Airtel Africa Share Discussion Threads

[disc0dave45] 19/9/2022 16:52

Just a trade

[alotto] 19/9/2022 11:48

massive debt with hiking interest rates in a very competitive trade where no moat makes sense. I would be weary

[disc0dave45] 19/9/2022 11:28

Back to 130 I guess before next leg up to 160-170

[2vdm] 25/8/2022 07:40

I agree One_Frankel. Not a very helpful addition to this thread Sankshiela, so filter button applied

[one_frankel] 24/8/2022 14:39

Nice!...And such a beacon of light you are SankShiela!

[one_frankel] 24/8/2022 12:41

To invest in Africa, a business has to be well-versed with those geopolitical issues 2vdm otherwise they'll fail at the first hurdle and those companies are no mugs and probably worth alot more than some of those impoverished nations in the African subcontinent!

[2vdm] 24/8/2022 07:58

Just a wild guess, but I suspect that all the above companies mentioned have both deep enough pockets and slush funds to weather the storm. They are also well versed in dealing with the geo-political problems in Africa. Only my view. I agree that debt is not an issue for AAF and that eventually it will continue to rise.

[johnrxx99] 24/8/2022 07:45

The downside of investing in Africa. Grab it while you can is the politicians motto.

[podgyted] 24/8/2022 00:29

hTTps://uk.finance.yahoo.com/news/congo-bans-orange-airtel-vodacom-093505878.html

[one_frankel] 23/8/2022 18:51

Nothing more than corruption of some unscrupulous governmental types in filling their pockets and thats unfortunately highly prevalent throughout the African subcontinent... "The Democratic Republic of Congo has ba_nned some telecommunications executives from leaving the country after they resisted paying a new tax on the industry, according to people familiar with the matter. Executives from the country’s four major carriers -- Orange SA, Airtel Africa Plc, Vodacom Group and Africell Holding SAL -- have been prevented from traveling and some have had their passports taken, the people said, asking not to be identified because they aren’t authorized to talk about the travel bans."

[paulo435] 23/8/2022 18:42

“Congo bans Airtel” - haven’t read into it yet

[one_frankel] 23/8/2022 17:17

AAFs debt is not as demanding or even detrimental to their underlying business as that of other indebted companies since its in a high turnover segment of the wider market which is invariably recession proof and more so in the Africa region so don't let this opportunity pass you by folks, its decent value at around current valuations!

[stevedeer] 23/8/2022 08:58

Just in to play the trading range yesterday at 141. I'm always too early!

[2vdm] 12/8/2022 08:18

Always difficult as AAF are expanding to capture markets for the future. However I agree it is the risk here. A fine balancing act. However this is no tiddler which can afford high level CFO, economists etc and I'm sure the BOD will be just as aware of the risks as we are.

[alotto] 12/8/2022 06:49

Akb44 exactly my thought. They need to reduce that debt fast as interest rates may bite soon.

[akb44] 11/8/2022 21:04

It is a good point alotto, wonder what trade off they have to make to allow their liabilities to be much higher than assets. Debt level is a risk with this investment, esp given rate hikes in the near future.

[saltaire111] 11/8/2022 18:02

Rough couple of weeks. Buying opportunity?

[alotto] 11/8/2022 15:43

I hope this goes well below 140p (in the short term). Meantime I'd like to work out how they manage their quick ratio <<1

[akb44] 11/8/2022 15:03

Lots of volatility on this, great to keep topping up on when it's between 140 and 150.

[wmb194] 02/8/2022 11:59

You're referring to the FY results to 31/03/22. It's just a snapshot in time. There were or will be some post-results cashflows and it looks like this is the case, from the "IR Pack Q1 23" on its website: "Leverage (net debt to EBITDA) improved to 1.3x at 30 June 2022, from 1.8x at 30 June 2021, largely driven by increased cash generation, EBITDA expansion and the receipt of $550m from mobile money minority investments. Our balance sheet has continued to be de-risked through a reduction of HoldCo debt to $1bn, from $1.9bn in the prior period; and the increased localisation of our debt into the OpCos, such that our HoldCo debt is significantly lower than gross OpCo debt of $3bn (including lease obligations). In July 2022, our HoldCo debt was reduced even further to $550m, following the early repayment of $450m of senior notes due in May 2024."

[alotto] 02/8/2022 11:36

How does Airtel manage debt, with 2 bln current asset and 3 bln current liabilities? By comparison Vodafone has a 1 to 1 ratio, with about 30bln cuurent asset and 30 bln current liabilities.

[2vdm] 01/8/2022 14:23

Good to see John Danilovich, a non-excutive director of AAF buying £97K's worth of shares at just over 159p today.