AFRICA – Airtel Africa, of the leading multinational telecommunication companies on the continent, has recorded an impressive 13% jump in profits in its QI results for 2020 in spite of the raging COVID-19 pandemic.
According to a statement from Airtel Africa, the teleco recorded a profit of US$210 million in Q1 of its 2020 financial year which ended in June.
The profit according to Airtel Africa represented a 12.9% rise compared to the profits realized during the same period last year.
The telecommunications giant also reported that during the period under review, it customers’ base rose by 11.8% to 111.5 million in spite of the pandemic.
Airtel Africa’s total revenue increased by 6.9% to $851m, with constant currency revenue growth of 13.0%
The telco reported that constant currency revenue growth was recorded across all key business segments, with voice revenue up by 2.2%, data by 35.7%, and mobile money by 26.3%.
According to the financial report, Airtel Africa’s underlying EBITDA increased by 7.9% to $375m, with constant currency growth of 14.6% while the reported underlying EBITDA margin was 44.1%, up by 40 bps.
The company’s free cash flow increased to US$96m from the US$62m in the same period last year.
Raghunath Mandava, chief executive officer, Airtel Africa explained the company’s business was to survive the COVID-19 pandemic against all odds.
“During the last quarter, our business was impacted by the Covid-19 pandemic, as restrictions on movements of people and ways of socializing were introduced to contain the spread of infection,” Mandava noted.
He noted that during these unprecedented times, Airtel Africa has worked with governments, regulators, partners, and suppliers to keep customers and businesses connected as well as supporting the economies and communities.
Mandava further noted that they were “focused on expanding and maintaining our network to ensure it could cope with increasing demand.”
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