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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Airtel Africa Plc | LSE:AAF | London | Ordinary Share | GB00BKDRYJ47 | ORD USD0.50 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 106.80 | 106.80 | 107.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Radiotelephone Communication | 5.27B | 663M | 0.1764 | 6.06 | 4.02B |
From Apr 2023 to Apr 2024
TIDMAAF
RNS Number : 0842Z
Airtel Africa PLC
11 May 2023
Airtel Africa plc
Results for the year ended 31 March 2023
11 May 2023
Continuing to unlock growth, delivering double digit revenue growth and a resilient margin.
Highlights
Operating key performance indicators (KPIs)
-- Total customer base grew by 9.0% to 140.0 million, as the penetration of mobile data and mobile money services continued to rise, driving a 16.9% increase in data customers to 54.6 million and a 20.4% increase in mobile money customers to 31.5 million.
-- Constant currency ARPU growth of 7.4% was largely driven by increased usage across voice, data and mobile money.
-- Mobile money transaction value increased by 41.3%, with Q4'23 annualised transaction value exceeding $102bn in constant currency.
Financial performance
-- Revenue in constant currency grew by 17.6%, with revenues growing by 11.5% to $5,255m in reported currency.
-- While each segment's reported currency revenue growth was impacted by currency devaluation, they all delivered double-digit constant currency revenue growth. Across the Group mobile service revenue grew by 16.2% in constant currency, driven by voice revenue growth of 11.8% and data revenue growth of 23.8%. Mobile money revenue grew by 29.6% in constant currency.
-- Underlying EBITDA increased by 17.3% in constant currency, and 11.4% in reported currency to $2,575m, with an underlying EBITDA margin of 49.0%, reflecting the resilience of our operating model despite inflationary cost pressures.
-- Profit after tax was $750m, a decrease of only $5m, after including a higher foreign exchange and derivative losses of $245m.
-- Basic EPS at 17.7 cents was up by 5.2% due to higher operating profits and exceptional items gain on deferred tax credit recognition in Kenya, the DRC and Tanzania partially offset by higher foreign exchange and derivative losses. EPS before exceptional items was 13.6 cents, a reduction of 15.0%, largely due to higher foreign exchange and derivative losses of $245m. EPS before exceptional items and excluding foreign exchange and derivative losses was 20.6 cents, up by 13.4%.
Capital allocation
-- Capex increased by 14.0% to $748m, in line with our guidance, as we continue to invest for future growth. Additionally, we acquired spectrum in Nigeria, the DRC, Tanzania, Zambia and Kenya during the year.
-- In July 2022, the Group prepaid $450m of outstanding external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024. Cash at the holding companies was $398m. Leverage was at 1.4x in March 2023, broadly stable despite $500m of spectrum investment during the year.
-- The Board has recommended a final dividend of 3.27 cents per share, making the total dividend for FY'23 5.45 cents per share, an increase of 9% in line with our progressive dividend policy.
Sustainability strategy
-- The Group's inaugural Sustainability Report was published in October 2022, reflecting commitment to sustainability and detailing progress against the long-term goals as outlined in the sustainability strategy.
-- UNICEF partnership launched across 6 of our markets providing educational resources, free of charge, to more than 250,000 children this year on our way to reaching one million children by 2027.
-- The Group's ambition to achieve net zero by 2050 has progressed. We published our Scope 1, 2 and 3 baseline GHG footprint in October 2022 and in May 2023 announced our detailed plans to achieve over 60% reduction in Scope 1 and 2 emissions intensity by 2032.
Olusegun Ogunsanya, chief executive officer, on the trading update:
"Over the last year, the operating environment has been challenging in many ways, yet our strategic focus on providing reliable, affordable and accessible services across our markets has enabled us to sustain our top-line growth momentum. The resilience of our underlying EBITDA margins has shown the effectiveness of our operating model, despite significant inflationary and foreign exchange pressures. Strong customer and ARPU growth over the year demonstrates that demand for our services remains very strong and gives us the confidence to continue investing to support our future growth potential. Over the year, we invested $500m on additional spectrum, including 5G, across many of our OpCos which, combined with our capex, will underpin our growth ambitions. Despite this investment, and driven by a disciplined capital allocation policy, our balance sheet remains strong and has been further de-risked over the last year by the prepayment of $450m HoldCo debt in July last year. Currencies across our footprint have been under pressure, and the impact from the revaluation of our foreign currency denominated liabilities provided some headwinds in the last financial year. While currency devaluation is not in our control, we have plans to continue to mitigate its impact by growing our revenues at a faster pace than devaluation, with double-digit revenue growth in reported currency delivered this year and as we continue to reduce our foreign currency exposure across our balance sheet.
Our six-pillar strategy continues to provide the basis for stakeholder value creation by facilitating continued expansion of our services to enhance both digital and financial inclusion across Africa. This strategy will continue and will be underpinned by our sustainability strategy as articulated in our Sustainability Report published in October 2022.
I am pleased with this year's performance and wish to thank all our customers, business partners, governments and regulators for their support and our employees for their consistent contribution to the business' success. The macro-economic outlook remains volatile, but we are well positioned to deliver against the growth opportunities these markets offer, with a continued focus on margin resilience."
Hot Features
Premium
Alternative performance measures (1)
(Year ended)
------------------------------------------------------------------------
Description Mar-23 Mar-22 Reported Constant
currency currency
------------------------------
$m $m change change
------------------------------ ------- ------- ---------- ----------
Revenue 5,255 4,714 11.5% 17.6%
------------------------------ ------- ------- ---------- ----------
Underlying EBITDA 2,575 2,311 11.4% 17.3%
------------------------------ ------- ------- ---------- ----------
Underlying EBITDA margin 49.0% 49.0% (3) bps (14) bps
------------------------------ ------- ------- ---------- ----------
EPS before exceptional items
($ cents) 13.6 16.0 (15.0%)
------------------------------ ------- ------- ---------- ----------
Operating free cash flow 1,827 1,655 10.4%
------------------------------ ------- ------- ---------- ----------
( (1) Alternative performance measures (APM) are described on page 51.
GAAP measures
(Year ended)
-----------------------------------------------------------------
Description Mar-23 Mar-22 Reported
currency
-----------------------------------
$m $m change
----------------------------------- ------- ------- ----------
Revenue 5,255 4,714 11.5%
----------------------------------- ------- ------- ----------
Operating profit 1,757 1,535 14.5%
----------------------------------- ------- ------- ----------
Profit after tax 750 755 (0.6%)
----------------------------------- ------- ------- ----------
Basic EPS ($ cents) 17.7 16.8 5.2%
----------------------------------- ------- ------- ----------
Net cash generated from operating
activities 2,208 2,011 9.8%
----------------------------------- ------- ------- ----------
Airtel Africa plc ("Airtel Africa" or "Group") annual financial information contained in this report is drawn from Airtel Africa plc's audited annual consolidated financial statements for the years ended 31 March 2023 and 31 March 2022, prepared in accordance with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and approved for use in the United Kingdom (UK) by the UK Accounting Standards Endorsement Board (UKEB). Quarterly information is drawn from unaudited IAS 34 financials of respective periods. Comparative period figures have been regrouped/reclassified to conform with current year grouping/classification.
About Airtel Africa
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.
Airtel Africa offers an integrated suite of telecoms solutions to its subscribers, including mobile voice and data services as well as mobile money services, both nationally and internationally. We aim to continue providing a simple and intuitive customer experience through streamlined customer journeys.
Enquiries
Airtel Africa - Investor Relations Pier Falcione +44 7446 858 280 Alastair Jones +44 7464 830 011 Investor.relations@africa.airtel.com +44 207 493 9315 Hudson Sandler Nick Lyon Emily Dillon airtelafrica@hudsonsandler.com +44 207 796 4133
Conference call
Management will host an analyst and investor conference call at 12:00pm UK time (GMT) on Thursday 11 May 2023, including a Q&A session.
To receive an invitation with the dial in numbers to participate in the event, please register beforehand using the following link:
Conference call registration link
Key consolidated financial information
Description Unit Year ended Quarter ended
of measure
----------------- ------------------------------------------ ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
% % % %
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit and loss
summary
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Revenue (1) $m 5,255 4,714 11.5% 17.6% 1,341 1,222 9.7% 18.6%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue $m 2,491 2,358 5.6% 11.8% 619 611 1.2% 9.4%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 1,787 1,525 17.2% 23.8% 469 397 18.1% 28.0%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
revenue
(2) $m 692 553 25.1% 29.6% 176 147 20.1% 28.9%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Other revenue $m 437 407 7.5% 13.2% 116 102 13.4% 22.0%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Expenses $m (2,694) (2,413) 11.6% 18.0% (686) (616) 11.4% 20.3%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Underlying
EBITDA
(3) $m 2,575 2,311 11.4% 17.3% 659 608 8.3% 17.2%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Underlying
EBITDA (3) (14) (63) (58)
margin % 49.0% 49.0% bps bps 49.1% 49.7% bps bps
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Depreciation and
amortisation $m (818) (744) 9.9% 16.4% (220) (188) 17.0% 26.3%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating
exceptional
items (4) $m 0 (32) (100.0%) (100.0%) - (32) (100.0%) (100.0%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating profit $m 1,757 1,535 14.5% 20.1% 439 390 12.6% 22.1%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Net finance
costs
(5) $m (723) (403) 79.3% (204) (112) 82.4%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Non-operating
exceptional
items(6) $m - 92 (100.0%) - 82 (100.0%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit before
tax $m 1,034 1,224 (15.5%) 233 360 (35.4%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Tax $m (445) (471) (5.5%) (105) (122) (13.6%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Tax -
exceptional
items (7) $m 161 2 8373.4% 99 2 5101.1%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Total tax charge $m (284) (469) (39.5%) (6) (120) (95.0%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit after
tax $m 750 755 (0.6%) 227 240 (5.5%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Non-controlling
interest $m (87) (124) (30.0%) (32) (50) (37.1%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit
attributable
to owners of
the
company -
before
exceptional
items $m 512 602 (15.1%) 106 171 (38.1%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Profit
attributable
to owners of
the
company $m 663 631 5.2% 195 190 2.8%
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
EPS - before
exceptional
items cents 13.6 16.0 (15.0%) 2.8 4.6 (38.0%)
================= ============= ======== ======== ========== ========== ======= ======= ========== ==========
Basic EPS cents 17.7 16.8 5.2% 5.2 5.1 2.9%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Weighted average
no of shares million 3,752 3,754 (0.1%) 3,750 3,753 (0.1%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 748 656 14.0% 291 224 29.6%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating free
cash flow $m 1,827 1,655 10.4% 368 384 (4.1%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Net cash
generated
from operating
activities $m 2,208 2,011 9.8% 511 512 (0.3%)
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Net debt $m 3,524 2,941 3,524 2,941
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Leverage (net
debt to
underlying
EBITDA) times 1.4x 1.3x 1.4x 1.3x
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Return on
capital 101 128
employed (8) % 23.3% 22.3% bps 23.4% 22.1% bps
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 3.3 3.2 1.8% 7.4% 3.2 3.2 (0.0%) 8.1%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Total customer
base million 140.0 128.4 9.0% 140.0 128.4 9.0%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 54.6 46.7 16.9% 54.6 46.7 16.9%
----------------- ------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
customer
base million 31.5 26.2 20.4% 31.5 26.2 20.4%
----------------- -------- -------- ---------- ---------- ------- ------- ---------- ----------
(1) Revenue includes inter-segment eliminations of $152m for year ended 31 March 2023 and $129m for the prior period.
(2) Mobile money revenue post inter-segment eliminations with mobile services was $540m for year ended 31 March 2023, and $424m for the prior period.
(3) Underlying EBITDA includes other income of $13m for year ended 31 March 2023, and $10m for the prior period.
(4) Operating exceptional items of $32m in the year ended 31 March 2022 consists of a $12m provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party and $20m costs of agreeing historical spectrum fees in one of the Group's subsidiaries.
(5) Net finance costs of $723m, has increased $320m from the prior period largely due to higher foreign exchange and derivative losses of $245m mainly comprised of a $67m loss on derivatives and higher foreign exchange losses arising from the revaluation of balance sheet liabilities (a loss of $82m on devaluation of the Nigerian Naira, and other devaluation losses of $96m mainly arising from the Kenyan and Ugandan Shilling and Malawian and Zambian Kwacha).
(6) Non-operating exceptional items in the previous period include a gain of $111m on the sale of telecommunication tower assets in the Group's subsidiaries in Madagascar, Malawi, Rwanda and Tanzania, partially offset by costs of $19m on prepayment of $505m of bonds.
(7) Tax exceptional items in the year ended 31 March 2023 reflect the recognition of a deferred tax credit of $117m in Kenya, $25m in the Democratic Republic of the Congo and $19m in Tanzania, respectively.
(8) Return on capital employed (ROCE): The group has revised the computation of ROCE by grossing up the 'equity attributable to owners of the company' for put option provided to minority shareholders. The previous period ROCE has also been restated for this change.
Financial review for year ended 31 March 2023
Revenue in reported currency grew by 11.5%, with constant currency revenue growth of 17.6% partially offset by currency devaluation. The slowdown in revenue growth from the previous year was due to a loss of tower sharing revenues following the sale of towers in Madagascar, Malawi and Tanzania in the second half of the year and NIN-related [1] barring of voice services in Nigeria. Excluding these, the growth would have been approx. 21% in constant currency. Total revenue for mobile services and mobile money services combined grew in Nigeria by 20.3%, East Africa by 17.4% and Francophone Africa by 12.7%, respectively.
Revenue growth was recorded across all reporting segments, with mobile services revenue for the Group up by 16.2%, reflecting Nigeria growing by 20.3%, East Africa by 13.4% and Francophone Africa by 11.9%, respectively. Double digit revenue growth was recorded in both key services: voice revenue grew by 11.8% and data revenue by 23.8%. Mobile money revenue grew by 29.6% in constant currency, driven by 32.6% growth in East Africa and 20.3% growth in Francophone Africa.
Net finance costs increased by $320m, largely due to higher foreign exchange and derivative losses of $245m. This increase mainly comprised a $67m loss on derivatives and higher foreign exchange losses arising from the revaluation of balance sheet liabilities (a loss of $82m on devaluation of the Nigerian naira, and other devaluation losses of $96m mainly arising from the Kenyan and Ugandan shilling, Malawian and Zambian kwacha).
Total tax charges were lower by $185m mainly due to the recognition of a deferred tax credit of $117m in Kenya, $25m in the DRC and $19m in Tanzania. Non-controlling interests was down $37m due to the buy-back of minorities in Nigeria and lower minority allocation charges in Tanzania, partially offset by the increase in Airtel Money minority shareholdings.
EPS before exceptional items was 13.6 cents, a reduction of 15.0% largely because of higher foreign exchange and derivative losses of $245m. Basic EPS at 17.7 cents was up by 5.2% due to higher operating profits and exceptional items gain on deferred tax credit recognition in Kenya, the DRC and Tanzania partially offset by higher foreign exchange and derivative losses. EPS before exceptional items and excluding foreign exchange and derivative losses increased by 13.4%.
Our balance sheet has also been further de-risked by continued localisation of our debt into the OpCos and continued debt reduction in HoldCo, following the $450m HoldCo bond prepayment in July 2022. Leverage at 1.4x in March 2023 was broadly stable despite $500m spectrum investment during the year.
In terms of outlook, long-term opportunities remain attractive for us. Whilst mindful of currency devaluation and repatriation risks, we continue to work actively to mitigate all our material risks and deliver value for all our stakeholders.
GAAP measures
Revenue
Revenue grew by 11.5% to $5,255m in reported currency and by 17.6% in constant currency. The differential in growth rates was due to an average currency devaluation between the periods, mainly in the Central African franc (11.7%), which is largely pegged to the Euro, the Nigerian naira (6.1%), the Kenyan shilling (9.4%), the Ugandan shilling (4.9%) and the Malawian kwacha (22.6%), in turn partially offset by appreciation in the Zambian kwacha (8.8%). The revenue growth of 17.6% in constant currency growth was driven by both customer base growth of 9.0% and ARPU growth of 7.4%.
Mobile services revenue grew by 16.2% in constant currency supported by growth across the regions: Nigeria up by 20.3%, East Africa by 13.4% and Francophone Africa by 11.9%, respectively. Mobile services revenue growth was driven by both voice and data services, voice revenue grew by 11.8% and data revenue by 23.8%. Mobile money revenue grew by 29.6%, driven by 32.6% growth in East Africa and 20.3% in Francophone Africa.
The slowdown in revenue growth from the previous year was due to a loss of tower sharing revenues following the sale of towers in Madagascar, Malawi and Tanzania in second half of the year and NIN-related barring of voice services in Nigeria. Excluding these, the growth would have been around 21% in constant currency.
Operating profit
Operating profit increased by 14.5% in reported currency to $1,757m as a result of strong revenue growth and continued improvements in operating efficiency in East Africa and Francophone Africa.
Net finance costs
Net finance costs were $723m, an increase of $320m largely due to higher foreign exchange losses of $178m and higher derivative losses of $67m as a result of foreign exchange movements. The higher foreign exchange losses arose from the revaluation of balance sheet liabilities (including current and non-current borrowings and lease liabilities) following certain currency devaluations across most of our OpCos, including a loss of $82m on the devaluation of the Nigerian naira, and other devaluation losses of $96m mainly arising from the Kenyan and Ugandan shilling and Malawian and Zambian kwacha. Net finance costs (excl. foreign exchange and derivative losses) were $385m, an increase of $75m, largely driven by higher interest on lease liabilities. Interest costs on market debt were broadly flat.
The Group's effective interest rate increased to 7.7% from 5.6% in the prior period, largely driven by an increase in base rates, increase in local currency OpCo debt and the repayment of HoldCo bond, which had lower rate.
Taxation
Total tax charges were lower by $185m mainly due to the recognition of a deferred tax credit of $117m in Kenya, $25m in the DRC and $19m in Tanzania. Excluding exceptional items, tax was lower by $26m mainly due to the lower profit before tax on account of higher foreign exchange and derivative losses.
Profit after tax
Profit after tax was $750m, down by 0.6%, as growth in operating profit was offset by higher foreign exchange and derivative losses of $245m. Profit after tax excluding foreign exchange and derivative losses was up by 21.2%.
Basic EPS
Basic EPS was 17.7 cents, up by 5.2% from 16.8 cents in prior period. This increase was mainly due to higher operating profits and exceptional items gain on deferred tax credit recognition in Kenya, the DRC and Tanzania partially offset by higher foreign exchange and derivative losses.
Net cash generated from operating activities
Net cash generated from operating activities was $2,208m, up by 9.8% largely driven by higher operating profit which was partially offset by higher tax payments on the increased local profits and withholding tax on dividends by subsidiaries. While in some markets we faced instances of shortage of foreign currency within the local monetary system, we benefited from a broad geographical diversification which enables access to liquidity, with limited impact on the Group requirements.
Alternative performance measures [2]
Underlying EBITDA
Underlying EBITDA was $2,575m, an increase of 11.4% in reported currency and 17.3% in constant currency, driven by strong revenue growth. Underlying EBITDA margins were largely flat at 49.0% despite inflationary cost pressures, a drop of 3 basis points in reported currency and 14 basis points in constant currency. We continue to work towards mitigating the inflationary cost pressures through various cost initiatives.
Foreign exchange had an adverse impact of $281m on revenue, and $133m on underlying EBITDA, as a result of currency devaluations. Average currency devaluations between the periods were mainly in the Central African franc (11.7%), the Nigerian naira (6.1%), the Kenyan shilling (9.4%), the Ugandan shilling (4.9%) and the Malawian kwacha (22.6%), in turn partially offset by appreciation in the Zambian kwacha (8.8%).
With respect to currency devaluation sensitivity, on a 12-month basis, a 1% currency devaluation across all currencies in our OpCos would have a negative impact of $51m on revenues, $31m on underlying EBITDA and $23m on finance costs (excluding derivatives). Our largest exposure is to the Nigerian naira, for which a 1% devaluation would have a negative impact of $22m on revenues, $12m on EBITDA and $7m on finance costs (excluding derivatives).
Refer to the risk factors section for detailed disclosure on the currency devaluation risk posed to the Group.
Effective tax rate
The effective tax rate was 38.8%, compared to 39.0% in the prior period, due to profit mix changes amongst the OpCos. The effective tax rate is higher than the weighted average statutory corporate tax rate of approx. 33%, largely due to the profit mix between various OpCos and withholding taxes on dividends by subsidiaries.
Exceptional items
No operating exceptional items were incurred in the current year. Operating exceptional items in the previous period consists of a $12m provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party and $20m costs of agreeing historical spectrum fees in one of the Group's subsidiaries.
Non-operating exceptional items in the previous period include a gain of $111m on the sale of telecommunications tower assets in the Group's subsidiaries in Tanzania, Malawi, Madagascar and Rwanda, partially offset by one off costs of $19m (including applicable premium paid) on the early repayment of $505m bonds in March 2022.
The tax exceptional item in current period related to the recognition of a deferred tax credit of $117m in Kenya, $25m in the DRC and $19m in Tanzania.
EPS before exceptional items
EPS before exceptional items was 13.6 cents, a reduction of 15.0% largely as a result of higher foreign exchange and derivative losses of $245m. Excluding foreign exchange and derivative losses, the EPS before exceptional item was 20.6 cents, an increase of 13.4%.
Operating free cash flow
Operating free cash flow was $1,827m, up by 10.4%, as higher underlying EBITDA more than offset increased capital expenditure. Capital expenditure during the period increased $92m due to planned network expansion and investments into the PSB and data center opportunity in Nigeria.
Leverage
Leverage at 1.4x net debt/underlying EBITDA, was broadly stable despite $500m of spectrum investment during the year. Our balance sheet has also been further de-risked by continued localisation of our debt into the OpCos - now almost 60% of our OpCos debt is in local currency - and continued debt reduction in HoldCo. In July 2022, the Group prepaid $450m of external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024. Cash at the holding companies was $398m.
Other significant updates
Nigeria 2100MHZ license renewal
On 9(th) May 2023, we announced that our Nigerian subsidiary, Airtel Networks Limited ('Airtel Nigeria'), has made a payment of NGN58.7bn ($127.4m), payable to the Nigerian Communications Commission (NCC), to renew its 2x10MHz 2100 MHz spectrum licence. Once renewed, the licence will be valid for a period of 15 years following the expiry of the previous licence (30 April 2022).
This investment to renew the licence reflects our continued confidence in the opportunity inherent across the Nigerian market, supporting the local communities and economies through furthering digital inclusion and connectivity.
IFC loan facility
On 6 December 2022, we announced the signing of a new $194m facility with International Finance Corporation ('IFC'), a sister organisation of the World Bank and a member of the World Bank Group. The new financing facility is in line with Airtel Africa's strategy to increase debt within its operating companies.
The facility has a tenor of eight years, it is largely in local currency, and will be used to support our operations and investments in the Democratic Republic of Congo, Kenya, Madagascar, Niger, Republic of the Congo and Zambia, providing a more diversified access to local funding.
As part of IFC's loan facility, we committed to comply with the applicable requirements of IFC performance standards on social and environmental sustainability and has put in place a dedicated environmental and social action plan. This will further underpin the Group's commitment to transforming lives across the communities in which we operate and provide clarity on how the Group can help address inequality and support economic growth in these communities.
First sustainability-linked loan facility
On 10 August 2022, the Group announced the signing of a $125m revolving credit facility with Citi through its branch offices/subsidiaries in sub-Saharan Africa. This facility is in line with our strategy to raise debt in our local operating companies and will include both local currency and US dollar denominated debt. The facility has a tenor up to September 2024 and will be used to support our operations and investments in four subsidiaries. The facility provides potential interest rate savings in exchange for achieving social impact milestones relating to digital inclusion and gender diversity, with a focus on rural areas and women, and aligning with the Group's sustainability strategy , launched in October 2021. The facility further strengthens the Group's commitment to transforming lives across the communities which we serve.
Nigeria 4G and 5G spectrum acquisition
On 9 January 2023, we announced that Airtel Networks Limited ('Airtel Nigeria') had purchased 100 MHz of spectrum in the 3500 MHz band and 2x5 MHz of 2600 MHz from the Nigerian Communications Commission (NCC) for a gross consideration of $317m, paid in local currency. This additional spectrum will support our investments in network expansion for both mobile data and fixed wireless home broadband capability, including 5G rollout, providing significant capacity to accommodate our continued strong data growth in the country and exceptional customer experience.
Airtel Nigeria is Airtel Africa's largest market, with significant growth potential. The company led the industry in providing affordable 4G services across the country following the deployment of a fully modernised network which facilitated a four-fold increase in data traffic over the last three years. The penetration of data customers in Nigeria remains low, providing significant opportunity for future growth.
The acquisition of 5G spectrum will underpin our growth strategy by enabling the launch of higher speed connectivity to enhance customer service and accelerate digitalisation for consumers, enterprises and the public sector. The key benefits of 5G will include higher speeds, lower latency, significant network capacity as well as an improved user experience. Furthermore, the deployment of 5G will accelerate the availability and efficiency of fixed wireless access products across the country, contributing towards Airtel Nigeria's progress in meeting the National Broadband Plan targets. The acquisition of 2600 MHz spectrum will complement our already strong spectrum position in the market to enhance network capacity and future-proof our growth opportunity.
Other spectrum acquisitions
During the year, we acquired the following additional spectrum across our OpCos:
In October 2022, Airtel Tanzania plc purchased 110 MHz spectrum spread across the 2600 MHz (2 blocks of 2x15MHz) and 3500 MHz bands from the Tanzania Communications Regulatory Authority (TCRA) for a gross consideration of $60m.
Airtel Zambia purchased 60 MHz of additional spectrum in October 2022 spread across the 800 MHz and 2600 MHz bands from the Zambia Information and Communications Technology Authority (ZICTA), for a gross consideration of $29m, payable in local currency. Further, we acquired an additional 40 MHz of spectrum in the 2600 band for $12m in November 2022.
In July 2022, Airtel Kenya Networks Limited purchased 60 MHz of additional spectrum in the 2600 MHz band from the Communications Authority of Kenya, for a gross consideration of $40m, for a period of 15 years.
Airtel DRC purchased 58 MHz of additional spectrum, spread across 900 MHz, 1800 MHz, 2100 MHz and 2600 MHz bands, for a gross consideration of $42m in June 2022. The licence for paired spectrum in the 2100 MHz band comes up for renewal in September 2032. All the other licences continue until July 2036.
Launch of inaugural Sustainability Report
The publication of Airtel Africa's inaugural Sustainability Report on 27 October 2022 follows the launch of the Group's sustainability strategy in October 2021. The report reflects the Group's firm commitment to sustainability and details the business' progress against the goals outlined in the sustainability strategy. The report adheres to international best-practice ESG reporting standards, including the Global Reporting Initiative (GRI) Standards and TCFD recommendations.
The publication of the report constitutes an important step forward in enhancing the non-financial information transparency of the Group. The report provides accurate and verified Scope 1, 2 and 3 baseline emissions and total energy consumption.
Reducing our Scope 1 and 2 emissions in the near-term and commit to net zero by 2050
Airtel Africa is committed to achieving net zero GHG emissions by 2050. Following publication of our Scope 1, 2 and 3 emissions in the Sustainability Report in October 2022, the Group has identified a detailed range of initiatives that will enable the reduction of Scope 1 and 2 emissions intensity by over 60% by 2032 and enable a net zero ambition by 2050. We are undertaking a detailed technical and feasibility study to accurately define the optimal deployment schedule for Scope 1 and 2 decarbonisation initiatives. This work is led by a cross-functional taskforce which reports into the Sustainability Committee and is advised by the Carbon Trust, the leading environmental agency.
We have published details of our baseline calculations, our plans to reduce of Scope 1 and 2 emissions intensity and our management of this important goal on our corporate website www.airtel.africa.
In addition, we disclosed that Scope 3 emissions account for over 80% of our total GHG emissions. We will establish our Scope 3 decarbonisation strategy by working together with our partners and suppliers in the coming years to reduce emissions across our value chain. This follows a detailed consultation with our tier one partners who account for 78% of our Scope 3 emissions in Q4'23. We also undertook a detailed analysis of the of the results from an ESG self-assessment questionnaire (ESG SAQ) which was sent to our top 100 suppliers and vendors (by procurement spend) in September 2022 to gather information on their ESG standards, processes and policies. With the response rate of 79%, we are confident that we will establish a robust decarbonisation strategy for Scope 3 emissions.
Uganda listing obligation
Under Article 16 of Uganda's National Telecom Operator ('NTO') licence, Airtel Uganda limited is obliged to comply with the sector policy, regulations and guidelines requiring the listing of part of its shares on the Uganda Stock Exchange. The current Uganda Communications (Fees & Fines) (Amendment) Regulations 2020, creates a public listing obligation for all NTO licensees, and specifies that 20% of the shares of the operator must be listed within two years of the date of the effective date of the licence. This imposed a listing requirement by 15 December 2022 on Airtel Uganda. In April 2022, the company applied for an extension of time to list the shares, which was granted by the Regulator thereby extending the deadline to 16 December 2023. Preparatory steps are underway by Airtel Uganda and its advisors to comply with this deadline.
NIN: SIM linkage implementation in Nigeria
Following a directive issued by the Nigerian Communications Commission (NCC) on 7 December 2020 to all Nigerian telecom operators, all our customers were required to provide their valid National Identification Numbers (NINs) to update SIM registration records, with a final deadline of 31 March 2022.
In April 2022, the voice services for 13.6 million customers were barred due to non-submission of NIN information. As of March 2023, 6.4 million customers (47%) have subsequently submitted their NINs and 3.5 million customers (26%) have been fully verified and unbarred. Revenue growth for the year ended 31 March 2023 was impacted by the effect of barring outgoing voice calls in Nigeria for those customers who had not submitted their NINs. We estimate that this resulted in the loss of approx. $110m of revenues in the period, providing a drag on revenue growth of almost 2.4% at Group level (impact of 6% in Nigeria).
We continue to work closely with the regulator and impacted customers to help them to comply with the registration requirements, making every effort to minimise disruption and ensure affected customers can continue to benefit from full-service connectivity as soon as possible, in line with our aim to drive increased connectivity and digital inclusion across Nigeria.
Nigeria mobile money operationalisation
On 29 April 2022, we announced that the Central Bank of Nigeria ('CBN') had confirmed that SmartCash Payment Service Bank Limited ('SmartCash'), had received final approval for a full Payment Service Bank ('PSB') licence, affording the Group the opportunity to deliver a full suite of mobile money services in Nigeria. This news followed our announcement of 26 April 2022 that the CBN had also awarded our subsidiary, Airtel Mobile Commerce Nigeria Ltd, with a full super-agent licence, allowing the business to create an agency network that can service the customers of licensed Nigerian banks, payment service banks and licenced mobile money operators in Nigeria.
During the period we launched SmartCash, our Nigerian mobile money offering, initially in Lagos, before rolling out further across the country. One of our key commitments is to guarantee data privacy and security controls across the business to build trust and confidence in the brand. In that light, we have focussed our investments on the IT infrastructure and business systems and processes to ensure we meet this commitment. This investment, combined with our continued focus on the expansion of the distribution network, will drive increased access to financial services for underserved communities in Nigeria.
$450m early bond redemption
On 8 July 2022, the Group announced the settlement of a cash tender offer, redeeming $450m of the $1bn of 5.35% guaranteed senior notes due 2024 ('Notes'). An aggregate principal amount of $450m of notes was accepted for purchase for a total of $463m. All Notes accepted for purchase were cancelled ahead of their maturity in May 2024. This early redemption was made out of the Group's cash reserves and is in line with our strategy of reducing external foreign currency debt at a Group level.
Dividend payment timetable
The board has recommended a final dividend of 3.27 cents per share for the financial year ended 31 March 2023, payable on 26 July 2023 to shareholders recorded in the register at the close of business on 23 June 2023.
Last day to trade shares cum dividend 21 June 2023 Shares commence trading ex-dividend 22 June 2023 Record date 23 June 2023 Currency election date 10 July 2023 Payment date 26 July 2023
Information on additional KPIs
An investor relations pack with information on the additional KPIs and balance sheet is available to download on our website at www. airtel.africa/investors
Strategic overview
The Group provides telecoms and mobile money services in 14 emerging markets of sub-Saharan Africa. Our markets are characterised by huge geographies with relatively sparse populations, high population growth rates, high proportions of youth in the population, low smartphone penetration, low data penetration and relatively unbanked populations. Unique mobile user penetration across the Group's footprint is around 47%, and banking penetration remains under 50%. These indicators illustrate the significant opportunity still available to Airtel Africa to enhance both digital and financial inclusion in the communities we serve, enriching and transforming their lives through digitalisation, whilst at the same time growing our revenues profitably across each of our key services of voice, data and mobile money.
The Group continues to invest in its network and distribution infrastructure to enhance both mobile connectivity and financial inclusion across our countries of operation. In particular, we continued to invest in expanding our 4G network footprint to increase data capacity in our networks to support future business growth, as well as deploying new sites, especially in rural areas, to enhance coverage and connectivity.
We describe our 'Win with' strategy through six strategic pillars. Our customers lie at the core of our strategy, through our fundamental purpose around transforming lives.
Our focus on digitalisation, of both our products and services and our internal systems and processes, increasingly functions as a catalyst, or an 'accelerator', for each of our strategic pillars.
Underpinning the Group's business strategy for growth is our sustainability strategy which supports our well--established corporate purpose of transforming lives and our continued commitment to driving sustainable development and acting as a responsible business. We launched our sustainability strategy in October 2021, setting out our goals and commitments to foster financial inclusion, bridge the digital divide, and serve more customers in some of the least penetrated telecommunication markets in the world. Our sustainability strategy is at the heart of everything we do, shaping how we reduce our environmental impact, drive equitable digital and financial inclusion, create rewarding jobs, and help build the vital education services that are critical for lifting millions of families out of poverty. It is also aligned with UN Sustainable Development Goals (UN SDGs), and we developed our long-term goals and the targets to demonstrate how we plan to achieve these goals. This structure ensures we have absolute clarity around the contribution we can make to the UN SDGs and how we can help to address inequality and support economic growth across Africa. We reported against progress we have made in our inaugural Sustainability Report 2022.
This year, we continued to make strong progress across each of our core strategic pillars: 'Win with technology' (to reflect the importance of IT capabilities and technology in reaching our customers, this year we renamed this pillar from 'Win with network' to 'Win with technology'), 'Win with distribution', 'Win with data', 'Win with mobile money', 'Win with cost' and 'Win with people'.
Win with technology
The Group remains focused on delivering a best-in-class service, expanding 4G networks and preparing for future 5G demand by investing in 5G spectrum in its key markets. Reaching underserved communities is a key priority for us, and we continue to increase rural coverage through new site rollouts, additional spectrum and new technology investments across our markets - despite inflationary challenges during the year.
As part of ensuring we are ready for 5G demand, in addition to purchasing spectrum, we grew our fibre infrastructure and tested our 5G capabilities. After exploring the potential for additional third-party revenue streams, we have invested in data centres to further support digital inclusion across our markets. We continued to strengthen our fibre business, which is now delivering encouraging revenue growth. During the period we have added a further 6k km of fibre, with a total of 70.5k km of fibre now deployed and we continued to improve our fibre provision in metro, intercity, and international networks, including through cost-effective partnerships and co-investment programmes. Additionally, we expanded our international data capacity via submarine cables by 36% to 1,297Gbps through a combination of adding additional routes and capacity.
Overall, the capacity investment has resulted in a 41.2% increase in data capacity - reaching 23,900+ terabytes (TB) per day, with peak hour data utilisation at 47.4% allowing for increased network resilience and an enriched service continuity.
The Group has continued to invest in spectrum across a number of markets which will underpin its growth ambitions. In Nigeria, we acquired 5G spectrum in the 3500 MHz band, and also added to our 2600 MHz spectrum. In our other OpCos, we acquired spectrum in Tanzania, Zambia, Kenya, the DRC and the Seychelles. These allocations will help us to maximise network capacity and coverage.
Capital expenditure related to investment activities during the period was $748m, excluding spectrum acquisitions and licence renewals.
Win with distribution
Sub-Saharan Africa is characterised by low penetrated markets, with unique subscriber penetration at 47%. The Group's strategy is to build assured availability of service through the deployment of exclusive retail footprint and ensuring sufficient resourcing to drive revenue generation at each distribution site.
We continue to strengthen our exclusive channel of kiosks/mini-shops and Airtel Money branches along with multi-brand outlets in both urban and rural markets. We provide a simplified and enhanced Know Your Customer (KYC) app to provide a seamless customer onboarding experience. These have enabled us to add customers, resulting in customer base growth of 9.0 %, and helped us grow voice revenue by 11.8% in constant currency.
The Group continued its investment in strengthening our distribution network infrastructure, with a focus on rural distribution networks. During the period, the Group expanded its exclusive franchise stores, adding around 9,000 kiosks and mini shops (taking the total to almost 62,000 kiosks) across our footprint. The Group also added more than 52,700 activating outlets, up by 21%.
Win with data
The Group continued to invest in the expansion of our 4G network, adding significant data capacity to the network at only marginal cost, expanding both home broadband and enterprise business services to greater leverage the 4G network capacity; growing data ARPU and data revenue. We continue to focus on increasing smartphone sales through the expansion of our network of smartphone device selling outlets.
Our improved 4G network supported our drive to increase smartphone penetration, data customer penetration and the uptake of larger data volumes, resulting in greater data consumption per customer. Smartphone penetration was up by 2.1 percentage points to 36.3% and our data customer base grew by 16.9%, now representing 39.0% of our total customer base.
Data usage per customer reached 4.4 GB per month (from 3.4 GB) led by an increase in smartphone penetration and expansion of our home broadband and enterprise customers. This helped us to grow data revenue by 23.8% in constant currency. Growing 4G penetration and the data usage of customers helped us to grow data ARPU by 9.3%. 4G data usage constituted 76.9% of total data usage on the network in Q4'23 with 4G data usage per customer reaching 7.6 GB per month, up by 29.6% in Q4'23.
Win with mobile money
The Group has continued to drive financial inclusion. The low penetration of traditional banking services across our footprint leaves a large number of unbanked customers whose needs can be largely fulfilled through mobile money services. We aim to drive the uptake of Airtel Money services in all our markets, harnessing the ability of our profitable mobile money business model to enhance financial inclusion in some of the most 'unbanked' populations in the world.
During the period, we launched SmartCash in Nigeria. Services were initially made available at selected retail touchpoints, and operations are now being expanded gradually across the country.
We continued to expand our exclusive distribution channel of Airtel Money branches (AMBs) and kiosks to ensure availability of services to customers even in the rural areas. The number of kiosks and mini shops increased by 17% and Airtel Money branches by almost 12%. Further, non-exclusive channel of mobile money agents expanded by 44%. Our distribution expansion and enhanced offerings helped drive 20.4% growth in our mobile money customer base, now serving 31.5 million customers, which represents 22.5% of our total customer base.
Along with data, mobile money continues to be one of our fastest growing services, delivering revenue growth of 29.6% in FY'23. It is an increasingly important part of our business, delivering $102bn of Q4'23 annualized transaction value and accounting for 13.1% of total revenue in Q4'23.
Mobile money ARPU increased by 6.8% in constant currency over the period, driven by increased transaction values and higher contributions from cash transactions, P2P transfers and mobile services recharges through Airtel Money.
Win with cost
The telecom industry continues to get impacted by macro-economic factors in our key markets. Despite the impact of inflationary pressure across the Group and significant fuel price increase in Nigeria, our 'Win with cost' initiatives have supported the resilience of our profitability.
Our operating cost model is focused on enhancing cost efficiency through changes in the operating design and digitalisation initiatives. We embrace robust cost discipline and continuously seek to improve our processes to reduce operating costs, delivering one of the highest EBITDA margins in the industry. We also use the latest technology to optimally design our networks and improve our capital expenditure efficiency; enabling us to build large incremental capacities at lower marginal cost.
We are undertaking various cost efficiency initiatives to mitigate the headwinds, relating mainly to: (i) working with towercos to invest more in energy efficient equipment (including in lithium batteries and solar equipment), (ii) enhance grid connectivity, (iii) transmission re-routing to optimise lease line capacity and (iv) shift towards digital recharges, especially through Airtel Money to reduce commission pay-outs.
Win with people
Our values and culture continue to be critical to our ability to deliver on our business strategy and this is underpinned by a strong governance culture. Airtel Africa ways of working help us work together to build sustainable people engagement.
We measure employee engagement and sentiment through an engagement survey. Our engagement score increased upwards to 81% (up by 2 percentage points). Overall, our teams were positive and aligned to our values/ ethics, collaboration with cross functional teams and customer focus. We have commenced work to focus on key opportunity areas and remain committed to listening to what is important to our people, including having an open door policy, quarterly townhalls at the Group and OpCo level, and one-on-one engagements with our employees.
Over the last years, our talented and diverse people continue to demonstrate incredible adaptability, dedication, and resilience to deliver business results. We recognise the importance of having diverse teams in light of the diverse communities we serve across our 14 OpCos. Gender diversity and inclusion remains a key focus area and we are continuously striving to make further progress on this important agenda. Gender diversity within our organisation is currently as 26% and we had an increase of different nationalities to 39. We have placed additional focus on accelerating the recruitment and promotion by merit of female talent within the business.
Assessing our current capabilities and how we are equipped to prepare our workforce for the future is at the focus of our learning and development plans. Building leadership capability and strong functional expertise guided by our way of working framework is a key driver of our performance and how we do business. Examples of our capability development programmes include Airtel Africa mobility programme and 'Women in tech' programme which will help us accelerate leadership and functional expertise.
At Airtel Africa, we have a have a high performance culture that is based on simple and consistent metrics that drive business priorities. This is aligned to our reward philosophy where individual employees implement business strategy through key results areas and where reward is based on a 'pay for performance' philosophy.
We continue to act in ways to improve people's lives: from our employees to those in the communities we serve.
Financial review for the year ended 31 March 2023
Nigeria - Mobile services
Description Unit Year ended Quarter ended
of
measure
---------------------- ---------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised statement
of
Operations
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 2,128 1,878 13.3% 20.3% 543 507 7.1% 18.7%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue
(1) $m 1,053 985 6.9% 13.4% 262 268 (2.4%) 8.2%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 884 734 20.4% 27.8% 230 194 18.5% 31.3%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other revenue
(2) $m 191 159 20.2% 27.5% 51 44 14.1% 26.4%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 1,099 1,043 5.3% 11.8% 284 285 (0.3%) 10.5%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(390) (389) (387) (387)
EBITDA margin % 51.6% 55.5% bps bps 52.3% 56.1% bps bps
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
and amortisation $m (344) (268) 28.6% 36.9% (97) (71) 35.0% 49.6%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating exceptional
items $m - - 0.0% 0.0% - - 0.0% 0.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating profit $m 719 770 (6.6%) (1.0%) 177 208 (15.0%) (5.8%)
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 293 249 17.7% 17.7% 126 67 88.5% 88.5%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating free
cash flow $m 806 794 1.5% 10.0% 158 218 (27.5%) (13.3%)
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Total customer
base million 48.4 44.4 9.0% 48.4 44.4 9.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 23.8 20.3 17.3% 23.8 20.3 17.3%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile services
ARPU $ 3.8 3.8 0.8% 7.0% 3.8 3.9 (3.4%) 7.0%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) Voice revenue includes inter-segment revenue of $1m in the year ended 31 March 2023 and $1m in the prior period. Excluding inter-segment revenue, voice revenue was $1,052m in year ended 31 March 2023 and $984m in the prior period.
(2) Other revenue includes inter-segment revenue of $2m in the year ended 31 March 2023 and $2m in the prior period. Excluding inter-segment revenue, other revenue was $189m in year ended 31 March 2023 and $157m in the prior period.
In reported currency, Nigeria revenue grew by 13.3% to $2,128m and 20.3% in constant currency. Strong growth in both voice and data contributed to revenue growth, driven mainly by overall customer base growth of 9.0% and data customer base growth of 17.3%. ARPU grew by 7.0%, largely driven by higher data and other revenue. Q4'23 revenue growth at 18.7% was lower compared to 23.1% in Q3'23 mainly due to a shortage of cash in the country as a result of the demonetisation initiative, which impacted our cash recharges (50% of total recharges are cash based).
Voice revenue increased by 13.4% in constant currency, largely driven by customer base growth of 9.0% supported by voice ARPU growth of 0.9%. The barring of outgoing calls for customers who had not submitted their NINs had an adverse impact on voice revenue. A total of 13.6 million customers were originally barred, out of which 6.4 million customers (47%) have subsequently submitted their NINs and 3.5 million customers (26%) have been fully verified and unbarred. We estimate that this resulted in the loss of approx. $110m of revenues in year ended 31 March 2023, providing a drag on revenue growth of 6% in Nigeria.
Data revenue increased by 27.8% in constant currency, driven by both data customer base growth of 17.3% and data ARPU growth of 9.9%. Over the last year, we have enhanced our 4G network with ample data network capacity to provide high speed data to our customers with almost 100% of our sites now on 4G and data capacity increase of 27.5%. This has contributed to 4G data customer growth of 27.6%. Data usage per customer increased by 24.8% facilitating continued data ARPU growth. Data usage per customer reached 5 GB per customer per month from 4 GB per customer per month in the previous period. In Q4'23, 4G data usage per customer increased to 9.5 GB per month (up by 46.5%) from 6.5 GB per customer per month in prior period. 4G data usage now contributes to 80.4% of total data usage on our network.
Other revenues grew by 27.5% in constant currency, with the main contribution coming from the growth in value added services revenue, led by airtime credit services.
Nigeria mobile services EBITDA was $1,099m, up by 11.8% in constant currency. The EBITDA margin declined to 51.6% from 55.5% due to an increase in operating costs arising from inflationary pressures, particularly related to the fuel costs. The EBITDA margin in Q4'23 stabilised at 52.3% from 52.1% in Q3'23.
Operating free cash flow was $806m, up by 10.0%, due to the expansion of EBITDA partially offset by higher capex spend in current period.
East Africa - Mobile services (1)
Description Unit Year ended Quarter ended
of
measure
---------------------- ---------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised statement
of
operations
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,508 1,395 8.1% 13.4% 380 349 8.6% 18.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue
(2) $m 836 783 6.8% 12.2% 204 196 3.9% 12.9%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 537 457 17.6% 22.8% 140 118 18.5% 28.6%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other revenue
(3) $m 135 155 (12.8%) (7.8%) 36 35 2.3% 10.9%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Underlying EBITDA $m 753 672 12.1% 17.5% 193 171 12.7% 22.3%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Underlying EBITDA 177 174 182 179
margin % 49.9% 48.1% bps bps 50.7% 48.9% bps bps
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Depreciation and amortisation $m (260) (230) 12.8% 17.8% (70) (58) 20.4% 29.4% ---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Operating exceptional items $m 0 (32) (100.0%) (100.0%) - (32) (100.0%) (100.0%) ---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Operating profit $m 456 385 18.5% 24.5% 112 73 53.7% 68.6% ---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Capex $m 256 259 (1.0%) (1.0%) 97 110 (11.6%) (11.6%) ---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Operating free cash flow $m 497 413 20.4% 29.2% 96 61 56.2% 84.5% ---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Operating KPIs ---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Total customer base million 62.7 57.2 9.7% 62.7 57.2 9.7% ---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Data customer base million 21.9 18.3 19.9% 21.9 18.3 19.9% ---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- Mobile services ARPU $ 2.1 2.1 0.4% 5.3% 2.0 2.0 (1.0%) 7.6% ---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) The East Africa business region includes Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia.
(2) Voice revenue includes inter-segment revenue of $1m in the year ended 31 March 2023 and $1m in the prior period. Excluding inter-segment revenue, voice revenue was $835m in year ended 31 March 2023 and $782m in the prior period.
(3) Other revenue includes inter-segment revenue of $11m in the year ended 31 March 2023 and $9m in the prior period. Excluding inter-segment revenue, other revenue was $124m in year ended 31 March 2023 and $146m in the prior period.
In East Africa, mobile services revenue grew by 8.1% in reported currency, and 13.4% in constant currency. The differential in growth rates was due to average currency devaluation of the Kenyan shilling, Ugandan shilling and Malawian kwacha, partially offset by an appreciation in the Zambian kwacha. Current year was impacted by the loss of tower sharing revenues (c.$21m) following the sales of towers in Tanzania and Malawi which is reflected in the 7.8% decline in other revenues over the period. Revenue growth, excluding the site sharing revenue impact of tower sales, was 15.2% for the period.
Voice revenue grew by 12.2% in constant currency, driven by both customer base growth of 9.7% and voice ARPU growth of 4.1%. The customer base growth of 9.7% was supported by the expansion of our network, enhanced coverage, and distribution infrastructure. Site count increased by 9.2% and activating outlets increased by 22.3%. Voice usage per customer increased by 10.0% to 384 minutes per customer per month resulted in voice ARPU growth of 4.1%. Total minutes on the network increased by 18.5% to 279.0 billion minutes.
Data revenue grew by 22.8% in constant currency, largely driven by both data customer base growth of 19.9% and data ARPU growth of 9.2%. The expansion of our 4G network and ample data network capacity helped us to grow both the data customer base and data usage. 90.4% of our total sites in East Africa are on 4G as compared with 85.8% in prior period. 47.3% of our total data customer base is on 4G which contributes to 70.9% of total data usage (in Q4'23). Data usage per customer increased by 28.3%, resulting in data ARPU growth of 9.2%, and data usage per customer reached 4.2 GB per customer per month from 3.3 GB per customer per month. In Q4'23, 4G data usage per customer increased to 6.5 GB per month from 5.5 GB per customer per month (up by 18.4% from the prior period).
Mobile services underlying EBITDA increased to $753m, up 17.5% in constant currency. Underlying EBITDA margin improved to 49.9%, an improvement of 174 basis points in constant currency, as a result of revenue growth and improved operating efficiencies.
Operating free cash flow was $497m, up by 29.2% in constant currency, largely due to expansion of underlying EBITDA.
Francophone Africa - Mobile services (1)
Description Unit Year ended Quarter ended
of
measure
---------------------- ---------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised statement
of
operations
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,090 1,033 5.5% 11.9% 282 258 9.3% 12.1%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice revenue
(2) $m 607 594 2.2% 8.8% 154 148 4.2% 7.1%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data revenue $m 366 334 9.6% 16.2% 98 84 16.9% 19.7%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other revenue
(3) $m 117 105 10.9% 15.3% 30 26 13.8% 15.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 476 425 12.0% 18.2% 124 109 13.9% 16.9%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
255 236 179 182
EBITDA margin % 43.7% 41.2% bps bps 44.0% 42.2% bps bps
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
and amortisation $m (190) (199) (4.7%) 1.7% (47) (46) 1.2% 4.3%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating exceptional
items $m - - 0.0% 0.0% - - 0.0% 0.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating profit $m 252 194 29.9% 35.5% 67 54 25.2% 28.0%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 151 114 32.5% 32.5% 57 40 40.7% 40.7%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating free
cash flow $m 325 311 4.5% 12.7% 67 69 (1.8%) 3.0%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Total customer
base million 28.9 26.8 7.8% 28.9 26.8 7.8%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 8.9 8.2 9.4% 8.9 8.2 9.4%
---------------------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile services
ARPU $ 3.3 3.4 (2.9%) 3.0% 3.3 3.3 1.4% 4.0%
---------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) The Francophone Africa business region includes Chad, Democratic Republic of the Congo, Gabon, Madagascar, Niger, Republic of the Congo, and Seychelles.
(2) Voice revenue includes inter-segment revenue of $3m in the year ended 31 March 2023 and $2m in the prior period. Excluding inter-segment revenue, voice revenue was $604m in year ended 31 March 2023 and $592m in the prior period.
(3) Other revenue includes inter-segment revenue of $3m in the year ended 31 March 2023 and $1m in the prior period. Excluding inter-segment revenue, other revenue was $114m in year ended 31 March 2023 and $104m in the prior period.
In Francophone Africa, mobile services revenue grew by 5.5% in reported currency and 11.9% in constant currency. The differential in growth rates was driven primarily by the 11.7% devaluation of the Central African franc.
Voice revenue increased by 8.8% in constant currency, mainly driven by customer base growth of 7.8%. With continued investments in network expansion and distribution infrastructure, total sites increased by 9.2% and activating outlets increased by 12% (exclusive outlets increased by 20%). Voice usage per customer grew by 10.1% to 150 minutes per customer per month thereby resulting in an 19.5% growth in total voice minutes on our network.
Data revenue increased by 16.2% in constant currency, driven by both customer base growth of 9.4% and data ARPU growth of 7.8%. We continue to expand our 4G network, with 69.0% of our sites in Francophone Africa on 4G (up from 65.3% in prior period) and data capacity on our network increased by 60.5%. Total data usage increased by 57.8% primarily driven by an increase in data usage per customer by 46.3% to 3.5 GB per customer per month compared with 2.4 GB in the prior period. As of Q4'23, 54% of the data customer base is on 4G, contributing to 72.4% of total data usage. Q4'23 4G data usage per customer increased to 5.6 GB per month (up by 18.4%) compared with 4.7 GB per customer per month.
Mobile services EBITDA at $476m, increased by 18.2% in constant currency. EBITDA margin improved to 43.7%, an improvement of 236 basis points in constant currency. However, the current year had a one-time opex benefit of approx. $19m in the first half, resulting in a normalized EBITDA margin for FY'23 of 42.0% - an improvement of 68 basis points in constant currency.
Operating free cash flow was $325m, increased by 12.7%, driven by the expansion in EBITDA and partially offset by higher capex.
Mobile services
Description Unit Year ended Quarter ended
of measure
------------------- ------------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised
statement
of operations
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue (1) $m 4,721 4,294 9.9% 16.2% 1,205 1,112 8.4% 17.3%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 2,491 2,358 5.6% 11.8% 619 611 1.2% 9.4%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 1,787 1,525 17.2% 23.8% 469 397 18.1% 28.1%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 443 411 7.6% 13.4% 117 104 13.4% 22.1%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Underlying EBITDA $m 2,329 2,140 8.8% 14.9% 602 564 6.7% 15.6%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Underlying EBITDA (51) (57) (79) (71)
Margin % 49.3% 49.8% bps bps 50.0% 50.8% bps bps
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
& Amortization $m (794) (697) 13.9% 20.6% (213) (176) 21.3% 31.0%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
Exceptional
Items $m 0 (32) (100.0%) (100.0%) - (32) (100%) (100%)
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Profit $m 1,428 1,348 5.9% 11.6% 358 335 7.0% 16.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 700 621 12.7% 12.7% 280 217 29.0% 29.0%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Free
Cash Flow $m 1,629 1,519 7.2% 15.8% 322 347 (7.2%) 7.2%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile voice
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Customer base million 140.0 128.4 9.0% 140.0 128.4 9.0%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice ARPU $ 1.5 1.6 (3.5%) 2.1% 1.5 1.6 (7.7%) (0.2%)
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile data
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data customer
base million 54.6 46.7 16.9% 54.6 46.7 16.9%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data ARPU $ 3.0 2.9 3.5% 9.3% 2.9 2.9 1.6% 10.1%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) Mobile service revenue after inter-segment eliminations was $4,715m in year ended 31 March 2023 and $4,290m in the prior year.
Overall mobile services revenue increased to $4,721m, up by 9.9% in reported currency, while growth in constant currency was 16.2%. Revenue growth was recorded across all regions and key services: Nigeria up by 20.3%, East Africa by 13.4% and Francophone Africa by 11.9%.
Voice revenue grew by 11.8% in constant currency, driven by both customer base growth of 9.0% and voice ARPU growth of 2.1%. Revenue growth for the first half of the year was slightly impacted by the effect of barring outgoing calls in Nigeria for those customers who had not submitted their National Identity Numbers ('NINs'). We continue to invest in our network to increase coverage, while also expanding our distribution infrastructure to drive further customer base growth.
Our continued expansion of network and distribution infrastructure helped drive customer additions. Voice usage per customer increased by 5.9%, resulting in Voice ARPU growth of 2.1%. Voice usage per customer increased to 272 minutes per customer per month from 257 minutes per customer per month and total minutes on the network increased by 16.0%.
Data revenue grew by 23.8% in constant currency, driven by strong growth in customer base of 16.9% and data ARPU growth of 9.3%. Revenue growth was recorded across all regions: Nigeria grew by 27.8%, East Africa by 22.8% and Francophone Africa by 16.2%. Data customer base growth of 16.9% resulted from the further expansion of our 4G network with 90.3% of total sites on 4G, up from 87.6% (almost 100% of sites in 6 OpCos are now on 4G). Total customers reached 54.6 million with 4G customers of 26.5 million, contributing to 48.5% of the total data customer base. Data usage per customer increased 29.1% driving data ARPU growth of 9.3%. Data usage per customer reached 4.4 GB per customer per month up from 3.4 GB per customer per month in the prior period. Q4'23 data usage per customer increased to 4.6 GB per month (up by 26.6%) and 4G data usage per customer at 7.6 GB per month from 5.9 GB per customer per month (up by 29.6%).
Mobile services underlying EBITDA was $2,329m, and grew by 14.9% in constant currency with an underlying EBITDA margin of 49.3%, declining 57 basis points in constant currency. The reduction in underlying EBITDA margin was due to an increase in operating costs in Nigeria reflecting energy price inflation.
Operating free cash flow was $1,629m, up by 15.8%, due to the expansion of underlying EBITDA partially offset by higher capex.
Mobile money(1)
Description Unit Year ended Quarter ended
of measure
------------------- ------------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Summarised
statement
of operations
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue (2) $m 692 553 25.1% 29.6% 176 147 20.1% 28.9%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Nigeria $m 0 0 - - 0 0 - -
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
East Africa $m 531 411 29.1% 32.6% 135 111 22.1% 32.7%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Francophone
Africa $m 161 142 13.4% 20.3% 41 36 13.3% 16.3%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 344 281 22.4% 26.4% 88 74 19.0% 27.9%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(107) (123) (45) (38)
EBITDA Margin % 49.8% 50.8% bps bps 49.8% 50.2% bps bps
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Depreciation
& Amortization $m (17) (14) 25.6% 31.6% (5) (4) 29.2% 38.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Profit $m 318 256 24.2% 28.0% 81 68 18.6% 27.2%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Capex $m 33 25 29.5% 29.5% 7 5 34.7% 34.7%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating Free
Cash Flow $m 311 256 21.7% 26.1% 81 69 17.3% 27.4%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating KPIs
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
customer base million 31.5 26.2 20.4% 31.5 26.2 20.4%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Transaction value $bn 88.6 64.4 37.4% 41.3% 24.3 16.8 44.5% 53.5%
------------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile money
ARPU $ 2.0 1.9 3.1% 6.8% 1.9 1.9 (1.3%) 5.9%
------------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(1) Mobile money consolidates the results of mobile money operations from all operating entities within the Group. Airtel Money Commerce BV (AMC BV) is the holding company for all mobile money services for the Group, and as of 31 March 2023, it consolidates mobile money operations from eleven OpCos, currently excluding operations in Nigeria, Tanzania and Republic of the Congo. It is our management's intention to continue work to transfer all these remaining mobile money operations into AMC BV, subject to local regulatory requirements.
(2) Mobile money service revenue post inter-segment eliminations with mobile services was $540m in the year ended 31 March 2023 and $424m in the prior year.
Mobile money revenue of $692m increased 25.1% in reported currency and 29.6% in constant currency. The constant currency growth was partially offset by average currency devaluations, mainly in the Central African franc (11.7%), the Ugandan shilling (4.9%) and the Malawian kwacha (22.6%), in turn partially offset by the appreciation in the Zambian kwacha (8.8%). Revenue growth of 29.6% was driven by both East Africa (up 32.6%) and Francophone Africa (up 20.3%). In Nigeria, mobile money services (SmartCash) was launched in June 2022. Our focus in the period has been to invest in the platform technology as well as the business systems and processes to ensure confidence and reliability in the platform. In addition, our continued investment into the agent network continues to gain traction, driving encouraging progress on customer acquisition over the last quarter.
Constant currency revenue growth of 29.6% was largely led by customer base growth of 20.4%. The continued investment in distribution infrastructure of exclusive channels of Airtel Money branches and kiosks, as well as the expansion of mobile money agents, helped us in driving strong customer growth.
The mobile money customer base reached 31.5 million, an increase of 20.4% and mobile money customer base penetration reached 22.5%, an increase of 2.1 percentage points. The expansion of distribution enhanced transaction value per customer by 16.4%, resulting in mobile money ARPU growth of 6.8%. Mobile money ARPU growth was largely driven by an increase in transaction values and higher contributions from cash transactions, merchant payments and mobile service recharges through Airtel Money.
Our mobile money transaction value grew by 41.3% and Q4'23 annualised transaction value crossed $102bn in constant currency. Q4'23 transaction value per customer reached $260 per month, an increase of 26.1% in constant currency. Mobile money revenue now accounts for 13.2% of total Group revenue for the year.
Mobile money EBITDA increased to $344m, up by 26.4% in constant currency. The drop in mobile money EBITDA margin was largely due to additional spend in Nigeria PSB related to the launch of SmartCash.
Regional Performance (mobile services and mobile money services combined)
Nigeria
Description Unit Year ended Quarter ended
of measure
---------------- ------------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 2,128 1,878 13.3% 20.3% 543 507 7.1% 18.7%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 1,053 985 6.9% 13.4% 262 268 (2.4%) 8.2%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 884 734 20.4% 27.8% 230 194 18.5% 31.3%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile Money
Revenue $m 0 0 - - 0 0 - -
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 191 159 20.2% 27.5% 51 44 14.1% 26.4%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 1,091 1,042 4.7% 11.1% 281 285 (1.2%) 9.5%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
(424) (423) (434) (435)
EBITDA Margin % 51.3% 55.5% bps bps 51.8% 56.1% bps bps
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
KPI
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 3.8 3.8 0.8% 7.0% 3.8 3.9 (3.4%) 7.0%
---------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
East Africa
Description Unit Year ended Quarter ended
of measure
---------------- ------------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,931 1,717 12.5% 17.4% 487 436 11.7% 21.4%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 836 783 6.8% 12.2% 204 196 3.9% 12.9%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 537 457 17.6% 22.8% 140 118 18.5% 28.6%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile Money
Revenue $m 530 411 29.0% 32.6% 135 111 22.1% 32.7%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 131 152 (13.5%) (8.6%) 34 34 1.3% 10.4%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Underlying
EBITDA $m 1,030 881 16.9% 21.8% 264 228 15.8% 25.8%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Underlying 202 193 190 189
EBITDA Margin % 53.3% 51.3% bps bps 54.1% 52.2% bps bps
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
KPI
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 2.7 2.5 4.4% 9.0% 2.6 2.6 1.9% 10.7%
---------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Francophone Africa
Description Unit Year ended Quarter ended
of measure
---------------- ------------- ---------------------------------------- ----------------------------------------
Mar-23 Mar-22 Reported Constant Mar-23 Mar-22 Reported Constant
currency currency currency currency
change change change change
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Revenue $m 1,201 1,131 6.2% 12.7% 310 282 9.8% 12.6%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Voice Revenue $m 607 594 2.2% 8.8% 154 148 4.2% 7.1%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Data Revenue $m 366 334 9.6% 16.2% 98 84 16.9% 19.7%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Mobile Money
Revenue $m 161 142 13.4% 20.3% 41 36 13.3% 16.3%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Other Revenue $m 115 104 10.5% 15.1% 30 26 13.8% 15.8%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
EBITDA $m 560 500 12.0% 18.3% 145 127 14.3% 17.2%
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
242 220 185 185
EBITDA Margin % 46.6% 44.2% bps bps 46.9% 45.1% bps bps
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Operating
KPI
---------------- ------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
ARPU $ 3.7 3.7 (2.2%) 3.8% 3.6 3.6 1.9% 4.5%
---------------- ------- ------- ---------- ---------- ------- ------- ---------- ----------
Consolidated performance
Description UoM Year ended- March 2023 Year ended- March 2022
-------------- ----- ------------------------------------------------------- -------------------------------------------------------
Mobile Mobile Unallocated Eliminations Total Mobile Mobile Unallocated Eliminations Total
services money services money
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Revenue $m 4,721 692 (0) (158) 5,255 4,294 553 (0) (133) 4,714
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Voice
revenue $m 2,491 (0) (0) 2,491 2,358 (0) (0) 2,358
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Data revenue $m 1,787 - (0) 1,787 1,525 - (0) 1,525
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Other
revenue $m 443 - (6) 437 411 - (4) 407
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Underlying
EBITDA $m 2,329 344 (98) 0 2,575 2,140 281 (110) 0 2,311
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Underlying
EBITDA
margin % 49.3% 49.8% 49.0% 49.8% 50.8% 49.0%
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Depreciation
and
amortization $m (794) (17) (7) - (818) (697) (14) (33) - (744)
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Operating
exceptional
items $m - - - - (32) - - - (32)
-------------- ----- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Operating
profit $m 1,428 318 11 0 1,757 1,348 256 (69) 0 1,535
-------------- --------- ------- ------------ ------------- ------ --------- ------- ------------ ------------- ------
Risk factors
The Group's business and industry in which it operates together with all other information contained in this document, including, in particular, the risk factors are summarised below. Additional risks and uncertainties relating to the Group that are currently unknown to the Group, or those the Group currently deem immaterial may individually or cumulatively also have a material adverse impact on the Group's business, results of operations and financial position.
Summary of principal risks
1. We operate in a competitive environment with the potential for aggressive competition by existing players, or the entry of new players, which could both put a downward pressure on prices, adversely affecting our revenue and profitability.
2. Failure to innovate through simplifying the customer experience, developing adequate digital touchpoints in line with changing customer needs and competitive landscape could lead to loss of customers and market share.
3. An inability to invest and upgrade our network and IT infrastructure could affect our ability to compete effectively in the market.
4. Cybersecurity threats through internal or external sabotage or system vulnerabilities could potentially result in customer data breaches and/or service downtimes.
5. Adverse changes in our external business environment and macro-economic conditions such as supply chain disruptions, increase in global commodity prices and inflationary pressures could lead to a significant increase in our operating cost structure while also negatively impacting the disposable income of consumers. These adverse economic conditions therefore not only put pressure on our profitability but also on customer usage for our services.
6. Shortages of skilled telecommunications professionals in some markets and the inability to identify and develop successors for key leadership positions could both lead to disruptions in the execution of our corporate strategy.
7. Our internal control environment is subject to the risk that controls may become inadequate due to changes in internal or external conditions, new accounting requirements, delays, or inaccuracies in reporting.
8. Our telecommunications networks are subject to the risks of technical failures, aging infrastructure, human error, wilful acts of destruction or natural disasters.
9. We operate in diverse and dynamic legal, tax and regulatory environment. The group makes every effort to comply with its legal and regulatory obligations in all its operating jurisdictions in line with the group's risk appetite. However, we are continually faced with uncertain and constantly evolving legal and regulatory requirements in some of the markets where we operate.
10. Our multinational footprint means we are constantly exposed to the risk of adverse currency fluctuations and the macroeconomic conditions in the markets where we operate. We derive revenue and incur costs in local currencies where we operate, but we also incur costs in foreign currencies, mainly from buying equipment and services from manufacturers and technology service providers. That means adverse movements in exchange rates between the currencies in our OpCos and the US dollar could have a negative effect on our liquidity and financial condition. In some markets, we face instances of limited supply of foreign currency within the local monetary system. This not only constrains our ability to fully benefit at Group level from strong cash generation by those OpCos but also impacts our ability to make timely foreign currency payments to our international suppliers.
Given the severity of this risk, specifically in some of our OpCos, Group management continuously monitors the potential impact of this risk of exchange rate fluctuations based on the following methodology:
a) Comparing the average devaluation of each currency in the markets in which the Group operates against US dollar on 3-year and 5-year historic basis and onshore forward exchange rates over a 1-year period.
b) If either of the above devaluation is higher than 5% per annum, management selects the highest of these exchange rates.
c) Management then uses this exchange rate to monitor the potential impact of using such rate on the Group's income statement so that the Group can actively monitor and assess the impact on the Group's financials due to exchange rate fluctuations.
Based on the above-mentioned methodology, the weighted average yearly potential devaluation of the basket of currencies in which the Group is exposed is estimated to be in the range of 7% to 8%.
With respect to currency devaluation sensitivity, on a 12-month basis, a 1% currency devaluation across all currencies in our OpCos would have a negative impact of $51m on revenues, $31m on EBITDA and $23m on finance costs (excluding derivatives). Our largest exposure is to the Nigerian naira, for which a 1% devaluation would have a negative impact of $22m on revenues, $12m on EBITDA and $7m on finance costs (excluding derivatives).
This does not represent any guidance and is being used solely to illustrate the potential impact of further currency devaluation on the Group for the purpose of exchange rate risk management. The accounting under IFRS is based on exchange rates in line with the requirements of IAS 21 'The Effect of Changes in Foreign Exchange' and does not factor in the above-mentioned devaluation.
Based on above-mentioned specific methodology, for the identified OpCos, management evaluates specific mitigation actions based on available mechanisms in each of the geographies. For further details on such mitigation action refer to the risk section of the Annual Report.
Forward looking statements
This document contains certain forward-looking statements regarding our intentions, beliefs or current expectations concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the Group operates.
These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions.
It is believed that the expectations reflected in this document are reasonable, but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated.
All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual future financial condition, performance and results to differ materially from the plans, goals, expectations and results expressed in the forward-looking statements and other financial and/or statistical data within this communication.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are uncertainties related to the following: the impact of competition from illicit trade; the impact of adverse domestic or international legislation and regulation; changes in domestic or international tax laws and rates; adverse litigation and dispute outcomes and the effect of such outcomes on Airtel Africa's financial condition; changes or differences in domestic or international economic or political conditions; the ability to obtain price increases and the impact of price increases on consumer affordability thresholds; adverse decisions by domestic or international regulatory bodies; the impact of market size reduction and consumer down-trading; translational and transactional foreign exchange rate exposure; the impact of serious injury, illness or death in the workplace; the ability to maintain credit ratings; the ability to develop, produce or market new alternative products and to do so profitably; the ability to effectively implement strategic initiatives and actions taken to increase sales growth; the ability to enhance cash generation and pay dividends and changes in the market position, businesses, financial condition, results of operations or prospects of Airtel Africa.
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements contained in this document reflect the knowledge and information available to Airtel Africa at the date of preparation of this document and Airtel Africa undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.
No statement in this communication is intended to be, nor should be construed as, a profit forecast or a profit estimate and no statement in this communication should be interpreted to mean that earnings per share of Airtel Africa plc for the current or any future financial periods would necessarily match, exceed or be lower than the historical published earnings per share of Airtel Africa plc.
Financial data included in this document are presented in US dollars rounded to the nearest million. Therefore, discrepancies in the tables between totals and the sums of the amounts listed may occur due to such rounding. The percentages included in the tables throughout the document are based on numbers calculated to the nearest $1,000 and therefore minor rounding differences may result in the tables. Growth metrics are provided on a constant currency basis unless otherwise stated. The Group has presented certain financial information on a constant currency basis. This is calculated by translating the results for the current financial year and prior financial year at a fixed 'constant currency' exchange rate, which is done to measure the organic performance of the Group. Growth rates for our reporting regions and service segments are provided in constant currency as this better represents the performance of the business.
Airtel Africa plc
Results for the year ended 31 March 2023
Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
(All amounts are in US$ millions; unless stated otherwise)
For the year ended
------------------------------
Notes 31 March 2023 31 March 2022
-------------- --------------
Income
Revenue 5 5,255 4,714
Other income 13 10
5,268 4,724
Expenses
Network operating expenses 1,027 817
Access charges 410 407
License fee and spectrum usage charges 241 244
Employee benefits expense 287 297
Sales and marketing expenses 243 224
Impairment loss on financial assets 14 5
Other operating expenses 471 451
Depreciation and amortisation 818 744
3,511 3,189
Operating profit 1,757 1,535
Finance costs 752 441
Finance income (29) (19)
Other non-operating income - (111)
Share of profit from associate and joint venture accounted for using equity
method (0) (0)
Profit before tax 1,034 1,224
Income tax expense 7 284 469
Profit for the year 750 755
Profit before tax (as presented above) 1,034 1,224
Less: Exceptional items (net) 6 - (60)
Underlying profit before tax 1,034 1,164
------------------------------------------------------------------------------ ------ -------------- --------------
Profit after tax (as presented above) 750 755
Less: Exceptional items (net) 6 (161) (62)
Underlying profit after tax 589 693
------------------------------------------------------------------------------ ------ -------------- --------------
For the year ended
------------------------------
Notes 31 March 2023 31 March 2022
-------------- --------------
Profit for the year (continued from previous page) 750 755
Other comprehensive income ('OCI')
Items to be reclassified subsequently to profit or loss:
Loss due to foreign currency translation differences (350) (4)
Tax expense on above (3) (3)
Share of OCI of associate and joint venture accounted for using - 1
equity method
Net loss on net investments hedge - (8)
(353) (14)
-------------- --------------
Items not to be reclassified subsequently to profit or loss:
Re-measurement loss on defined benefit plans (0) (0)
Tax credit on above 0 0
(0) (0)
-------------- --------------
Other comprehensive loss for the year (353) (14)
-------------- --------------
Total comprehensive income for the year 397 741
============== ==============
Profit for the year attributable to: 750 755
Owners of the Company 663 631
Non-controlling interests 87 124
Other comprehensive loss for the year attributable to: (353) (14)
Owners of the Company (341) (12)
Non-controlling interests (12) (2)
Total comprehensive income for the year attributable to: 397 741
Owners of the Company 322 619
Non-controlling interests 75 122
Earnings per share
Basic 8 17.7c 16.8c
Diluted 8 17.7c 16.8c
Consolidated Statement of Financial Position
(All amounts are in US$ millions; unless stated otherwise) As of
------------------------------
Notes 31 March 2023 31 March 2022
-------------- --------------
Assets
Non-current assets
Property, plant and equipment 9 2,295 2,214
Capital work-in-progress 9 212 189
Right of use assets 1,497 1,109
Goodwill 10 & 11 3,516 3,827
Other intangible assets 813 632
Intangible assets under development 399 2
Investment accounted for using equity method 4 6
Financial assets
- Investments 0 0
- Derivative instruments 9 3
- Others 34 7
Income tax assets (net) 1 22
Deferred tax assets (net) 337 222
Other non-current assets 151 134
-------------- --------------
9,268 8,367
Current assets
Inventories 15 3
Financial assets
- Derivative instruments 4 3
- Trade receivables 145 123
- Cash and cash equivalents 12 586 638
- Other bank balances 12 131 378
- Balance held under mobile money trust 616 513
- Others 142 124
Other current assets 259 215
1,898 1,997
Total assets 11,166 10,364
============== ==============
Notes As of
-------------------------------------------------
31 March 2023 31 March 2022
-------------- ---------------------------------
Liabilities
Current liabilities
Financial liabilities
- Borrowings 13 945 786
- Lease liabilities 395 323
- Derivative instruments 5 9
- Trade payables 460 404
- Mobile money wallet balance 582 496
- Others 533 376
Provisions 83 121
Deferred revenue 183 162
Current tax liabilities (net) 194 220
Other current liabilities 192 176
3,572 3,073
Net current liabilities (1,674) (1,076)
Non-current liabilities
Financial liabilities
- Borrowings 13 1,233 1,486
- Lease liabilities 1,652 1,337
- Put option liability 569 579
- Derivative instruments 43 -
- Others 147 88
Provisions 21 20
Deferred tax liabilities (net) 108 114
Other non-current liabilities 13 18
-------------- ---------------------------------
3,786 3,642
Total liabilities 7,358 6,715
============== =================================
Net Assets 3,808 3,649
============== =================================
Equity
Share capital 14 3,420 3,420
Reserves and surplus 215 82
Equity attributable to owners of the company 3,635 3,502
Non-controlling interests ('NCI') 173 147
-------------- ---------------------------------
Total equity 3,808 3,649
============== =================================
The consolidated financial statements of Airtel Africa plc (company registration number: 11462215)
were approved by the Board of directors and authorised for issue on 10 May 2023 and were signed
on its behalf by:
For and on behalf of the board of Airtel Africa plc
Olusegun Ogunsanya
Chief Executive Officer
10 May 2023
Consolidated Statement of Changes in Equity
(All amounts are in US$ millions; unless stated otherwise)
Equity attributable to owners of the company Non-controlling Total
interests (NCI) equity
---------------- -------
Share Capital Reserve and Surplus Equity
attributable to
owners of the
company
----------------- ---------------- -------
No of Amount Retained Transactions Other
shares(4) earnings with NCI components
reserve of equity Total
--------------- --------- ------------- ----------- ------ ----------------- ---------------- -------
As of 1 April
2021 6,839,896,081 3,420 2,975 (594) (2,396) (15) 3,405 (52) 3,353
Profit for the
year - - 631 - - 631 631 124 755
Other
comprehensive
loss - - (0) - (12) (12) (12) (2) (14)
--------------- --------- ------------- ----------- ------ ----------------- ----------------
Total
comprehensive
income/(loss) - - 631 - (12) 619 619 122 741
Transaction with
owners of equity
Employee
share-based
payment reserve - - (1) - 3 2 2 - 2
Purchase of own
shares - - - - (6) (6) (6) - (6)
Transactions
with NCI - - - (348) (1) (349) (349) 153 (196)
Dividend to
owners of the
company - - (169) - - (169) (169) - (169)
Dividend
(including tax)
to NCI(1) - - - - - - - (76) (76)
------- ---------
As of 31 March
2022 6,839,896,081 3,420 3,436 (942) (2,412) 82 3,502 147 3,649
=============== ======= ========= ============= =========== ====== ================= ================ =======
Profit for the
year - - 663 - - 663 663 87 750
Other
comprehensive
income/ (loss) - - (0) - (341) (341) (341) (12) (353)
--------------- --------- -----------
Total
comprehensive
income /(loss) - - 663 - (341) 322 322 75 397
Transaction with
owners of equity
Employee
share-based
payment reserve - - (2) - 6 4 4 - 4
Purchase of own
shares - - - - (11) (11) (11) - (11)
Transactions
with NCI(2)(3) - - - 13 - 13 13 3 16
Dividend to
owners of the
company (refer
to Note
4(a)) - - (195) - - (195) (195) - (195)
Dividend
(including tax)
to NCI(1) - - - - - - - (52) (52)
--------------- ------- --------- ------------- ----------- ----------------- ---------------- -------
As of 31 March
2023 6,839,896,081 3,420 3,902 (929) (2,758) 215 3,635 173 3,808
=============== ======= ========= ============= =========== ====== ================= ================ =======
(1) Dividend to NCI include tax of $3m (March 2022: $4m).
(2) 'Transaction with NCI reserves' increased due to reversal of put option liability by $16m for dividend distribution to put option NCI holders. Any dividend paid to the put option NCI holders is adjustable against the put option liability based on the put option arrangement.
(3) 'Transaction with NCI reserves' was reduced and NCI was increased by $3m i.e. NCI's proportionate share of the consideration for transfer of SMARTCASH Payment Service Bank Limited from the control of AMC BV to Airtel Networks Limited. For details, refer to note 4(b).
(4) Includes ordinary and deferred shares, refer to Note 14.
Consolidated Statement of Cash Flows
(All amounts are in US$ Millions; unless stated otherwise)
For the year ended
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Cash flows from operating activities
Profit before tax 1,034 1,224
Adjustments for -
Depreciation and amortization 818 744
Finance income (29) (19)
Finance cost 752 441
Share of profit of associate and joint venture accounted for using equity
method (0) (0)
Other non-operating income adjustment - (111)
Other non-cash adjustments (1) 2 (6)
Operating cash flow before changes in working capital 2,577 2,273
Changes in working capital
Increase in trade receivables (45) (18)
(Increase) / decrease in inventories (13) 4
Increase in trade payables 9 34
Increase in mobile money wallet balance 120 64
(Decrease) / increase in provisions (32) 14
Increase in deferred revenue 37 27
Increase in other financial and non financial liabilities 92 50
Increase in other financial and non financial assets (140) (144)
Net cash generated from operations before tax 2,605 2,304
Income taxes paid (397) (293)
Net cash generated from operating activities (a) 2,208 2,011
-------------- --------------
Cash flows from investing activities
Purchase of property, plant and equipment and capital work-in-progress (779) (717)
Proceeds from sale of tower assets - 171
Purchase of intangible assets and intangible assets under development (502) (22)
Maturity of deposits with bank 350 301
Investment in deposits with banks(2) (126) (388)
Proceeds from sale of tower subsidiary (net of cash acquired) - 79
Investment joint venture (0) -
Dividend received from associate 2 -
Interest received 29 19
Net cash used in investing activities (b) (1,026) (557)
-------------- --------------
Cash flows from financing activities
Proceeds from sale of shares to non-controlling interests - 550
Acquisition of non-controlling interests - (164)
Purchase of own shares by ESOP trust (8) (6)
Proceeds from issue of shares to non-controlling interests - 2
Proceeds from borrowings 906 973
Repayment of borrowings (1,018) (2,115)
Repayment of lease liabilities (279) (251)
Dividend paid to non-controlling interests (75) (48)
Dividend paid to owners of the Company (195) (169)
Interest on borrowings and lease liabilities and other finance charges (400) (370)
Outflow on maturity of derivatives (net) (49) (9)
Net cash used in financing activities (c) (1,118) (1,607)
-------------- --------------
Increase/(decrease) in cash and cash equivalents during the year (a+b+c) 64 (153)
Currency translation differences relating to cash and cash equivalents (70) (3)
Cash and cash equivalent as at beginning of the year 847 1,003
Cash and cash equivalents as at end of the year (refer to Note 12)(3) 841 847
============== ==============
1. For the year ended 31 March 2023 and 31 March 2022, this mainly includes movement in trade receivables impairment and other provisions.
2. Includes investments in deposits with original maturity of more than 3 months and deposits placed against certain borrowings. These are included within other bank balances in the consolidated statement of financial position.
3. Includes balance held under mobile money trust of $616m (2022: $513m) on behalf of mobile money customers which are not available for use by the Group.
Notes to Consolidated Financial Statements
(All amounts are in US$ Millions; unless stated otherwise)
1. Corporate information
Airtel Africa plc ('the company') is a public company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales (registration number 11462215). The registered address of the company is First Floor, 53/54 Grosvenor Street, London, W1K 3HU, United Kingdom. The company is listed on the London Stock Exchange (LSE) and on the Nigerian Stock Exchange (NGX). The company is a subsidiary of Airtel Africa Mauritius Limited ('the parent'), a company registered in Mauritius. The registered address of the parent is c/o IQ EQ Corporate Services (Mauritius) Ltd., 33, Edith Cavell Street, Port Louis, 11324, Mauritius.
The company, together with its subsidiary undertakings (hereinafter referred to as 'the Group') has operations in Africa. The principal activities of the Group, its associate and its joint venture consist of the provision of telecommunications and mobile money services.
2. Basis of preparation
The results for the year ended 31 March 2023 are an abridged statement of the full annual report which was approved by the Board of Directors and signed on its behalf on 10 May 2023. The consolidated financial statements within the full annual report are prepared in accordance with the requirements of the Companies Act 2006 and International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) and approved for use in the United Kingdom (UK) by the UK Accounting Standards Endorsement Board (UKEB).
The financial information set out above does not constitute the company's statutory accounts for the years ended 31 March 2023 and 2022, but is derived from those accounts. Statutory accounts for March 2022 have been delivered to the Registrar of Companies and those for 2023 will be delivered following the company's annual general meeting.
The financial information included in this release announcement does not itself contain sufficient information to comply with IFRS. The company will publish full financial statements that comply with IFRS, in June 2023.
All the amounts included in the financial statements are reported in United States dollars, with all values rounded to the nearest millions ($m) except when otherwise indicated. Further, amounts which are less than half a million are appearing as '0'.
The accounting policies as set out in the following paragraphs of this note have been consistently applied by all the Group entities to all the periods presented in these financial statements.
3. Going concern
These consolidated financial statements have been prepared on a going concern basis. In making this going concern assessment, the Group has considered cash flow projections to June 2024 (going concern assessment period) under both base and reasonable worst-case scenarios taking into considerations its principal risks and uncertainties including a reduction in revenue and EBITDA and a significant devaluation of the various currencies in the countries in which the Group operates including the Nigerian Naira. As part of this evaluation, the Group has considered available ways to mitigate these risks and uncertainties and has also considered committed undrawn facilities of $525m expiring beyond the going concern assessment period, which will fulfil the Group's cash flow requirement under both the base and reasonable worst-case scenarios.
Having considered all the factors above impacting the Group's businesses, the impact of downside sensitivities, and the mitigating actions available including a reduction and deferral of capital expenditure, the directors are satisfied that the Group has adequate resources to continue its operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.
4. Significant transactions/new developments
a) The directors recommended and shareholders approved a final dividend of 3 cents per ordinary share for the year ended 31 March 2022, which was paid on 22 July 2022 to the holders of ordinary shares on the register of members at the close of business on 24 June 2022.
An interim dividend of 2.18 cents per share was also approved by the Board on 26 October 2022, which has been paid on 08 December 2022.
b) In April 2022, one of the Airtel Mobile Commerce BV's (AMC BV) subsidiaries, SMARTCASH Payment Service Bank Limited ('SMARTCASH'), received the final approval from the Central Bank of Nigeria for a full Payment Service Bank license affording it the opportunity to deliver a full suite of mobile money services in Nigeria.
Later in August 2022, in line with the directions of the Central Bank of Nigeria, SMARTCASH was transferred to Airtel Networks Limited (a subsidiary of Airtel Africa Group, outside the perimeter of AMC BV Group). Airtel Africa Group has agreed with non-controlling investors to compensate them for their respective potential loss of value by way of transferring additional AMC BV shares equivalent to the value of SMARTCASH on the prescribed trigger event date (subject to a cap of 5% of the value of AMC BV Group), which will only be payable in the event that SMARTCASH does not again form part of the AMC BV Group perimeter or the non-controlling investors do not own a direct shareholding in SMARTCASH based on regulatory approvals, by the prescribed trigger event date.
Given that the proposal to compensate the non-controlling investors is agreed, for their economic value loss due to exclusion of SMARTCASH (which they were entitled to before the transfer of SMARTCASH to Airtel Nigeria Limited) based on the future fair value of SMARTCASH on the prescribed trigger event date, Airtel Africa Group continues to recognise non-controlling interest w.r.t. net assets of SMARTCASH.
c) In June 2022, the Group announced the acquisition by Airtel Congo RDC S.A, a subsidiary of the Group, of 58 MHz of additional spectrum spread across the 900, 1800, 2100, and 2600 MHz bands for a gross consideration of $42m. An amount of $20m pertaining to the 900, 1800 and 2100 MHz bands has been capitalized as an intangible Asset and $22m pertaining to the 2600 MHz bands is carried as intangible asset under development since these bands are not yet available for use (expected to be available for use by June 2023).
d) On 7 July 2022, BAIN (one of the Group's subsidiaries) completed the early redemption of $450m of its $1 Billion of 5.35% Guaranteed Senior Notes due in 2024 for a consideration of $463m. The consideration included accrued interest up to the date of redemption and early redemption cost.
e) In July 2022, the Group announced the acquisition by Airtel Kenya, a subsidiary of the Group, of 60 MHz of additional spectrum in the 2600 MHz band from the Communications Authority of Kenya, for a gross consideration of $40m. The spectrum is valid from July 2022 for a period of 15 years. This cost has been capitalised as an intangible asset.
f) In October 2022, the Group announced the acquisition by Airtel Tanzania, a subsidiary of the Group, of 110 MHz of additional spectrum spread across the 2600 MHz (2 blocks of 2x15MHz) and 3500 MHz bands from the Tanzania Communications Regulatory Authority (TCRA) for a gross consideration of $60m. The spectrum is being carried as an intangible under development, since it is not available for use yet (expected to be available for use by August 2023).
g) In October 2022, the Group announced the acquisition by Airtel Zambia, a subsidiary of the Group, of 60 MHz of additional spectrum spread across the 800 MHz and 2600 MHz bands from the Zambia Information and Communications Technology Authority (ZICTA), for a gross consideration of $29m which has been capitalized as an intangible asset.
h) In December 2022 the Group paid $317m (in Nigerian Naira) to acquire 100 MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz band from the Nigerian Communications Commission. The 2600MHz and 3500MHz spectrum licenses are valid for a period of 10 years from January and July 2023 respectively. The spectrum has been carried as an intangible under development, since it is not yet available for use (expected to be available for use by July 2023).
i) During the year, Airtel Nigeria, a subsidiary of the Group, was offered renewal of 2100 MHz spectrum license by Nigerian Communications Commission (NCC) for a gross consideration of $127m, which was accepted by Airtel Nigeria. This cost was capitalized as an intangible asset and is being amortised over the useful life of the spectrum of 15 years. A corresponding liability was created for the amount payable for the renewal which has been subsequently paid in April 2023.
5. Segmental Information
The Group's segment information is provided on the basis of geographical clusters and products to the Group's chief executive officer (chief operating decision maker - 'CODM') for the purposes of resource allocation and assessment of performance.
The Group's reporting segments till 31 March 2022 were as follows:
Nigeria - Comprising operations in Nigeria;
East Africa - Comprising operations in Kenya, Uganda, Rwanda, Tanzania, Malawi and Zambia;
Francophone Africa - Comprising operations in Niger, Gabon, Chad, Congo B, the DRC, Madagascar and Seychelles.
Owing to significant growth in the Group's Mobile Money business and a corresponding change in the organization structure combined with changes in information provided to the CODM for the allocation of resources and the assessment of performance, with effect from April 2022, the Group has identified Mobile Money as a new operating and reportable segment. Thus, the segments for the Group are now:
Nigeria Mobile Services - Comprising of mobile service operations in Nigeria;
East Africa Mobile Services - Comprising of mobile service operations in Kenya, Uganda, Rwanda, Tanzania, Malawi and Zambia;
Francophone Africa Mobile Services - Comprising of mobile service operations in Niger, Gabon, Chad, Congo B, the DRC, Madagascar and Seychelles;
Mobile money services* - Comprising of mobile money services across the Group including the recently launched payment service bank in Nigeria.
*Mobile money services segment consolidates the results of mobile money operations from all operating entities within the Group. Airtel Money Commerce BV (AMC BV) is the holding company for all mobile money services for the Group, and as of 31 March 2023, it consolidates mobile money operations from eleven OPCOs, currently excluding operations in Nigeria, Tanzania, and Congo Brazzaville. It is management's intention to continue work to transfer all these remaining mobile money services operations into AMC BV, subject to local regulatory requirements.
Each segment derives revenue from the respective services housed within each segment, as described above. Expenses, assets and liabilities primarily related to the corporate headquarters and centralized functions of the Group are presented as Unallocated Items.
The amounts reported to CODM are based on the accounting principles used in the preparation of the financial statements. Each segment's performance is evaluated based on segment revenue and segment result.
The segment result is Underlying EBITDA (i.e. earnings before interest, tax, depreciation and amortization before exceptional items). This is the measure reported to the CODM for the purpose of resource allocation and assessment of segment performance. During the year ended 31 March 2023, EBITDA is equal to underlying EBITDA since there are no exceptional items pertaining to EBITDA.
Consequent to the change in reportable segments during the period, comparative information has also been restated in line with the revised segments.
Inter-segment pricing and terms are reviewed and changed by the management to reflect changes in market conditions and changes to such terms are reflected in the period in which the changes occur.
The 'Eliminations' column comprises inter-segment revenues eliminated upon consolidation.
Segment assets and segment liabilities comprise those assets and liabilities directly managed by each segment. Segment assets primarily include receivables, property, plant and equipment, capital work in progress, right-to-use assets, intangibles assets, inventories and cash and cash equivalents. Segment liabilities primarily include operating liabilities. Segment capital expenditure comprises investment in property, plant and equipment, capital work in progress, intangible assets (excluding licenses) and capital advances.
Investment elimination upon consolidation and resulting goodwill impacts are reflected in the 'Eliminations' column.
Summary of the segmental information and disaggregation of revenue for the year ended and as of 31 March 2023 is as follows:
Francophone Mobile Others Eliminations
Nigeria East Africa Africa Money (Unallocated)
Mobile Mobile Mobile Services
Services Services Services Total
------------ ------------ ------------ ------------ -------------- ------------- -------
Revenue from external
customers
Voice revenue 1,052 835 604 - - - 2,491
Data revenue 884 537 366 - - - 1,787
Mobile money
revenue(1) - - - 540 - - 540
Other revenue(2) 189 124 114 - 10 - 437
2,125 1,496 1,084 540 10 - 5,255
Inter-segment revenue 3 12 6 152 4 (177) -
Total revenue 2,128 1,508 1,090 692 14 (177) 5,255
Underlying EBITDA 1,099 753 476 344 (97) - 2,575
Less:
Depreciation and
amortisation 344 260 190 17 7 - 818
Finance costs 752
Finance income (29)
Share of profit of
associate and joint
venture accounted
for using equity
method (0)
Profit before tax 1,034
Other segment items
Capital expenditure 293 256 151 33 15 - 748
---------------------- ------------ ------------ ------------ ------------ -------------- ------------- -------
As of 31 March 2023
Segment assets 2,634 2,255 1,599 945 25,485 (21,752) 11,166
Segment liabilities 2,193 2,393 2,359 742 12,839 (13,168) 7,358
Investment accounted
for using equity
method (included in
segment assets
above) - - 4 - - - 4
(1) Mobile money revenue is net of inter-segment elimination of $152m mainly for commission on sale of airtime. It includes $103m pertaining to East Africa mobile services and balance $49m pertaining to Francophone Africa mobile services.
(2) Other revenue includes messaging, value added services, enterprise, site sharing and handset sale revenue.
Summary of the segmental information and disaggregation of revenue for the year ended and as of 31 March 2022 is as follows:
Francophone Mobile Others Eliminations
Nigeria East Africa Africa Money (Unallocated)
Mobile Mobile Mobile Services
Services Services Services Total
------------ ------------ ------------ ------------ -------------- ------------- -------
Revenue from external
customers
Voice revenue 984 782 592 - - - 2,358
Data revenue 734 457 334 - - - 1,525
Mobile money
revenue(1) - - - 424 - - 424
Other revenue(2) 157 146 104 - - - 407
1,875 1,385 1,030 424 - - 4,714
Inter-segment revenue 3 10 3 129 - (145) -
Total revenue 1,878 1,395 1,033 553 - (145) 4,714
Underlying EBITDA 1,043 672 425 281 (110) - 2,311
Less:
Depreciation and
amortisation 268 230 199 14 33 - 744
Finance costs 441
Finance income (19)
Other non-operative
Income, (net) (111)
Share of profit of
associate and joint
venture accounted
for using equity
method (0)
Exceptional items
pertaining to
operating profit - 32 - - - - 32
Profit before tax 1,224
Other segment items
Capital expenditure 249 259 114 25 9 - 656
---------------------- ------------ ------------ ------------ ------------ -------------- ------------- -------
As of 31 March 2022
Segment assets 2,247 1,886 1,485 776 27,396 (23,426) 10,364
Segment liabilities 1,438 2,450 2,358 588 14,458 (14,577) 6,715
Investment accounted
for using equity
method (included in
segment assets
above) - - 6 - - - 6
(1) Mobile money revenue is net of inter-segment elimination of $129m mainly for commission on sale of airtime. It includes $85m pertaining to East Africa mobile services and balance $44m pertaining to Francophone Africa mobile services.
(2) Other revenue includes messaging, value added services, enterprise, site sharing and handset sale revenue.
Geographical information disclosure based on location of statutory entity of non-current assets (PPE, CWIP, ROU, Intangible assets including goodwill and intangible assets under development):
As of
------------------------------
31 March 2023 31 March 2022
-------------- --------------
United Kingdom 0 1
Nigeria 2,379 1,670
Netherlands (including goodwill) 3,464 3,773
Others 2,889 2,529
Total 8,732 7,973
============== ==============
6. Exceptional items
Underlying profit before tax excludes the following exceptional items:
31 March 2023 31 March 2022
-------------- --------------
Profit before tax 1,034 1,224
Add: Exceptional items
- Gain on sale of tower assets (1) - (111)
- Spectrum fee agreement cost (2) - 20
- Bond prepayment cost (3) - 19
- Provision for settlement of contractual dispute (4) - 12
- (60)
-------------- --------------
Underlying profit before tax 1,034 1,164
-------------- --------------
(1) Represents the gain on the sale of telecommunication tower assets during the year ended 31 March 2022 in the Group's subsidiaries in Tanzania, Rwanda, Madagascar, and Malawi, as part of the Group's strategic asset monetisation programme recognised in other non-operating income.
(2) Represents cost of agreeing historical spectrum fees during the year ended 31 March 2022 in one of the Group's subsidiaries recognised in license fees and spectrum usage charges.
(3) Comprises cost of prepaying $505m bonds during the year ended 31 March 2022 with original maturity of March 2023 recognised in finance costs.
(4) Represents provision for expected settlement of a contractual dispute recognised during the year ended 31 March 2022 in which one of the Group's subsidiaries is a party recognised in other operating expenses.
Underlying profit after tax excludes the following exceptional items:
For the year ended
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Profit after tax 750 755
-Exceptional items (as above) - (60)
- Tax on above exceptional items - (2)
- Deferred tax asset recognition (1) (161) -
(161) (62)
-------------- --------------
Underlying profit after tax 589 693
============== ==============
(1) During the year ended 31 March 2023, the Group has recognised new deferred tax assets in Airtel Kenya. Airtel Kenya had carried forward losses and temporary differences on which deferred tax was not previously recognised. Considering Airtel Kenya's profitability trends, that tax losses have recently been utilised and on the basis of forecast future taxable profits, the Group has determined that it is now probable that taxable profits will be available against which the tax losses and temporary differences can be utilised. Consequently, the deferred tax asset recognition criteria are met, leading to the recognition of an additional deferred tax asset of $117m during the year ended 31 March 2023 in Airtel Kenya. Additionally, the Group has also trued up deferred tax assets in Airtel Tanzania and Airtel DRC amounting to $19m and $25m respectively on deductible temporary differences based on updated probability of future taxable profits in these subsidiaries.
Profit attributable to non-controlling interests include benefit of $10m and $33m during the year ended 31 March 2023 and 2022 respectively, relating to the above exceptional items.
7. Income Tax
For the year ended
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Current tax 408 347
Deferred tax (124) 122
-------------- --------------
Income tax expense 284 469
-------------- --------------
8. Earnings per share ('EPS')
For the year ended
31 March 2023 31 March 2022
-------------- --------------------------
Profit for the year attributable to owners of the Company 663 631
Weighted average ordinary shares outstanding for basic EPS(1) 3,751,665,898 3,754,179,962
Basic EPS 17.7c 16.8c
-------------- --------------------------
The details used in the computation of diluted EPS: For the year ended
------------------------------------------
31 March 2023 31 March 2022
-------------- --------------------------
Profit for the year attributable to owners of the Company 663 631
Weighted average ordinary shares outstanding for diluted EPS(1)(2) 3,756,867,853 3,760,109,303
Diluted EPS 17.7c 16.8c
-------------- --------------------------
(1) Deferred shares have not been considered for EPS computation as they do not have right
to participate in profits.
(2) The difference between the basic and diluted number of shares at the end of March 2023
being 5,201,955 (March 2022: 5,929,341) relates to awards committed but not yet issued under
the Group's share-based payment schemes.
9. Property, plant and equipment ('PPE')
The following table presents the reconciliation of changes in the carrying value of PPE for the year ended 31 March 2023 and 31 March 2022:
Leasehold Building Land Plant and Furniture Vehicles Office Computer Total Capital work in
Improvements Equipment(2) & Fixture Equipment progress(3)
-------------- ---------- ------ -------------- ----------- ---------- ----------- ---------- -------- -----------------
Gross carrying
value
Balance as of 1
April 2021 50 46 27 2,858 37 24 45 676 3,763 166
Additions /
capitalization 1 0 2 543 28 0 14 38 626 653
Disposals /
adjustments
(1) (0) (0) (2) (285) (2) (2) (4) (1) (296) (627)
Foreign
currency
translation
impact (2) 1 (1) (71) (1) (0) 0 (10) (84) (3)
Balance as of
31 March 2022 49 47 26 3,045 62 22 55 703 4,009 189
Additions /
capitalization 3 - 0 614 17 0 15 51 700 735
Disposals /
adjustments
(1) 0 - - (20) (3) (0) (3) (5) (31) (700)
Foreign
currency
translation
impact (3) (4) (1) (390) (6) (0) (6) (53) (463) (12)
Balance as of
31 March 2023 49 43 25 3,249 70 22 61 696 4,215 212
Accumulated
Depreciation
Balance as of 1
April 2022 44 17 1 936 15 22 27 635 1,697 -
Charge 1 3 0 364 10 0 9 31 418 -
Disposals /
adjustments
(1) 0 (0) (1) (241) (2) (2) (3) (3) (252) -
Foreign
currency
translation
impact (1) 0 (0) (56) (0) (0) (1) (10) (68) -
Balance as of
31 March 2022 44 20 0 1,003 23 20 32 653 1,795 -
Charge 1 2 - 374 13 0 13 32 435 -
Disposals /
adjustments
(1) (0) - - (18) (3) (0) (1) (5) (27) - Foreign currency translation impact (3) (3) (0) (222) (3) (0) (5) (47) (283) - Balance as of 31 March 20223 42 19 - 1,137 30 20 39 633 1,920 - Net carrying value As of 1 April 2021 6 29 26 1,922 22 2 18 41 2,066 166 As at 31 March 2022 5 27 26 2,042 39 2 23 50 2,214 189 As at 31 March 2023 7 24 25 2,112 40 2 22 63 2,295 212
(1) Related to the reversal of gross carrying value and accumulated depreciation on retirement of PPE and reclassification from one category of asset to another.
(2) Includes PPE secured against the Group's Borrowings outstanding of $44m and $50m as at 31 March 2023 and 31 March 2022 respectively.
(3) The carrying value of capital work-in-progress as of 31 March 2023 and 2022 mainly pertains to plant and equipment.
10. Goodwill
The following table presents the reconciliation of changes in the carrying value of Goodwill for the year
ended 31 March 2023 and 31 March 2022:
Goodwill
---------
Balance as of 1 April 2021 3,835
Foreign currency translation impact (8)
---------
Balance as of 31 March 2022 3,827
Foreign currency translation impact (311)
---------
Balance as of 31 March 2023 3,516
---------
11. Impairment review
As disclosed in note 5, during the year, the Group re-assessed its operating segments which resulted in Mobile Money Services becoming a new operating segment of the Group. In line with this change, for the purposes of impairment testing, Mobile Money Services was identified as an additional new group of CGUs. The new group of CGUs for impairment testing purposes are Nigeria Mobile Services, East Africa Mobile Services, Francophone Africa Mobile Services and Mobile Money Services (previously Nigeria, East Africa and Francophone). Goodwill was reallocated to the four group of CGUs based on the relative values of each group of CGUs, which resulted in goodwill being reallocated from Nigeria Mobile Services, East Africa Mobile Services and Francophone Africa Mobile Services to the Mobile Money group of CGUs. Consequently as at 01 April 2022, goodwill of $1,295m was reallocated to the new group of CGUs i.e., Mobile Money Services.
The carrying amount of goodwill is attributed to the following groups of CGUs:
As of
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Nigeria Mobile Services 900 1,275
East Africa Mobile Services 927 1,835
Francophone Africa Mobile Services 503 717
Mobile Money Services 1,186 -
3,516 3,827
============== ==============
The Group tests goodwill for impairment annually on 31 December. The carrying value of Goodwill as of 31 December 2022 was $901m, $951m, $497m and $1,200m for Nigeria Mobile Services, East Africa Mobile Services and Francophone Africa Mobile Services and Mobile Money Services, respectively. The recoverable amounts of the above group of CGUs are based on value-in-use, which are determined based on ten-year business plans that have been approved by the Board.
Whilst the Board performed a long-term viability assessment over a three-year period, for the purposes of assessing liquidity the Group has adopted a ten-year plan for the purpose of impairment testing due to the following reasons:
-- The Group operates in emerging markets where the telecommunications market is underpenetrated when compared to developed markets. In these emerging markets, short-term plans (for example, five years) are not indicative of the long-term future prospects and performance of the Group.
-- The life of the Group's regulatory telecom licences and network assets are at an average of ten years, the spectrum renewals happen for a period of ten years or more and in general the replacement of technology happens after a similar duration, and
-- The potential opportunities of the emerging African telecom sector, which is mostly a two-three player market with lower smartphone penetration.
Accordingly, the Board approved that this planning horizon reflects the assumptions for medium to long-term market developments, appropriately covers market dynamics of emerging markets and better reflects the expected performance in the markets in which the Group operates.
While using the ten-year plan, the Group also considers external market data to support the assumptions used in such plans, which is generally available only for the first five years. Considering the degree of availability of external market data beyond year five, the Group has performed sensitivity analysis to assess the impact on impairment of using a five-year plan. The results of this sensitivity analysis demonstrate that the initial five-year plan with appropriate changes including long-term growth rates applied at the end of this period does not result in any impairment and does not impact the headroom by more than 6% in any of the group of CGUs as compared to the headroom using the ten-year plan. Further, the Group is confident that projections for years six to ten are reliable and can demonstrate its ability, based on past experience to forecast cash flows accurately over a longer period. Accordingly, the Board has approved and the Group continues to follow a consistent policy of using an initial forecast period of ten years for the purpose of impairment testing.
In assessing the Group's prospects, the directors considered 5G cellular network potential in the markets in which the Group operates The Group's first endeavour is to secure spectrum for 5G launch and roll out 5G network in key markets. During the financial year, the Group secured 5G spectrum in Nigeria, Kenya, Zambia and Tanzania and will selectively launch 5G services in these markets. Given the relatively low 4G customer penetration in the countries where it operates, the Group will continue to focus on its strategy to expand its data services and increase data customer penetration by leveraging and expanding its leading 4G network.
The nominal cash flows used in the impairment tests reflect the Group's current assessment of the impact of climate change and associated commitments the Group has made. Based on the analysis conducted so far, the Group is satisfied that the impact of climate change does not lead to an impairment as at 31 December 2022 and is adequately covered as part of the sensitivities disclosed below.
The nominal cash flows beyond the planning period are extrapolated using appropriate long term terminal growth rates. The long term terminal growth rates used do not exceed the long term average growth rates of the respective industry and country in which the entity operates and are consistent with internal/external sources of information.
The inputs used in performing the impairment assessment at 31 December 2022 were as follows:
Assumptions Nigeria East Africa Francophone Mobile Money
Mobile Services Mobile Africa Mobile Services
Services Services
----------------------- ----------------- ------------ --------------- -------------
Pre-tax Discount Rate 33.38% 23.01% 21.07% 26.10%
Capital expenditure
(as % of Revenue) 6% - 23% 8% - 20% 9% -26% 1%-5%
Long term growth rate 7.64% 7.30% 7.35% 7.47%
At 31 December 2022, the impairment testing did not result in any impairment in the carrying amount of goodwill in any group of CGUs.
The key assumptions in performing the impairment assessment were as follows:
Assumptions Basis of assumptions
--------------------- ----------------------------------------------------------------------------------------------
Discount rate Nominal discount rate reflects the market assessment of the risks specific to the group of
CGUs and estimated based on the weighted average cost of capital for respective CGUs.
===================== ==============================================================================================
Capital expenditures The cash flow forecasts of capital expenditure are based on experience after considering the
capital expenditure required to meet coverage and capacity requirements relating to voice,
data and mobile money services.
===================== ==============================================================================================
Growth rates The growth rates into perpetuity used are in line with the nominal long-term average growth
rates of the respective industry and country in which the entity operates and are consistent
with the internal / external sources of information.
===================== ==============================================================================================
At 31 December 2022, the impairment testing did not result in any impairment in the carrying amount of goodwill in any group of CGUs. The results of the impairment tests using these rates show that the recoverable amount exceeds the carrying amount by $1,342m for Nigeria Mobile Services (54%), $1,593m for East Africa Mobile Services (66%), $1,512m for Francophone Africa Mobile Services (105%) and $2,688m for Mobile Money Services (198%). The group therefore concluded that no impairment was required to the Goodwill held against each groups of CGUs.
Sensitivity in discount rate and capital expenditure
Management believes that no reasonably possible change in any of the key assumptions would cause the difference between the carrying value and recoverable amount for any cash generating unit to be materially different from the recoverable value in the base case. The table below sets out the breakeven pre-tax discount rate for each group of CGUs, which will result in the recoverable amount being equal with the carrying amount for each group of CGUs:
East Africa Francophone
Nigeria Mobile Mobile Africa Mobile Mobile Money
Services Services Services Services
---------------------- -------------- ----------- -------------- ------------
Pre tax Discount Rate 46.89% 32.34% 33.37% 55.00%
The table below presents the increase in isolation in absolute capital expenditure as a percentage of revenue (across all years of the impairment review) which will result in equating the recoverable amount with the carrying amount for each group of CGUs:
Assumptions Nigeria Mobile East Africa Mobile Francophone Africa Mobile Money Services
Services Services Mobile Services
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Capital expenditure
(as a % of revenue) 6.21% 8.15% 8.89% 20.24%
No reasonably possible change in the terminal growth rate would cause the carrying amount to exceed the recoverable amount.
12. Cash and bank balances
Cash and cash equivalents As of
--------------------
31 March 31 March
2023 2022
--------- ---------
Balances with banks
- On current accounts 248 267
- Bank deposits with original maturity
of three months or less 272 281
Cheques on hand 1 -
Balance held in wallets 64 89
Cash on hand 1 1
--------- ---------
586 638
--------- ---------
Other bank balances
As of
------------------------------
31 March 2023 31 March 2022
-------------- --------------
-Term deposits with banks with original maturity of 117 220
more than three months but less than 12 months
-Margin money deposits (1) 14 158
-Unpaid dividend 0 0
131 378
============== ==============
(1) Margin money deposits represent amount given as collateral for legal cases and/or bank guarantees for disputed matters and deposit against derivative contracts. As at 31 March 2022 these also included deposits given against borrowings in one of the Group's subsidiaries.
For the purpose of the statement of cash flows, cash and cash equivalents are as follows:
As of
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Cash and cash equivalents as per statement of financial position 586 638
Balance held under mobile money trust 616 513
Bank overdraft (361) (304)
841 847
============== ==============
13. Borrowings
Non-current
As of
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Secured
Term loans 43 50
Less: Current portion (A) (8) (50)
-------------- --------------
35 -
Unsecured
Term loans(2) 964 655
Non- convertible bonds(1)(2) 554 1,015
-------------- --------------
1,518 1,670
Less: Current portion (B) (320) (184)
-------------- --------------
1,198 1,486
1,233 1,486
-------------- --------------
C urrent
As of
31 March 2023 31 March 2022
-------------- --------------
Secured
Term loans 1 -
-------------- --------------
1 -
Unsecured
Term loans(2) 255 248
Bank overdraft 361 304
-------------- --------------
616 552
Current maturities of long-term borrowings (A+B) 328 234
-------------- --------------
945 786
-------------- --------------
( 1) Includes impact of fair value hedges
(2) Includes debt origination costs
14. Share capital
As of
-------------------------------------------------
31 March 2023 31 March 2022
-------------- ---------------------------------
Authorised shares
3,758,151,504 Ordinary shares of $0.50 each
(March 2022: 3,758,151,504) 1,879 1,879
3,081,744,577 Deferred shares of $0.50 each
(March 2022:3,081,744,577) 1,541 1,541
3,420 3,420
============== =================================
Issued, Subscribed and fully paid-up shares
3,758,151,504 Ordinary shares of $0.50 each (March 2022:
3,758,151,504) 1,879 1,879
3,081,744,577 Deferred shares of $0.50 each
(March 2022: 3,081,744,577) 1,541 1,541
3,420 3,420
============== =================================
Terms/rights attached to equity shares
The company has following two classes of ordinary shares:
-- Ordinary shares having par value of $0.50 per share. Each holder of equity shares is entitled to cast one vote per share and carry a right to dividends.
-- Deferred shares of $0.50 each. These deferred shares are not listed and are intended to be cancelled in due course. No share certificates are to be issued in respect of the deferred shares. These are not freely transferable and would not affect the net assets of the company. The deferred shareholders shall have no right to receive any dividend or other distribution or return whether of capital or income. On a return of capital in a liquidation, the deferred shareholders shall have the right to receive the nominal amount of each deferred share held, but only after the holder of each Other share (i.e. shares other than the deferred shares) in the capital of the company shall have received the amount paid up on each such Other share held and the payment in cash or in specie of GBP100,000 (or its equivalent in any other currency) on each such Other shares held. The company shall have an irrevocable authority from each holder of the deferred shares at any time to purchase all or any of the deferred shares without obtaining the consent of the deferred shareholders in consideration of the payment of an amount not exceeding one US cent in respect of all of the deferred shares then being purchased.
15. Contingent liabilities and commitments
Contingent liabilities As of
------------------------------
31 March 2023 31 March 2022
-------------- --------------
(a) Taxes, Duties and Other demands (under adjudication / appeal / dispute)
-Income tax 16 18
- Value added tax (1) 20 30
-Customs duty & Excise duty 9 9
-Other miscellaneous demands 5 6
( b) Claims under legal and regulatory cases including
arbitration matters (2)(3) 82 82
-------------- --------------
132 145
============== ==============
There are uncertainties in the legal, regulatory and tax environments in the countries in which the Group operates and there is a risk of demands, which may be raised based on current or past business operations. Such demands have in the past been challenged and contested on merits with the relevant authorities and appropriate settlements agreed.
The reduction of $13m in contingent liabilities during the year ended 31 March 2023 is primarily due to a change in the likelihood of outflow of resources from possible to remote related to the 2016 VAT matter on the sale of towers.
The company and its subsidiaries are currently and may become, from time to time, involved in a number of legal proceedings, including inquiries from, or discussions with, governmental authorities that are incidental to their operations. As of 31 March 2023, the Group's key contingent liabilities include the following:
(1) Value Added Tax (VAT)
VAT Audit 2016
In July 2016, one of the subsidiaries in the mobile services business made a payment to another subsidiary engaged in passive infrastructure services for all invoices raised since 2013 for rendering tower services. The subsidiary claimed the input VAT charged on these invoices.
During the desktop VAT audit conducted by the tax authorities for 2016, the above-mentioned VAT credit was denied alleging that the VAT credit was time barred. Based on the VAT rules, the mobile services subsidiary is of the view that the time limitation for claiming input VAT starts from the year in which payment is made against the invoice. Since the payment was made in 2016, the time limit for claiming input credit (by 31 December of following year) had not lapsed.
In October 2016, the mobile services subsidiary received a notice of recovery and proceeded to make the 10% deposit in order to initiate litigation. The subsidiary submitted a comprehensive letter to the authorities in October 2017, for which a response is awaited from the tax authorities. An amount of $8m is included within contingent liabilities in respect of this matter. No provision has been created against this claim.
Claims under legal and regulatory cases including arbitration matters
(2) One of the subsidiaries of the Group is involved in a dispute with one of its vendors, with respect to invoices for services provided to a subsidiary under a service contract. The original order under the contract was issued by the subsidiary for a total amount of Central African franc (CFA) 473,800,000 (approximately $1m). In 2014, the vendor-initiated arbitration proceedings claiming a sum of approximately CFA 1.9 billion (approximately $3m). In mid-May 2019, the lower courts imposed a penalty of CFA 35 billion (approximately $59m), based on which certain banks of the subsidiary were summoned to release the funds. The subsidiary immediately lodged an appeal in the Supreme Court for a stay of execution which was granted. Subsequently, the vendor filed an appeal before the Common Court of Justice and Arbitration (CCJA). Quite unexpectedly, in April 2020, the CCJA lifted the Supreme Court stay of execution. In May 2021, the Commercial Division of the High Court maintained new seizures carried out by the Vendor. The subsidiary appealed and the Court of Appeal determination on the seizures is pending as of April 2022. In March 2022 the CCJA interpreted its judgment of March 2019 to indicate that the daily penalty could not be maintained after its ruling dated 18 November 2018.
Separately, in December 2020 the subsidiary initiated criminal proceedings against the vendor for fraud and deceitful conduct. In February 2021, the investigating judge issued an order to cease the investigation which was appealed by the Subsidiary. In March 2022, the Court Appeal quashed the investigative judge order and allowed the investigation into the Vendor to resume. Testimony in the criminal investigation case happened on 26 April 2022 in front of the criminal court of appeal where the honorable judge has further re-examined the facts from the representatives of the subsidiary against this case. The court will provide a further update on the upcoming proceedings in due course.
As per the law no civil action can be initiated against the subsidiary while criminal proceedings are ongoing. On 30 November 2022 subsidiary was notified that plaintiff has appealed in the court of cassation against the stay of execution dated 30 May 2022. Subsidiary has filed its response on 26 January 2023. The Group still awaits the Supreme court ruling on the merits of the case, and until that time has disclosed this matter as a Contingent Liability for $59m (included in the closing contingent liability). No provision has been made against this claim.
(3) One of the subsidiaries of the Group is involved in a dispute with one of its distributors, with respect to alleged unpaid commissions, bonuses and benefits, totaling approximately $11m, over a period of around 11 years of its business relationship with the subsidiary. In March 2012, the distributor filed a claim against the subsidiary in the High Court. On 4 October 2016, the High Court ruled against the subsidiary and ordered to pay the claimed amount of approximately $11m to the distributor. On 5 October 2016, the subsidiary filed an appeal in the Court of Appeal against the order of the High Court, which on 24 July 2020 was ruled against the subsidiary. On 7 August 2020, the subsidiary filed an appeal against the decision of the Court of Appeal, in the Supreme Court. Record of appeal has been transmitted to the Supreme Court and briefs of argument are currently being prepared.
Despite the strength of the subsidiary's line of defense, as both the High Court and Court of Appeal have ruled against the subsidiary, it is appropriate to disclose this matter as contingent liability for $11m, pending the decision of the Supreme Court. No provision has been made against this claim.
In addition to the individual matters disclosed above, in the ordinary course of business, the Group is a defendant or co-defendant in various litigations and claims which are immaterial individually.
Guarantees:
Guarantees outstanding as of 31 March 2023 and 31 March 2022 amounting to $9m and $8m respectively have been issued by banks and financial institutions on behalf of the Group. These guarantees include certain financial bank guarantees which have been given for sub-judice matters and the amounts with respect to these have been disclosed under capital commitments, contingencies and liabilities, as applicable, in compliance with the applicable accounting standards.
Commitments
Capital commitments
The Group has contractual commitments towards capital expenditure (net of related advances paid) of
$313m and $295m as of 31 March 2023 and 31 March 2022 respectively .
16. Related Party disclosure
a) List of related parties i) Parent company
Airtel Africa Mauritius Limited
ii) Intermediate parent entity
Network i2i Limited
Bharti Airtel Limited
Bharti Telecom Limited
iii) Ultimate controlling entity
Bharti Enterprises (Holding) Private Limited. It is held by private trusts of Bharti family, with Mr. Sunil Bharti Mittal's family trust effectively controlling the company.
iv) Associate:
Seychelles Cable Systems Company Limited
v) Joint Venture:
Mawezi RDC S.A.
vi) Other entities with whom transactions have taken place during the reporting period a. Fellow subsidiaries
Nxtra Data Limited
Bharti Airtel Services Limited
Bharti International (Singapore) Pte Ltd
Bharti Airtel (UK) Limited
Bharti Airtel (France) SAS
Bharti Airtel Lanka (Private) Limited
Bharti Hexacom Limited
b. Other related parties
Airtel Ghana Limited (till October 2021)
Singapore Telecommunication Limited
vii) Key Management Personnel ('KMP')
a. Executive director
Olusegun Ogunsanya (since October 2021)
Raghunath Venkateswarlu Mandava (till September 2021)
Jaideep Paul (since June 2021)
b. Non-Executive directors
Sunil Bharti Mittal
Awuneba Ajumogobia
Douglas Baillie
John Danilovich
Andrew Green
Akhil Gupta
Shravin Bharti Mittal
Annika Poutiainen
Ravi Rajagopal
Kelly Bayer Rosmarin
Tsega Gebreyes (since October 2021)
c. Others
Olusegun Ogunsanya (till September 2021)
Jaideep Paul (till May 2021)
Ian Ferrao
Michael Foley
Razvan Ungureanu
Luc Serviant
Daddy Mukadi
Neelesh Singh (till December 2022)
Ramakrishna Lella
Olivier Pognon (till October 2021)
Edgard Maidou (since October 2021)
Rogany Ramiah
Stephen Nthenge
Vimal Kumar Ambat (till October 2022)
Ashish Malhotra (till June 2022)
Vinny Puri
C Surendran (from August 2021 to December 2022)
Olubayo Adekanmbi (from December 2021 to November 2022)
Anthony Shiner (since May 2022)
Apoorva Mehrotra (since October2022)
In the ordinary course of business, there are certain transactions among the group entities and all these transactions are on arm's length basis. However, the intra-group transactions and balances, and the income and expenses arising from such transactions, are eliminated on consolidation. The transactions with remaining related parties for the years ended 31 March 2023 and 2022 respectively, are described below:
The summary of transactions with the above-mentioned parties is as follows:
For the year ended
31 March 2023 31 March 2022
--------
Relationship Parent Intermediate Fellow Joint Associates Other Parent Intermediate Fellow Joint Associates Other
company parent subsidiaries Venture related company parent subsidiaries Venture related
entity parties entity parties
-------- ------------- ------------- -------- ----------- -------- ------------- ------------- -------- ----------- --------
Sale /
rendering of
services - 13 77 - - - - 13 59 - - 0
Purchase /
receiving of
services - 16 59 - 0 - - 19 54 - 0 0
Rent and
other
charges - 1 - - - - - 1 - - - -
Guarantee and
collateral
fee paid - 3 - - - - - 6 - - - -
Purchase of
assets - 3 - - - - - - 2 - - -
Dividend Paid 109 - - - - - 95 - - - - -
Dividend - - - - 2 - - - - - - -
Received
-------------- -------- ------------- ------------- -------- ----------- -------- -------- ------------- ------------- -------- ----------- --------
The outstanding balance of the above-mentioned related parties are as follows:
Relationship Parent company Intermediate Fellow Joint venture Associate Other related
parent entity subsidiaries parties
---------------- -------------- -------------- -------------- ---------- --------------
As of 31 March 2023
Trade payables - 12 31 - 1 -
Trade receivables - 4 46 - - -
Corporate guarantee fee - 1 - - - -
payable
Guarantees and - 2,000 - - - -
collaterals taken
(including performance
guarantees)(1)
Reimbursement asset - 10 - - - -
As of 31 March 2022
Trade payables - 10 33 - 0 -
Trade receivables - 5 36 - - -
Corporate guarantee fee - 3 - - - -
payable
Guarantees and - 2,000 - - - -
collaterals taken
(including performance
guarantees)
Reimbursement asset - 25 - - - -
(1) This guarantee (200% of the bond amount) relates to the $1 Bn USD non-convertible bonds with original maturity of 2024. The Group has prepaid a portion of these bonds and the outstanding amount as on 31 March 2023 is $550m (31 March 2022: $1,000m). In accordance with the legal and regulatory requirements pertaining to these bonds, the guarantee amount can be reduced only once these are paid in full and thus the full guarantee amount (based on issued value of guarantee) is disclosed.
(c) Key management compensation
KMP are those persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or indirectly, including any director, whether executive or otherwise. For the group, these include executive committee members. Remuneration to key management personnel were as follows:
For the year ended
------------------------------------
31 March 2023 31 March 2022
----------------- -----------------
Short-term employee benefits 10 10
Performance linked incentive 4 3
Share-based payment 1 2
Other long-term benefits 2 2
Other benefits 1 1
18 18
================= =================
17. Fair Value of financial assets and liabilities
The category wise details as to the carrying value, fair value and the level of fair value measurement hierarchy of the group's financial instruments are as follows:
Carrying value as of Fair value as of
------------------------------ ------------------------------
31 March 2023 31 March 2022 31 March 2023 31 March 2022
-------------- -------------- -------------- --------------
Financial assets
FVTPL
Derivatives
- Forward and option
contracts Level 2 4 2 4 2
- Currency swaps and
interest rate swaps Level 2 9 3 9 3
- Cross currency swaps Level 3 - 1 - 1
Other bank balances Level 2 4 16 4 16
Investments Level 2 0 0 0 0
Amortised cost
Trade receivables 145 123 145 123
Cash and cash equivalents 586 638 586 638
Other bank balances 127 362 127 362
Balance held under mobile money trust 616 513 616 513
Other financial assets 176 131 176 131
1,667 1,789 1,667 1,789
============== ============== ============== ==============
Financial liabilities
FVTPL
Derivatives
- Forward and option
contracts Level 2 5 2 5 2
- Currency swaps and
interest rate swaps Level 2 0 0 0 0
- Cross currency swaps Level 3 43 7 43 7
- Embedded derivatives Level 2 0 1 0 1
Amortised cost
Long term borrowings - fixed rate Level 1 554 1,015 540 1,016
Long term borrowings - fixed rate Level 2 227 267 210 264
Long term borrowings - floating rate 452 204 452 204
Short term borrowings 945 786 945 786
Put option liability Level 3 569 579 569 579
Trade payables 460 404 460
404
Mobile money wallet balance 582 496 582 496
Other financial liabilities 680 464 680 464
4,517 4,225 4,486 4,223
============== ============== ============== ==============
The following methods/assumptions were used to estimate the fair values:
-- The carrying value of bank deposits, trade receivables, trade payables, short-term borrowings, other current financial assets and liabilities approximate their fair value mainly due to the short-term maturities of these instruments.
-- Fair value of quoted financial instruments is based on quoted market price at the reporting date.
-- The fair value of non-current financial assets, long-term borrowings and other financial liabilities is estimated by discounting future cash flows using current rates applicable to instruments with similar terms, currency, credit risk and remaining maturities.
-- The fair values of derivatives are estimated by using pricing models, wherein the inputs to those models are based on readily observable market parameters. The valuation models used by the Group reflect the contractual terms of the derivatives (including the period to maturity), and market-based parameters such as interest rates, foreign exchange rates, volatility etc. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement and inputs thereto are readily observable.
-- The fair value of the put option liability to buy back the stake held by non-controlling interest in AMC BV is measured at the present value of the redemption amount (i.e. expected cash outflows). Since, the liability will be based on fair value of the equity shares of AMC BV (subject to a cap) at the end of 48 months, the expected cash flows are estimated by determining the projected equity valuation of the AMC BV at the end of 48 months and applying a cap thereon.
During the year ended 31 March 2023 and year ended 31 March 2022 there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into or out of Level 3 fair value measurements.
The following table describes the key inputs used in the valuation (basis discounted cash flow technique) of the Level 2 financial assets/liabilities as of 31 March 2023 and 31 March 2022:
Financial assets / liabilities Inputs used
-------------------------------------------------- ------------------------------------------------
- Currency swaps, forward and option contracts and Forward foreign currency exchange rates, Interest rate
other bank balances
- Interest rate swaps Prevailing / forward interest rates in market, Interest
rate
- Embedded derivatives Prevailing interest rates in market, inflation rates
- Other financial assets / fixed rate borrowing / other Prevailing interest rates in market, Future payouts,
financial Interest rates
liabilities
18. Events after the balance sheet date
No material subsequent events or transactions have occurred since the date of statement of financial position except as disclosed below:
-- The Board recommended a final dividend of 3.27 cents per share on 10 May 2023.
Appendix
Additional information pertaining to three months ended March 31, 2023
Consolidated Statement of Comprehensive Income (unaudited)
(All amounts are in US$ Millions; unless stated otherwise)
For three months ended
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Income
Revenue 1,341 1,222
Other income 4 2
1,345 1,224
Expenses
Network operating expenses 268 213
Access charges 102 104
License fee and spectrum usage charges 62 78
Employee benefits expense 76 77
Sales and marketing expenses 64 60
Reversal of impairment loss on financial assets (4) (1)
Other expenses 118 115
Depreciation and amortisation 220 188
906 834
Operating profit 439 390
Finance costs 210 136
Finance income (6) (5)
Other non-operating income - (101)
Share of profit for associate and joint venture accounted for using equity
method 2 0
Profit before tax 233 360
Tax expense 6 120
Profit for the period 227 240
Profit before tax (as presented above) 233 360
Add: Exceptional items (net) - (51)
Underlying profit before tax 233 309
------------------------------------------------------------------------------------ -------------- --------------
Profit after tax (as presented above) 227 240
Add: Exceptional items (net) (99) (52)
Underlying profit after tax 128 188
------------------------------------------------------------------------------------ -------------- --------------
Other comprehensive income ('OCI')
Items to be reclassified subsequently to profit or loss:
Net loss due to foreign currency translation differences (41) (39)
Tax (expense)/credit on above (1) 1
Share of OCI of associate and joint venture accounted for using equity 0 -
method
(42) (38)
-------------- --------------
Items not to be reclassified subsequently to profit or loss:
Re-measurement gain on defined benefit plans 1 0
Tax expense on above (0) (0)
1 0
-------------- --------------
Other comprehensive loss for the period (41) (38)
-------------- --------------
For three months ended
------------------------------
31 March 2023 31 March 2022
-------------- --------------
Total comprehensive income for the period 186 202
-------------- --------------
Profit for the period attributable to: 227 240
Owners of the Company 195 190
Non-controlling interests 32 50
Other comprehensive loss for the period attributable to: (41) (38)
Owners of the Company (41) (38)
Non-controlling interests 0 (0)
Total comprehensive income for the period attributable to: 186 202
Owners of the Company 154 152
Non-controlling interests 32 50
Alternative performance measures (APMs)
Introduction
In the reporting of financial information, the directors have adopted various APMs. These measures are not defined by International Financial Reporting Standards (IFRS) and therefore may not be directly comparable with other companies APMs, including those in the Group's industry.
APMs should be considered in addition to, and are not intended to be a substitute for, or superior to, IFRS measurements.
Purpose
The directors believe that these APMs assist in providing additional useful information on the underlying trends, performance and position of the Group.
APMs are also used to enhance the comparability of information between reporting periods and geographical units (such as like-for-like sales), by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid users in understanding the Group's performance. Consequently, APMs are used by the directors and management for performance analysis, planning, reporting and incentive-setting purposes.
The directors believe the following metrics to be the APMs used by the Group to help evaluate growth trends, establish budgets and assess operational performance and efficiencies. These measures provide an enhanced understanding of the Group's results and related trends, therefore increasing transparency and clarity into the core results of the business.
The following metrics are useful in evaluating the Group's operating performance:
APM Closest Adjustments to reconcile to IFRS measure Table Definition and purpose
equivalent reference(1)
IFRS measure
--------------------------
Underlying Operating Table A The Group defines
EBITDA and profit * Depreciation and amortisation underlying EBITDA as
margin operating profit/(loss)
for the period before
* Exceptional items depreciation
and amortisation and
adjusted for exceptional
items.
The Group defines
underlying EBITDA margin
as underlying EBITDA
divided by revenue.
Underlying EBITDA and
margin are measures used
by the directors to
assess the trading
performance
of the business and are
therefore the measure of
segment profit that the
Group presents under
IFRS. Underlying EBITDA
and margin are also
presented on a
consolidated basis
because the
directors believe it is
important to consider
profitability on a basis
consistent with that
of the Group's operating
segments. When presented
on a consolidated basis,
underlying EBITDA
and margin are APMs.
Depreciation and
amortisation is a
non-cash item which
fluctuates depending on
the timing
of capital investment and
useful economic life.
Directors believe that a
measure which removes
this volatility improves
comparability of the
Group's results period on
period and hence is
adjusted to arrive at
underlying EBITDA and
margin.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
underlying EBITDA and
margin.
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
Underlying Profit / Table B The Group defines
profit / (loss) before * Exceptional items underlying profit/(loss)
(loss) before tax before tax as
tax profit/(loss) before tax
adjusted
for exceptional items.
The directors view
underlying profit/(loss)
before tax to be a
meaningful measure to
analyse
the Group's
profitability.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
underlying profit/(loss)
before tax.
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
Effective tax Reported tax Table C The Group defines
rate rate * Exceptional items effective tax rate as
reported tax rate
(reported tax charge
* Foreign exchange rate movements divided by
reported profit before
tax) adjusted for
* One-off tax impact of prior period, tax litigation exceptional items,
settlement and impact of tax on permanent differences foreign exchange rate
movements
and one-off tax items of
prior period adjustment,
tax settlements and
impact of permanent
differences on tax.
This provides an
indication of the current
on-going tax rate across
the Group.
Exceptional tax items or
any tax arising on
exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison
of the Group's
performance on a
period-to-period basis
and could distort the
understanding
of our performance for
the period and the
comparability between
periods and hence are
adjusted
to arrive at effective
tax rate.
Foreign exchange rate
movements are specific
items that are non-tax
deductible in a few of
the entities which are
loss making and/or where
DTA is not yet triggered
and hence are considered
to hinder comparison of
the Group's effective tax
rate on a
period-to-period basis
and therefore
excluded to arrive at
effective tax rate.
One-off tax impact on
account of prior period
adjustment, any tax
litigation settlement and
tax impact on permanent
differences are
additional specific items
that because of their
size
and frequency in the
results, are considered
to hinder comparison of
the Group's effective
tax rate on a
period-to-period basis.
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
Underlying Profit/(loss) Table D The Group defines
profit/(loss) for the * Exceptional items underlying profit/(loss)
after tax period after tax as
profit/(loss) for the
period adjusted
for exceptional items.
The directors view
underlying profit/(loss)
after tax to be a
meaningful measure to
analyse
the Group's
profitability.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
underlying profit/(loss)
after tax.
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
Earnings per EPS Table E The Group defines
share before * Exceptional items earnings per share before
exceptional exceptional items as
items profit/(loss) for the
period
before exceptional items
attributable to owners of
the company divided by
the weighted average
number of ordinary shares
in issue during the
financial period.
This measure reflects the
earnings per share before
exceptional items for
each share unit
of the company.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
earnings for the purpose
of earnings per
share before exceptional
items.
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
Operating Cash Table F The Group defines
free cash generated * Income tax paid operating free cash flow
flow from as net cash generated
operating from operating activities
activities * Changes in working capital before income tax paid,
changes in working
capital, other non-cash
* Other non-cash items items, non-operating
income,
exceptional items, and
* Non-operating income after capital
expenditures. The Group
views operating free cash
* Exceptional items flow
as a key liquidity
measure, as it indicates
* Capital expenditures the cash available to pay
dividends, repay debt
or make further
investments in the Group.
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
Net debt and Borrowings Table G The Group defines net
leverage * Lease liabilities debt as borrowings
ratio including lease
liabilities less cash and
* Cash and cash equivalent cash equivalents,
term deposits with banks,
deposits given against
* Term deposits with banks borrowings/non-derivative
financial instruments,
processing costs related
* Deposits given against borrowings/ non-derivative to borrowings and fair
financial instruments value hedge adjustments.
The Group defines
leverage ratio as net
* Fair value hedges debt divided by
underlying EBITDA for the
preceding
12 months.
The directors view net
debt and the leverage
ratio to be meaningful
measures to monitor the
Group's ability to cover
its debt through its
earnings.
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
Return on No direct Table H The Group defines return
capital equivalent * Exceptional items to arrive at underlying EBIT on capital employed
employed ('ROCE') as underlying
EBIT divided by average
capital employed.
The directors view ROCE
as a financial ratio that
measures the Group's
profitability and the
efficiency with which its
capital is being
utilised.
The Group defines
underlying EBIT as
operating profit/(loss)
for the period adjusted
for exceptional
items.
Exceptional items are
additional specific items
that because of their
size, nature or incidence
in the results, are
considered to hinder
comparison of the Group's
performance on a
period-to-period
basis and could distort
the understanding of our
performance for the
period and the
comparability
between periods and hence
are adjusted to arrive at
underlying EBIT.
Capital employed is
defined as sum of equity
attributable to owners of
the company (grossed
up for put option
provided to minority
shareholders to provide
them liquidity as part of
the
sale agreements executed
with them during year
ended 31 March 2022),
non-controlling interests
and net debt. Average
capital employed is
average of capital
employed at the closing
and beginning
of the relevant period.
For quarterly
computations, ROCE is
calculated by dividing
underlying EBIT for the
preceding
12 months by the average
capital employed (being
the average of the
capital employed averages
for the preceding four
quarters).
-------------- -------------- ------------------------------------------------------------ ------------ --------------------------
(1 Refer "Reconciliation between GAAP and Alternative Performance Measures" for respective table.)
Some of the Group's IFRS measures and APMs are translated at constant currency exchange rates to measure the organic performance of the Group. In determining the percentage change in constant currency terms, both current and previous financial reporting period's results have been converted using exchange rates prevailing as on 31 March 2022. Reported currency percentage change is derived on the basis of the average actual periodic exchange rates for that financial period. Variances between constant currency and reported currency percentages are due to exchange rate movements between the previous financial reporting period and the current period. The constant currency numbers only reflect the retranslation of reported numbers into exchange rates as at 31 March 2022 and are not intended to represent the wider impact that currency changes has on the business.
Changes to APMs
-- Underlying revenue: The underlying revenue has not been defined as an APM due to the absence of any exceptional items during the period.
-- Return on capital employed (ROCE): The Group has revised the computation of ROCE by grossing up the 'equity attributable to owners of the Company' for put option provided to minority shareholders based on the fact that this liability was created through reserves and the Group believes that it should not impact the computation of return on capital employed. The previous period ROCE has also been restated for this change.
Reconciliation between GAAP and Alternative Performance Measures
Table A: Underlying EBITDA and margin
Description Unit Year ended
of measure
-------------------------------- ------------- ------------------------
March 2023 March 2022
-------------------------------- ------------- ----------- -----------
Operating profit $m 1,757 1,535
Add:
Depreciation and amortisation $m 818 744
Exceptional items $m - 32
Underlying EBITDA $m 2,575 2,311
Revenue $m 5,255 4,714
-------------------------------- ------------- ----------- -----------
Underlying EBITDA margin
(%) % 49.0% 49.0%
-------------------------------- ------------- ----------- -----------
Table B: Underlying profit / (loss) before tax
Description Unit Year ended
of measure
---------------------------- ------------- ------------------------
March 2023 March 2022
---------------------------- ------------- ----------- -----------
Profit / (loss) before tax $m 1,034 1,224
Exceptional items (net) $m - (60)
Underlying profit / (loss)
before tax $m 1,034 1,164
-----------
Table C: Effective tax rate
Description Unit Year ended
of measure
------------------------------- -------------
March 2023 March 2022
------------------------------- ------------- --------------------------------- ---------------------------------
Profit Income Tax Profit Income Tax
before tax expense rate before tax expense rate
taxation % taxation %
------------------------------- ------------- ---------- ------------- ------ ---------- ------------- ------
Reported effective
tax rate $m 1,034 284 27.4% 1,224 469 38.3%
Adjusted for:
Exceptional items (provided
below) $m - 161 (60) 2
Foreign exchange rate
movement for loss making
entities and/or non-DTA
operating companies
& holding companies $m 106 - 50 -
One-off adjustment and
tax on permanent differences $m 4 (1) (12) (2)
Effective tax rate $m 1,144 444 38.8% 1,202 469 39.0%
------
Exceptional items
1. Deferred tax asset $m - 161 - -
recognition
2. Gain on sale of tower
assets $m - - (111) 0
3. Bonds prepayment $m - - 19 -
cost
4. Provision for settlement
of contractual dispute $m - - 12 2
5. Spectrum fee agreement $m - - 20 -
cost
Total $m - 161 (60) 2
------
Table D: Underlying profit / (loss) after tax
Description Unit Year ended
of measure
---------------------------------- ------------- ------------------------
March 2023 March 2022
---------------------------------- ------------- ----------- -----------
Profit / (loss) after tax $m 750 755
Exceptional items $m (161) (62)
Underlying profit / (loss) after
tax $m 589 693
-----------
Table E: Earnings per share before exceptional items
Description Unit Year ended
of
measure
------------------------------------------ ---------- ------------------------
March 2023 March 2022
------------------------------------------ ---------- ----------- -----------
Profit for the period attributable
to owners of the company $m 663 631
Operating and Non-operating exceptional
items $m - (60)
Tax exceptional items $m (161) (2)
Non-controlling interest exceptional
items $m 10 33
------------------------------------------ ---------- ----------- -----------
Profit for the period attributable
to owners of the company-
before exceptional items $m 512 602
Weighted average number of ordinary
shares in issue during the financial
period. Million 3,752 3,754
Earnings per share before exceptional
items Cents 13.6 16.0
-----------
Table F: Operating free cash flow
Description Unit Year ended
of measure
----------------------------------------- ------------- ------------------------
March 2023 March 2022
----------------------------------------- ------------- ----------- -----------
Net cash generated from operating
activities $m 2,208 2,011
Add: Income tax paid $m 397 293
Net cash generation from operation
before tax $m 2,605 2,304
Less: Changes in working capital
Increase in trade receivables $m 45 18
Increase/(Decrease) in inventories $m 13 (4)
Increase in trade payables $m (9) (34)
Increase in mobile money wallet
balance $m (120) (64)
Decrease/(Increase) in provisions $m 32 (14)
Increase in deferred revenue $m (37) (27)
Increase in other financial
and non-financial liabilities $m (92) (50)
Increase in other financial
and non-financial assets $m 140 144
Operating cash flow before changes
in working capital $m 2,577 2,273
Other non-cash adjustments $m (2) 6
Operating exceptional items $m - 32
Underlying EBITDA $m 2,575 2,311
Less: Capital expenditure $m (748) (656)
Operating free cash flow $m 1,827 1,655
-----------
Table G: Net debt and leverage
Description Unit As at As at
of measure
------------------------------------------- -------------
March 2023 March 2022
------------------------------------------- ------------- ----------- -----------
Long term borrowing, net of current
portion $m 1,233 1,486
Short-term borrowings and current
portion of long-term borrowing $m 945 786
Add: Processing costs related
to borrowings $m 7 5
Add/(less): Fair value hedge
adjustment $m (5) (16)
Less: Cash and cash equivalents $m (586) (638)
Less: Term deposits with banks $m (117) (220)
Less: Deposits given against
borrowings/ non-derivative financial
instruments $m - (122)
Add: Lease liabilities $m 2,047 1,660
Net debt $m 3,524 2,941
-----------
Underlying EBITDA $m 2,575 2,311
Leverage times 1.4x 1.3x
------------------------------------------- ------------- ----------- -----------
Table H: Return on capital employed
Description Unit Year ended
of
measure
March 2023 March 2022
Operating profit $m 1,757 1,535
Add:
Operating exceptional items $m - 32
Underlying EBIT $m 1,757 1,567
Equity attributable to owners of
the Company $m 3,635 3,502
Add: Put option given to minority
shareholders (1) $m 569 579
Gross equity attributable to owners
of the Company (1) $m 4,204 4,081
Non-controlling interests (NCI) $m 173 147
Net debt (refer Table G) $m 3,524 2,941
Capital employed $m 7,901 7,169
Average capital employed (2) $m 7,536 7,026
Return on capital employed % 23.3% 22.3%
(1) Refer changes to APMs in Alternative performance measure (APMs) section.
(2) Average capital employed is calculated as average of capital employed at closing and opening of relevant period. Capital employed at the beginning of year ended 31 March 2023 and 2022 is $ 7,169m and $ 6,883m respectively.
Glossary
Technical and Industry Terms
4G data customer A customer having a 4G handset and who has used at least
1 MB on any of the Group's GPRS,
3G & 4G network in the last 30 days.
Airtel Money (mobile money) Airtel Money is the brand name for Airtel Africa's mobile
money products and services. The
term is used interchangeably with 'mobile money' when
referring to our mobile money business,
finance, operations and activities.
Airtel Money ARPU Mobile money average revenue per user per month. This is
derived by dividing total mobile
money revenue during the relevant period by the average
number of active mobile money customers
and dividing the result by the number of months in the
relevant period.
Airtel Money customer base Total number of active subscribers who have enacted any
mobile money usage event in last 30
days.
Airtel Money customer penetration The proportion of total Airtel Africa active mobile
customers who use mobile money services.
Calculated by dividing the mobile money customer base by
the Group's total customer base.
Airtel Money transaction value Any financial transaction performed on Airtel Africa's
mobile money platform.
Airtel Money transaction value per customer per month Calculated by dividing the total mobile money transaction
value on the Group's mobile money
platform during the relevant period by the average number
of active mobile money customers
and dividing the result by the number of months in the
relevant period.
Airtime credit service A value-added service where the customer can take an
airtime credit and continue to use our
voice and data services, with the credit recovered
through subsequent customer recharge. This
is classified as a Mobile Services product (not a Mobile
Money product).
ARPU Average revenue per user per month. This is derived by
dividing total revenue during the relevant
period by the average number of customers during the
period and dividing the result by the
number of months in the relevant period.
Average customers The average number of active customers for a period.
Derived from the monthly averages during
the relevant period. Monthly averages are calculated
using the number of active customers
at the beginning and the end of each month.
Capital expenditure An alternative performance measure (non-GAAP). Defined as
investment in gross fixed assets
(both tangible and intangible but excluding spectrum and
licences) plus capital work in progress
(CWIP), excluding provisions on CWIP for the period.
Constant currency The Group has presented certain financial information
that is calculated by translating the
results for the current financial year and previous
financial years at a fixed 'constant currency'
exchange rate, which is done to measure the organic
performance of the Group. Growth rates
for reporting regions and service segments are in
constant currency as it better represents
the performance of the business. Constant currency growth
rates for prior periods are calculated
using closing exchange rates as at the end of prior
period.
Customer Defined as a unique active subscriber with a unique
mobile telephone number who has used any
of Airtel's services in the last 30 days.
Customer base The total number of active subscribers that have used any
of our services (voice calls, SMS,
data usage or mobile money transaction) in the last 30
days.
Data ARPU Data average revenue per user per month. Data ARPU is
derived by dividing total data revenue
during the relevant period by the average number of data
customers and dividing the result
by the number of months in the relevant period.
Data customer base The total number of subscribers who have consumed at
least 1 MB on the Group's GPRS, 3G or
4G network in the last 30 days.
Data customer penetration The proportion of customers using data services.
Calculated by dividing the data customer
base by the total customer base.
Data usage per customer per month Calculated by dividing the total MBs consumed on the
Group's network during the relevant period
by the average data customer base over the same period
and dividing the result by the number
of months in the relevant period.
Digitalisation We use the term digitalisation in its broadest sense to
encompass both digitisation actions
and processes that convert analogue information into a
digital form and thereby bring customers
into the digital environment, and the broader
digitalisation processes of controlling, connecting
and planning processes digitally; the processes that
effect digital transformation of our
business, and of industry, economics and society as a
whole through bringing about new business
models, socio-economic structures and organisational
patterns.
Diluted earnings per share Diluted EPS is calculated by adjusting the profit for the
year attributable to the shareholders
and the weighted average number of shares considered for
deriving basic EPS, for the effects
of all the shares that could have been issued upon
conversion of all dilutive potential shares.
The dilutive potential shares are adjusted for the
proceeds receivable had the shares actually
been issued at fair value. Further, the dilutive
potential shares are deemed converted as
at beginning of the period, unless issued at a later date
during the period.
Earnings per share (EPS) EPS is calculated by dividing the profit for the period
attributable to the owners of the
company by the weighted average number of ordinary shares
outstanding during the period.
Foreign exchange rate movements for non-DTA operating Foreign exchange rate movements are specific items that
companies are non-tax deductible in a few of
and holding companies our operating entities, hence these hinder a
like-for-like comparison of the Group's effective
tax rate on a period-to-period basis and are therefore
excluded when calculating the effective
tax rate.
Indefeasible Rights of Use (IRU) A standard long-term leasehold contractual agreement that
confers upon the holder the exclusive
right to use a portion of the capacity of a fibre route
for a stated period.
Information and communication technologies (ICT) ICT refers to all communication technologies, including
the internet, wireless networks, cell
phones, computers, software, middleware,
videoconferencing, social networking, and other media
applications and services.
Interconnect user charges (IUC) Interconnect user charges are the charges paid to the
telecom operator on whose network a
call is terminated.
Lease liability Lease liability represents the present value of future
lease payment obligations.
Leverage An alternative performance measure (non-GAAP). Leverage
(or leverage ratio) is calculated
by dividing net debt at the end of the relevant period by
the EBITDA for the preceding 12
months.
Minutes of usage Minutes of usage refer to the duration in minutes for
which customers use the Group's network
for making and receiving voice calls. It includes all
incoming and outgoing call minutes,
including roaming calls.
Mobile services Mobile services are our core telecom services, mainly
voice and data services, but also including
revenue from tower operation services provided by the
Group and excluding mobile money services.
Net debt An alternative performance measure (non-GAAP). The Group
defines net debt as borrowings including
lease liabilities less cash and cash equivalents, term
deposits with banks, processing costs
related to borrowings and fair value hedge adjustments.
Net debt to EBITDA (LTM) An alternative performance measure (non-GAAP) Calculated
by dividing net debt as at the end
of the relevant period by EBITDA for the preceding 12
months (from the end of the relevant
period). This is also referred to as the leverage ratio.
Network towers or 'sites' Physical network infrastructure comprising a base
transmission system (BTS) which holds the
radio transceivers (TRXs) that define a cell and
coordinates the radio link protocols with
the mobile device. It includes all ground-based, roof top
and in-building solutions.
Operating company (OpCo) Operating company (or OpCo) is a defined corporate
business unit, providing telecoms services
and mobile money services in the Group's footprint.
Operating free cash flow An alternative performance measure (non-GAAP). Calculated
by subtracting capital expenditure
from EBITDA.
Operating leverage An alternative performance measure (non-GAAP). Operating
leverage is a measure of the operating
efficiency of the business. It is calculated by dividing
operating expenditure (excluding
regulatory charges) by total revenue.
Operating profit Operating profit is a GAAP measure of profitability.
Calculated as revenue less operating
expenditure (including depreciation and amortisation and
operating exceptional items).
Other revenue Other revenue includes revenues from messaging, value
added services (VAS), enterprise, site
sharing and handset sale revenue.
Reported currency Our reported currency is US dollars. Accordingly, actual
periodic exchange rates are used
to translate the local currency financial statements of
OpCos into US dollars. Under reported
currency the assets and liabilities are translated into
US dollars at the exchange rates prevailing
at the reporting date whereas the statements of profit
and loss are translated into US dollars
at monthly average exchange rates.
Smartphone A smartphone is defined as a mobile phone with an
interactive touch screen that allows the
user to access the internet and additional data
applications, providing additional functionality
to that of a basic feature phone which is used only for
making voice calls and sending and
receiving text messages.
Smartphone penetration Calculated by dividing the number of smartphone devices
in use by the total number of customers.
Total MBs on network Total MBs consumed (uploaded & downloaded) by customers
on the Group's GPRS, 3G and 4G network
during the relevant period.
Underlying EBIT Defined as operating profit/(loss) for the period
adjusted for exceptional items.
Underlying EBITDA An alternative performance measure (non-GAAP). Defined as
operating profit before depreciation,
amortisation and exceptional items.
Underlying EBITDA margin An alternative performance measure (non-GAAP). Calculated
by dividing EBITDA for the relevant
period by revenue for the relevant period.
Revenue An alternative performance measure (non-GAAP). Defined as
revenue before exceptional items.
Unstructured Supplementary Service Data Unstructured Supplementary Service Data (USSD), also
known as "quick codes" or "feature codes",
is a communications protocol for GSM mobile operators,
similar to SMS messaging. It has a
variety of uses such as WAP browsing, prepaid callback
services, mobile-money services, location-based
content services, menu-based information services, and
for configuring phones on the network.
Voice minutes of usage per customer per month Calculated by dividing the total number of voice minutes
of usage on the Group's network during
the relevant period by the average number of customers
and dividing the result by the number
of months in the relevant period.
Weighted average number of shares The weighted average number of shares is calculated by
multiplying the number of outstanding
shares by the portion of the reporting period those
shares covered, doing this for each portion
and then summing the total.
Abbreviations
2G Second-generation mobile technology
3G Third-generation mobile technology
4G Fourth-generation mobile technology
ARPU Average revenue per user
bn Billion
bps Basis points
CAGR Compound annual growth rate
Capex Capital expenditure
CSR Corporate social responsibility
DTA Deferred Tax Asset
EBIT Earnings before interest and tax
EBITDA Earnings before interest, tax, depreciation and
amortisation
EPS Earnings per share
FPPP Financial position and prospects procedures
GAAP Generally accepted accounting principles
GB Gigabyte
HoldCo Holding company
IAS International accounting standards
ICT Information and communication technologies
ICT (Hub) Information communication technology (Hub) IFRS
IFRS International financial reporting standards
IMF International monetary fund
IPO Initial public offering
KPIs Key performance indicators
KYC Know your customer
LTE Long-term evolution (4G technology)
LTM Last 12 months
m Million
MB Megabyte
MI Minority interest (non-controlling interest)
NGO Non-governmental organisation
OpCo Operating company
P2P Person to person
PAYG Pay-as-you-go
QoS Quality of service
RAN Radio access network
ROCE Return on capital employed
SIM Subscriber identification module
Single RAN Single radio access network
SMS Short messaging service
TB Terabyte
Telecoms Telecommunications
Unit of measure Unit of measure
USSD Unstructured supplementary service data
[1] National identification number (NIN)
[2] See alternative performance measures (APM) on page 51
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END
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(END) Dow Jones Newswires
May 11, 2023 02:00 ET (06:00 GMT)
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