Q3 2024 Airtel Africa PLC Earnings Call Transcript
Key Points
- Airtel Africa PLC (NSA:AIRTELAFRI) reported a strong operating performance with a 20% revenue growth in constant currency, leading to $3.86 billion in reported revenues over the 9-month period.
- The company achieved an industry-leading EBITDA margin of 49.4%, with EBITDA growth of 21.9% in constant currency terms.
- Airtel Africa PLC (NSA:AIRTELAFRI) saw significant growth in its mobile money business, with a 3% constant currency revenue growth in Q3 and a 35% increase in transaction value.
- The company has reduced its leverage ratio to 1.3x EBITDA from 1.5x, and net debt declined to under $3.3 billion from over $3.6 billion a year ago.
- The board has approved a share buyback scheme of up to $100 million, starting in early March 2024 over a 12-month period, reflecting confidence in the company's financial strength.
- Reported results were negatively impacted by currency devaluations in several markets, including a 22.5% devaluation in Nigeria and a 44% devaluation in Malawi, leading to a 1.4% decline in reported revenues over the 9-month period.
- The currency devaluations resulted in a significant increase in finance costs, impacting the company's EPS for the period.
- Despite strong operational performance, the company's EPS before exceptional items was down 35%, reflecting the impact of currency headwinds.
- The company faces ongoing challenges with high energy costs and FX pressures, which have affected its operating margins.
- Airtel Africa PLC (NSA:AIRTELAFRI) continues to deal with regulatory challenges in Nigeria, including the need for regulatory approval for price increases, which could impact future revenue growth.
Good day, ladies and gentlemen, and welcome to Airtel Africa's 9 months '24 Results. (Operator Instructions) Please note that this event is being recorded.
I will now hand the conference over to Segun Ogunsanya. Please go ahead, sir.
Thank you for joining us on today's call. And as always, joined by our CFO, Jaideep; and Deputy CFO and the Head of Investor Relations, Pier. We're going to be asking you a question very shortly. But first, I'd like to provide a brief overview of the performance over the last 9 months.
We have reported a strong operating performance in constant currency with revenue growth of 20%, leading to reported revenues of $3.86 billion over the 9 month period. In Q3, third quarter, we saw constant currency revenue growth accelerate from 19% in Q2 to 21% in Q3, reflecting continued success in our strategy across all of our 3 regions. This strong top line performance, combined with further cost efficiencies, have [drive]
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