Airtel Africa Share Discussion Threads

[saltaire111] 28/10/2021 08:42

Surely it’s just a question as to when this gets taken over, rather than if? One of the biggie telecoms plays will surely come in?

Salty.

[qs99] 28/10/2021 08:07

Cracking set of results IMO....leverage down to 1.5, divi up, profits storming, decent outlook....DYOR

[timbo_slice] 28/10/2021 07:46

Chalk and cheese compared to the presentation of the FRES results yesterday.

[robsy2] 28/10/2021 07:43

Airtel Africa plc

Results for half year ended 30 September 2021

Strong growth across the Group, doubling profit after tax, increased cash generation, lower leverage and dividend upgrade.

What an astonishingly good set of results. Looks like everything is running well.
If they keep this up then they will hit FY 2024 projections in FY2022. Basic EPS 4.6 v 3 cents. New progressive divi policy based on a 4 cent payout in FY2022, with rises of 5-10% per year, massive debt repayments , margin improvements and serious growth across all divisions.
Just couldn't ask for more and with banking and mobile phone useage at under 50% in their markets , there is so much growth in the pipeline.
This must re-rate further.

[saltaire111] 28/10/2021 07:39

Superb results. Upgrade coming.

Salty

[robsy2] 23/10/2021 11:31

Thanks BF . I’ll take a look. I am hoping i am right in thinking this is growth stock with a value rating.

[bountyfull] 23/10/2021 11:08

A very good write up about AAF in this weeks Money Week Mag - basically saying buy due to strong growth prospects especially in mobile data and its provision of mobile banking and money transfer - this side of the business is growing at 30% a year. Mastercard bought a small stake in the subsidiary, which will allow AAF to invest more money in expansion. Well worth the read.

[2vdm] 21/10/2021 08:05

That's correct paulo435: London and Lagos, 13 October 2021: Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, will announce its results for the six months ending 30 September 2021 on 28 October 2021.

[paulo435] 20/10/2021 10:16

H1 results out next Thurs 28th I think

[robsy2] 22/9/2021 11:39

Sort of nibbled at 100p yesterday but it is there now. There should be a lot more to come I think.
They report quarterly, which is helpful if momentum is positive.
Onwards and upwards!

[qs99] 21/9/2021 12:52

A quiet board given AAF has breached £1 quite convincingly! DYOR

[tole] 08/9/2021 13:50

Another write on TMFhttps://www.fool.co.uk/investing/2021/09/08/a-small-cap-ftse-250-company-to-buy-now-and-hold-forever/

[tole] 05/9/2021 08:12

Yes think they've always just based their 'penny stock' definition as a stock which trades under a pound.. rather than including market cap.

[tenapen] 04/9/2021 20:29

@93p - I think the 'fools' are misunderstanding the term 'penny stock'.

Haha

[tole] 04/9/2021 16:15

Another penny stock I'd buyI think Airtel Africa (LSE: AAF) is a stock that could also deliver splendid returns over the next decade. The company offers telecoms and mobile money services across 14 African countries including continental powerhouses Nigeria and Kenya. It therefore has two chances to exploit soaring personal income levels in these emerging markets.Airtel Africa's customer base grew by 8.4% in the three months to June 2021, to a whopping 120.8m people. Its mobile data business grew its base by almost 15% year-on-year in the quarter. And its mobile money division's customer numbers rose by an eye-popping 25% over the period. No wonder major businesses like Mastercard and the Qatar Investment Authority have been lining up recently to buy a stake in Airtel's financial services business. EY Club estimates that as many as 60% of Nigerians, for example, don't have access to a bank account.It's important for me to remember that Airtel Africa isn't the only major player in these fast-growing markets. Telecoms titans like Vodafone and Africell are also spending heavily to build their own customer bases. Global blue-chips like Vodafone and local operators like PalmPay and Paystack are also rapidly investing in the mobile payments market. That doesn't quash my belief that Airtel Africa could still deliver explosive returns over the next 10 years, however.

[paulo435] 09/8/2021 21:54

Be good to see if we can break through the ATH of 96p now, looking promising.

[robsy2] 05/8/2021 19:46

Thanks Tole sums it up nicely.

[tole] 05/8/2021 17:21

https://www.fool.co.uk/investing/2021/08/05/should-i-buy-vodafone-shares-or-this-ftse-250-stock/When it comes to income stocks, Vodafone (LSE: VOD) shares are one of the most attractive investments in FTSE 100. However, the company has a rival in the FTSE 250. I think this particular stock may be a better investment for income and growth in the long run. A challenger to Vodafone sharesThat company is Airtel Africa (LSE: AAF). Like Vodafone, this is a telecommunications enterprise. But its core markets are in Africa, not Europe, as is the case with its FTSE 100 peer. I think this presents an exciting opportunity. Unlike Europe, the African telecoms market is still relatively underdeveloped, but it's expanding rapidly. Africa's young, growing population is becoming increasingly tech-enabled, driving demand for data and other telecom services. In some cases, Africa has almost skipped a technological generation. Consumers, who have never used a bank before have opened their first accounts through online financial institutions. By comparison, in many Western markets, consumers still rely on traditional high street banks. Airtel is also a leader of mobile money services across Africa. Its mobile money business is worth around $2.7bn and recently received investment from Qatar's sovereign wealth fund. Comparing the first quarter results for Airtel and Vodafone shows just how big the opportunity is for the former. For the quarter ended 30 June, Airtel's revenue increased 33%, while underlying earnings before interest, tax, depreciation and amortisation jumped 46%. Data revenues rose 37% and mobile money revenues increased 54%. Vodafone's revenues grew 5.6% in the first quarter. These figures suggest to me that, compared to Vodafone shares, Airtel is the better growth investment.FTSE 250 opportunityWhen it comes to income, Vodafone is an undisputed FTSE 100 champion with a dividend yield of around 6%, at the time of writing. However, Airtel isn't far behind. The stock currently offers a dividend yield of 3.3%. This seems small at first, but the payout is covered 2.2 times by earnings per share. As such, the company has more room to increase its payout in the years ahead.By comparison, Vodafone's payout cover is around one, which gives the company very little flexibility. For example, if earnings were to fall around 20%, management may have to cut the payout. Considering all of the above, I'd buy Airtel over Vodafone shares today. I think the company has a better growth profile, and while its dividend yield may be less than half of that of Vodafone, with a payout cover of 2.2 times, there is more room for growth. That said, I'm not going to take the company's growth for granted. Vodafone is struggling in Europe because the telecommunications market here is incredibly competitive. It also requires hefty investments, some of which may never earn a return.Airtel has been able to navigate these challenges, so far, but there's no guarantee it will continue to do so. As money floods into Africa, the market is only going to become more competitive. Still, I'd buy the stock today as an alternative to Vodafone, considering its potential and current dividend yield.

[robsy2] 04/8/2021 10:50

I’ve added.

[nemesis6] 04/8/2021 10:20

to put in rather

[nemesis6] 04/8/2021 10:17

desperately trying to raise funds in this before it gets to a quid and take off

[tole] 03/8/2021 17:06

https://www.fool.co.uk/investing/2021/08/03/2-of-the-best-cheap-uk-penny-stocks-for-me-to-buy-now/Telecoms titanAirtel Africa (LSE: AAF) could also be one of the best low-cost penny stocks for me to buy right now. At recent prices of 89p per share the African telecoms titan trades on a forward P/E ratio of seven times. This figure also sits inside the widely regarded bargain watermark of 10 times and below.It's true that Airtel Africa's markets are becoming increasingly competitive. Local operators like Africell and global giants such as Vodafone invest heavily are investing heavily in their networks. It's also correct that the penny stock's operations are highly capital intensive which can deal a blow to earnings growth. But I think this penny stock's long-term profits outlook still looks mighty exciting.A rapidly rising middle class in Airtel Africa's sub-saharan markets is driving telecoms demand to the stars. The boffins at Fitch think that there will be 1.1bn mobile subscribers by the end of the decade, up from around 851m as of last year. And looking away from telecoms for a second, I expect demand for Airtel Africa's mobile money services to balloon as demand for financial services also grows.

[mveleba] 31/7/2021 12:31

I think this is clever move. The possible IPO timing mentioned is four years. If the payment business goes crazy the company could still keep a large stake in the business if they wanted. It would provide cash for debt repayments or for growth or to distribute to shareholders. Depending on the terms of the deal (which wont be known to public) they could even have the option to repay the sovereign fund. I like it. Lets face it, land lines are never gonna take off in that part of region and banks don't need branches and wont need them in the future either, so payments via a phone is absolutely the future.

[ryesloan] 30/7/2021 14:51

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!

[robsy2] 30/7/2021 13:52

Hence the opportunity. This is a growth stock with a value rating. Just the money side is valued at 2.6billion usd. Gives little value to the remaining business.