Airtel Africa Share Discussion Threads

[tole] 06/11/2021 14:03

https://www.fool.co.uk/2021/11/05/former-penny-stock-airtel-africa-soars-10-on-banking-breakthrough/Former penny stock Airtel Africa soars 10% on banking breakthroughRoyston Wild | Friday, 5th November, 2021 | More on: AAFArrowings ascending on a chalkboard Image source: Getty Images.Telecoms play Airtel Africa (LSE: AAF) has soared 10% on Friday. That came after its sealed approval to launch banking operations in Nigeria. The former penny stock struck new all-time highs of 124.5p per share earlier in the session.Airtel Africa provides mobile telecoms services in 14 African countries as well as mobile money services. It said its subsidiary SMARTCASH Payment Service Bank Limited had received approval in principle to operate a payment service bank business in Nigeria.Final approval is subject to Airtel Africa meeting certain conditions within six months.Commenting on the news, chief executive Segun Ogunsany said: "The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services."Why it's a big dealAirtel Africa's Airtel Money division offers customers variety of services including payment services, loans, savings and international money transfers. It's a field that's enjoying breakneck growth. This is due to low levels of banking product penetration on the continent and rising wealth levels.Revenues at Airtel Money rocketed 42.7% in the six months to September, to $259m. This helped pull turnover at group level 25.2% higher to $2.27bn.Today marks the latest chapter in Airtel Money's expansion story. In early October the business announced a new partnership with African payments company, Flutterwave, to expand its money division across East Africa. That deal will allow customers in Tanzania, Zambia, Malawi, Kenya and Rwanda to receive and make payments from and to Airtel Money customers.

[kingharold] 05/11/2021 11:56

Will the punter who spent £607,000 buying on the spike recover it, I wonder?
Possibly after the closing bell, if he's lucky.

[paulo435] 05/11/2021 10:46

Loving it in fact :) …was a brief RNS so all good on the detail behind it it seems

[qs99] 05/11/2021 10:24

Market seems to like it lots!
DYOR

[qs99] 05/11/2021 09:57

Like the story even more now. Surely due a bigger re-rating is due?

DYOR

[saltaire111] 05/11/2021 07:31

London and Lagos, 05 November 2021: Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces that its subsidiary SMARTCASH Payment Service Bank Limited ("Smartcash") has been granted approval in principle to operate a payment service bank business in Nigeria

Good stuff!

Salty

[robsy2] 05/11/2021 07:19

I hear what you are saying Salty but of course it is re-rating and will continue to do so as it/ if it further proves its credentials. They are getting rid of anything peripheral, trimming debt, and focussing on customer acquisition and onselling these captive customers more product esp financial services.Getting this provisional license in Nigeria is another piece in the puzzle. The future looks bright here to my eyes. Keep buying I suppose.

[saltaire111] 04/11/2021 19:28

It’s getting cheaper. Why is this company not on a higher rating? Am I missing something? Is it the Africa risk? Surely this is an emerging market that is going gangbusters across several different countries with completely separate governments. so that kind of gives quite it quite a bit of diversification benefit.

I like it a lot. Filling my boots with this.

Salty.

[tole] 01/11/2021 07:55

https://www.thearmchairtrader.com/telecommunications-trade-african-growth-story/

[saltaire111] 28/10/2021 18:32

Ha! Yes, of course. Haha. Novice mistake!

So at 10.8p earnings, the PE is a shade over ten times.

[robsy2] 28/10/2021 18:24

Salty That's 7.6 cents I think. Still cheap though.

[saltaire111] 28/10/2021 18:12

Looking at the results for the half year, the EPS is 7.6p. If they match this in the second half of the year, that puts The PE on 7.2x with the share price at 110p. That’s astonishingly cheap for a company with an EBIDA margin of 48.3% (which is obscene!).

I guess it all depends on whether they can match the first half earnings in the second half.

Salty.

[tole] 28/10/2021 14:31

They’ve been bullish on AAF for the last year..

Link to the moneyweek article from last week below for anyone who’s not read it.

hxxps://moneyweek.com/trading/604009/airtel-africa-has-growth-on-speed-dial-heres-how-to-play-it

[saltaire111] 28/10/2021 14:31

@tole - thanks for posting the article above. Interesting.

Salty

[tole] 28/10/2021 14:08

https://www.fool.co.uk/2021/10/28/100-profit-growth-a-no-brainer-ftse-250-stock-id-buy-today/100% profit growth! A 'no-brainer' FTSE 250 stock I'd buy todayStuart Blair | Thursday, 28th October, 2021 | More on: AAFImage depicting web connectivity from a mobile phone Image source: Getty Images.Since its lows in May last year, the Airtel Africa (LSE: AAF) share price has tripled in value. This is mainly due to its recovery from the pandemic, as highlighted by a series of excellent results. Today was no different, with the FTSE 250 stock reporting profit before tax growth of 101% for its latest six months. This has seen the Airtel Africa share price rise over 10% today. As such, following the trading update, I'm very tempted to add more Airtel Africa shares to my portfolio. Here's why.Trading updateThe half-year trading update was strong across the board. Indeed, in comparison to the same period last year, revenues were 25% higher at $2.272bn. Further, the group saw revenue growth in each of its different segments, with mobile money showing particularly robust growth of 42%. This demonstrates that the company is still growing quickly.And unlike many other growth stocks, Airtel Africa is also recording strong profits, and it said profit before tax totalled $567m. As already stated, this is a 101% increase on last year's results. As profits rose quicker than revenues, it shows that the company is improving its operating efficiency. This is a good sign for the future, and hopefully, profits can continue to grow.The group's current profitability also means that the stock trades on a cheap valuation. In fact, using these results, Airtel Africa has a price-to-earnings ratio of around 9. This is lower than a large majority of other FTSE 250 stocks, and ratios under 10 often indicate that growth is either slow or negative. As this doesn't seem the case with Airtel Africa, I feel that it's undervalued.Other factorsNevertheless, this low P/E ratio may reflect some of the risks associated with the group. For example, while Africa is seen as a high-growth area, it's also seen as very unpredictable. In fact, Sub-Saharan Africa has recently experienced a third wave of coronavirus, caused due to vaccination levels remaining very low. Many African currencies, such as the Nigerian naira and the Zambian kwacha, have also seen devaluations recently. Both these factors may have a negative impact on Airtel Africa, something which makes it riskier than some other FTSE 250 stocks.But I'm confident that it can cope with these problems. For instance, the company has managed to consistently grow its customer base, which most recently reached 122.7m. The balance sheet has also been steadily improving, and net-debt-to-underlying EBITDA is now only 1.5x. I feel that this is sustainable.What am I doing with this FTSE 250 stock?Airtel Africa makes up the largest part of my portfolio, and I'm still tempted to buy more. Its growth is excellent, and it's accompanied with a dividend of around 4%. Its subsidiary, Airtel Money, is also delivering excellent growth, and this has prompted an investment from Mastercard. As such, while there are no doubt risks associated with this stock, there are too many positives to ignore in my view. Therefore, I believe that Airtel Africa is a 'no-brainer' buy for me so I may buy more.

[nemesis6] 28/10/2021 13:30

double the current price....has got to be

[timbo_slice] 28/10/2021 13:21

What price would you envision for a takeover .... or be happy with?

[qs99] 28/10/2021 13:21

agreed Salty, re-rating finally taking place it would seem....DYOR

[saltaire111] 28/10/2021 12:45

Looks like the market’s catching on. I’m not advocating a takeover but looking at the results and growth potential, not to mention the geographical diversification benefits this offers, I can’t see one of the major telco’s not stepping in.

Happy to hold long term and enjoy the growth too.

Salty.

[qs99] 28/10/2021 11:27

Any new broker notes anyone found yet? Would be really interested to see whether they have upgraded etc.

Agree 2vdm that as they de-leverage, increase divis and continue to deliver v. healthy EBITDA, unless the share price starts a re-rating then they would IMO be a prime takeover target! DYOR etc.

Cheers
Qs99

[2vdm] 28/10/2021 10:18

Very pleased I topped up with another £4ks worth last week at 98p, I'm also a LTH and hope we don't get taken out. The company is performing well across all divisions and generating cash. It would be good to see debt reduction over time

[robsy2] 28/10/2021 09:04

I hope we don't get taken over, as I am also a happy long-term holder. I've topped up again this morning.

[tigerbythetail] 28/10/2021 09:01

Good results. Happy long term holder.
The African market is growing quickly, and AAF will grow with it.

[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.