent in emerging markets. Debt levels are also a bit higher than I would usually like. Overall I like Airtel Africa as a company and would add the shares to my holdings at current levels. Despite trading close to all-time highs, it still looks cheap with a price-to-earnings ratio of 12. In addition, it seems to have a clear path for growth and boosting its offering and profile. If growth and performance continues, investor returns should increase such as via dividends, which will likely make me a passive incom
Posted at 30/7/2021 14:51 by ryesloan
Fair enough. I think realising some of the value now in the money side makes sense, particularly when the market seems to be undervaluing the whole.And deleveraging through a balance of asset sales and a reduced but rebalanced dividend aligns to investors desire for an income return as well as wanting the company to reduce leverage over time.Each to their own Insuppose!
Posted at 30/7/2021 12:53 by ryesloan
Desperate? No I don't think so.Part of a planned deleverage of the balance sheet? Yes.Personally I see these Sov's as getting in early in the mobile money business to make their gains on the planned IPO so are medium term investors, which suits all parties just now I'd say.
Posted at 30/7/2021 09:24 by wmb194
Hmmm. It also makes you wonder whether it's desperate for cash. QIA is already an investor and one of AAF's problems is that its shareholder register is filled with sovereign wealth funds. Who then dump part of their stakes into an illiquid market and crash the share price...
Posted at 30/7/2021 09:12 by ryesloan
It makes sense to monetise part of the business as it grows. Reduces the current debt, lowers long term risk, strengthens the strategic partners and investor list as well as putting a clear value on the assets. It also puts in place a solid floor to IPO from.
Posted at 14/4/2021 08:18 by wmb194
@ Ferrugia: "Who is this mysterious seller who doesn't want to be named?" In December it was GIC Private Limited. hxxps://www.investegate.co.uk/airtel-africa-plc/rns/holding-s--in-company/202012171326250392J/ For late last year - I'm guessing pre its Dec disposal? - the FT markets page for AAF listed GIC as the largest institutional investor with a holding of 112.37m shares, 2.99% of the company. The disposal today could be most of the rest of its balance.
Posted at 08/10/2020 08:55 by robsy2
Good point. They have gone straight to mobiles out there. I have invested for myself and some family members . I pass on my notes that I always write up before I make an investment in the hope that you might find them of interest. I find writing it all down before I buy helps me clarify my thoughts. It also reminds me later why I bought it and what I was looking for, useful if it doesn't pan out as planned. I think we should do OK here. BULL POINTS • They operate in Africa which is a bull point (and a bear point). The bull side is that Africa is on the move economically and is the final frontier for investors. Opportunity beckons. • In Africa, mobile phone usage is increasing rapidly and there are plenty more customers to be won. • As the last developing continent, Africa has no fixed phone line infrastructure. Africans have moved quickly from next to nothing to the brick phone to the smart phone. As such, they have leapfrogged the typical development route . This is interesting because they have become especially heavy users of mobiles for all aspects of life, including banking, payments etc because the physical banking infrastructure is often unavailable . They are at the forefront of phone usage and AAF is developing more and more alliances to drive mobile phone usage including a link up with Standard Bank ( Africa’s largest bank) to offer financial services etc. • AAF has pretensions to be a Pan- African multinational. Of course they have steep competition with Vodafone and others but with the backing of Bharti, and their experience of growing a business in a developing countries like India , they should do well. • They are a low-cost, no-frills operator. This is a good positioning for cash-strapped customers in Africa. They operate a system of pre-payment offered through an army of vendors dotted around the African towns and cities. The client pre-paying for phone usage greatly reduces bad debts and unpaid bills and explains the strong cash flows that AAF enjoys. • The financial metrics look pretty good and are improving rapidly as the business gains traction. Like all Telco’s, they have a lot of debt but much less than many of their peer group. The counterbalance is that cash generation is phenomenal and debt is being paid down rapidly. Unlike other Telco’s, AAF is focussed on mobile phones only and is addressing markets in Africa where mobile phone penetration is still relatively low.. • This is a company that has made great strides forward in recent years and has hit profits in 2019 and 2020. Coved has slowed growth but they are delivering but with the stock trading at 25% below the flotation price of 80p, I see value here. The 9 analysts who cover this stock rate it as “OUTPERFORM221; and have target price of 79p, not wildly above the current price admittedly, but analysts expect the company to pay a dividend for the year to 31.03.21 of 6.7 cents . This puts it on a cash covered dividend yield of nearly 8%. • It is a fairly straightforward business with built in growth drivers as mobile usage increases around the continent. The smart phone is the key device at the centre of all of our lives now, from Alicante to Zanzibar. AAF has the network and a low cost offering that is attractive to cash-conscious African consumers. • It is a bit under the radar. This could change. The Midas article above will help that. If investors do warm to the story and they keep delivering , we should see a re-rating at some point. • It does something a bit different for us. It is having a reasonable COVID, has a lot of growth potential and offers our portfolio some diversity. • The website, reporting , investor communication etc all has a good feel to it. hxxps://airtel.africa/ is worth a look. BEAR POINTS • It is a relatively unproven company. It also has one large shareholder, so we are at the beck and call of the Bharti family. If they ever decided to bail out then we will all be in trouble! • It is an African centred business. UK quoted African companies, that are not mining companies, are practically unheard of. As such, it is fair to say that investors have not got excited about AAF yet. I am hoping and expecting that sentiment could change for the better as they prove themselves. • Africa is a little different, so we get all the normal risks and a lot of extra ones as well. On the plus side, AAF has institutional backing, it is quoted in London, has an air of efficiency about it , is compliant with first world governance standards and looks and feels fine, but make no mistake, while Africa is maturing it is still a little wild! • On the plus side, they operate across a lot of countries and everyone wants to keep the phones running. AAF is big enough to compete, the business model is pretty straightforward, consumers need what they do and they seem to know how to do what is needed. • On the downside, the mandatory risk section of their first set of annual accounts takes up 15 of the 212 pages! I am sure there will be bumps on the road, but hopefully nothing too catastrophic. The accounts are clear, balanced and absolutely first world so I am optimistic. • One such known risk is currency. They operate in 14 countries, so they earn in a variety of currencies, report in USD but the shares are quoted in GBP… This adds a series of complications in terms of FX rates and could affect reported earnings for better or worse. Conclusion I like the look of this company and think it can do a job for us. It could give us that combination of income and growth that we are looking for. It also offers our portfolio something a little different and gives us diversification business-wise and geographically. It would be nice to be part of the growth story in Africa. In conclusion, AAF looks like a good opportunity to invest in a growth stock that pays dividends, has a decent track record to date, an undemanding rating and real potential.
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