Airtel Africa Releases Results For Quarter Ended 30 June 2024 

Total customer base grew by 8.6% to 155.4 million. Data customer penetration continues to rise, driving a 13.4% increase in data customers to 64.4 million. Data usage per customer increased by 25.1% to 6.2 GBs, with smartphone penetration increasing 4.7% to reach 41.7%.
Mobile money subscriber growth of 14.9% reflects our continued investment into distribution to support increased financial inclusion across our markets. Transaction value increased by 28.7% in constant currency with annualised transaction value of $120bn in reported currency.
Data ARPU growth of 9.6% and mobile money ARPU growth of 8.8% in constant currency continued to support overall ARPU’s which increased 9.3% YoY.

Customer experience remains core to our strategy with sustained network investment driving increased capacity and coverage. Data capacity across our network has increased by 33% with the rollout of almost 3,000 sites and over 5,600 kms of fibre.

Launched a comprehensive cost efficiency programme to identify specific cost reduction initiatives across the Group. Steps taken include the optimisation of network utilisation and design, introducing energy saving initiatives to reduce network costs and the renegotiation of key contracts, whilst ensuring future growth ambitions remain protected. We anticipate the full benefit of this programme to accrue over the year ahead.

Financial performance

Revenue in constant currency grew by 19.0% in Q1’25, driven by 33.4% growth in Nigeria and 22.3% growth in East Africa, respectively. Reported currency revenues declined by 16.1% to $1,156m reflecting the impact of currency devaluation, particularly in Nigeria. Across the Group mobile services revenue grew by 17.4% and Mobile Money revenue grew by 28.4% in constant currency.

A substantial increase in fuel prices across our markets and the lower contribution of Nigeria to the Group after the naira devaluation contributed to a decline in EBITDA margins to 45.3% from 49.5% in Q1’24 and 46.5% in Q4’24. However, constant currency EBITDA increased 11.3% whilst reported currency EBITDA declined by 23.3% to $523m.
Profit after tax of $31m was impacted by $80m of exceptional derivative and foreign exchange losses (net of tax), arising from the further depreciation in the Nigerian naira during the quarter.

The translation impact of currency devaluation on reported currency results was the primary driver of EPS before exceptional items declining from 3.9 cents in the prior period to 2.3 cents. Basic EPS of 0.2 cents compares to negative (4.5 cents) in the prior period, predominantly reflecting the $471m of exceptional derivative and foreign exchange losses in the prior period, compared to $122m in the current period.

Capital allocation

Capex at $147m was 4.9% higher compared to prior period. Capex guidance for the full year remains between $725m and $750m as we continue to invest for future growth.
In line with our plan, we now have zero HoldCo debt following the full repayment of the $550m bond in May 2024. In total, 86% of our market debt is now in local currency, having paid down $828m of foreign currency debt over the last year.

Leverage of 1.6x on 30 June 2024 compares to 1.3x in the prior period. Of the 0.3x increase, 0.2x was due to the decrease in reported currency EBITDA, with the balance due to an increase in lease liabilities.
The $100m share buyback continues, with 21m shares purchased for a consideration of $29m as at the end of June 2024.

Sustainability strategy

The Sustainability Report for 2024 was published in June, updating on the Group’s progress against its sustainability goals, continued contribution to the UN SDGs and commitment to sustainability which underpins the Group’s business strategy.
Sunil Taldar, Chief executive officer, on the trading update:

“The continued revenue growth momentum once again reflects the resilient demand for our services, with sustained growth in our customer base and usage. Our superior execution enables us to capture these opportunities, whilst retaining our reputation as a cost leader across the industry.

Having visited most of our OpCos since I joined Airtel Africa, I am encouraged by the scale of the opportunity available across our markets in both the GSM and mobile money business. A key priority for us is to look for new opportunities to further grow our business especially in the enterprise, fibre and data centre businesses across our footprint in Africa.

We will build on the strong foundation established over many years to deliver on these new business opportunities. Most importantly, our emphasis is on significantly improving customer experience by simplifying customer journeys and providing best in class network experience to our customers, whilst remaining focused on driving efficiencies across the business.

We have initiated a comprehensive cost optimisation programme across the Group. We have already seen success in this project, with savings arising in network and distribution costs, and continued opportunities as contract renegotiations continue. We expect sustainable savings to continue as the year progresses.

A strong capital structure is critical to enabling these ambitions and future proofing our ambitious growth targets. During the quarter, we fully repaid the outstanding debt due at the HoldCo and we remain committed to further reduce foreign currency exposure across the Group to limit the impact of currency devaluation on our business. The growth opportunity across our markets remains compelling and we continue to focus on margin improvement as indicated in our FY’24 results.”

GAAP measures
(Quarter ended)
Description Jun-24 Jun-23 Reported
currency
$m $m change
Revenue 1,156 1,377 (16.1%)
Operating profit 335 462 (27.4%)
Profit/(Loss) after tax 31 (151) 120.3%
Basic EPS ($ cents) 0.2 (4.5) 103.9%
Net cash generated from operating activities 414 580 (28.7%)
Alternative performance measures (APM) 1
(Quarter ended)
Description Jun-24 Jun-23 Reported
currency Constant
currency
$m $m change change
Revenue 1,156 1,377 (16.1%) 19.0%
EBITDA 523 682 (23.3%) 11.3%
EBITDA margin 45.3% 49.5% (424) bps (312) bps
EPS before exceptional items ($ cents) 2.3 3.9 (41.4%)
Operating free cash flow 376 542 (30.6%)
(1) Alternative performance measures (APM) are described on page 18.

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 Alastair Jones Investor.relations@africa.airtel.com +44 7464 830 011 +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 13:00pm UK time (BST), on Thursday 25th July 2024, including a Question-and-Answer 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 of measure Quarter ended
Jun-24 Jun-23 Reported currency
change Constant currency
change
Profit and loss summary
Revenue 1 $m 1,156 1,377 (16.1%) 19.0%
Voice revenue $m 476 621 (23.4%) 9.5%
Data revenue $m 409 486 (15.8%) 26.4%
Mobile money revenue 2 $m 222 201 10.1% 28.4%
Other revenue $m 100 114 (12.6%) 23.0%
Expenses $m (641) (702) (8.7%) 26.3%
EBITDA 3 $m 523 682 (23.3%) 11.3%
EBITDA margin % 45.3% 49.5% (424) bps (312) bps
Depreciation and amortisation $m (188) (220) (14.6%) 20.4%
Operating profit $m 335 462 (27.4%) 6.8%
Other finance cost – net of finance income 4 $m (139) (212) (34.1%)
Finance cost – exceptional items 5 $m (122) (471) (74.2%)
Total finance cost $m (261) (683) (61.8%)
Profit/(Loss) before tax $m 74 (221) 133.6%
Tax $m (85) (84) 1.5%
Tax – exceptional items 5 $m 42 154 (72.5%)
Total tax (charge)/credit $m (43) 70 162.1%
Profit/(Loss) after tax $m 31 (151) 120.3%
Non-controlling interest $m (24) (19) 26.1%
Profit attributable to owners of the company – before exceptional items $m 87 147 (41.3%)
Profit/(Loss) attributable to owners of the company $m 7 (170) 103.9%
EPS – before exceptional items Cents 2.3 3.9 (41.4%)
Basic EPS Cents 0.2 (4.5) 103.9%
Weighted average number of shares million 3,737 3,751 (0.4%)
Capex $m 147 140 4.9%
Operating free cash flow $m 376 542 (30.6%)
Net cash generated from operating activities $m 414 580 (28.7%)
Net debt $m 3,728 3,321
Leverage (net debt to EBITDA) Times 1.6x 1.3x
Return on capital employed % 22.9% 23.7% (82) bps
Operating KPIs
ARPU $ 2.5 3.2 (22.9%) 9.3%
Total customer base million 155.4 143.1 8.6%
Data customer base million 64.4 56.8 13.4%
Mobile money customer base million 39.5 34.3 14.9%
(1) Revenue includes inter-segment eliminations of $51m for the quarter ended 30 June 2024 and $45m for the prior period.

(2) Mobile money revenue post inter-segment eliminations with mobile services were $171m for the quarter ended 30 June 2024, and $156m for the prior period.

(3) EBITDA includes other income of $8m for the quarter ended 30 June 2024 and $7m for the prior period.

(4) Other finance cost – net of finance income of $139m for the quarter ended 30 June 2024 and $212m in the prior period includes derivative and foreign exchange losses of $14m and $99m in the respective periods which have not been treated as exceptional items. Excluding these losses, other finance cost – net of finance income was $125m for the quarter ended 30 June 2024 and $113m for the prior period.

(5) Finance cost – exceptional items of $122m for the quarter ended 30 June 2024 and $471m for the prior period relates to derivative and foreign exchange losses following the devaluation of the Nigerian naira, which resulted in an exceptional tax gain of $42m and $154m, respectively. As a result, there was a $80m negative impact on profit after tax in quarter ended 30 June 2024 and $317m in the prior period.

Financial review for the quarter ended 30 June 2024

Revenue

Group revenue in reported currency declined by 16.1% to $1,156m, with constant currency growth of 19.0%. Group mobile services revenue grew by 17.4% in constant currency, with voice revenue growth of 9.5% and data revenues increasing by 26.4% over the period. In Nigeria, constant currency mobile services revenues increased by 33.2%, whilst East Africa saw 19.7% growth and Francophone Africa increased by 3.6%. Mobile money revenue grew by 28.4% in constant currency, primarily driven by continued strong growth in East Africa.
Reported currency revenue growth was particularly impacted by significant currency devaluations in Nigeria, Malawi, Zambia and Tanzania. In particular, the naira devalued from a weighted average NGN/USD rate of 503 in the prior period to NGN/USD 1,384 in the current period.
EBITDA
Reported currency EBITDA declined by 23.3% to $523m reflecting the impact of currency devaluation over the period, particularly in Nigeria. In constant currency, EBITDA increased by 11.3% with EBITDA margins of 45.3%, a decline of 424bps in reported currency. The lower contribution of Nigeria following the significant naira depreciation and a significant increase in fuel prices (mainly in Nigeria by over 70%), were the primary drivers of the margin decline over the period. Mobile services EBITDA increased 7.7% in constant currency with EBITDA margin at 44.4%, whilst mobile money EBITDA margins of 53.5%, increased 223bps in constant currency, supporting growth of 34.0%.
Finance costs

Total finance costs for the quarter ended 30 June 2024 was $261m, primarily impacted by $136m of derivative and foreign exchange losses (reflecting the revaluation of US dollar balance sheet liabilities and derivatives following currency devaluation), of which $122m was classified as exceptional following the naira devaluation[1]. Finance costs excluding exceptional items and derivative and foreign exchange losses increased from $113m to $125m in the current period primarily on account of shift of foreign currency debt to local currency debt in the operating entities carrying a higher average interest rate and higher interest on lease liabilities.

Profit/(Loss) before tax

Profit before tax at $74m during the quarter ended 30 June 2024 was largely impacted by the $136m derivative and foreign exchange losses as discussed above and lower EBITDA due to significant currency devaluation across key markets.

Taxation

Total tax charges were $43m as compared to a $70m credit in the prior period. Total tax charges in the current period reflected an exceptional gain of $42m and $154m in the prior period following the Nigerian naira devaluation. Tax charges excluding exceptional items were $85m compared to $84m in the prior period.

Tax charge of $43m during the quarter ended 30 June 2024, on a profit before tax of $74m was largely due to profit mix between various OpCo’s and withholding taxes.

Profit/(Loss) after tax

Profit after tax of $31m during the quarter ended 30 June 2024 was primarily impacted by the $80m of exceptional derivative and foreign exchange losses (net of tax) and lower EBITDA due to significant currency devaluation across key markets.

Basic EPS

Basic EPS at 0.2 cents during the quarter ended 30 June 2024 was impacted by the exceptional derivative and foreign exchange losses as explained above. EPS before exceptional items and derivative and foreign exchange losses for the quarter ended 30 June 2024 was 2.6 cents as compared to 5.9 cents in the prior period, reflecting the impact of significant currency devaluation across key markets on EBITDA.

Leverage
Leverage increased from 1.3x in the prior period to 1.6x as on 30 June 2024. Of the 0.3x increase, 0.2x was due to the decrease in reported currency EBITDA following the naira devaluation, with the remaining increase due to an increase in lease liabilities. In May 2024, we fully repaid the remaining $550m debt due at the HoldCo level. As of 30 June 2024, 86% of our OpCo debt is in local currency compared to 68% a year ago.

GAAP measures
Revenue
Reported revenue of $1,156m, declined by 16.1% in reported currency, and grew by 19.0% in constant currency driven by both customer base growth of 8.6% and ARPU growth of 9.3%. The gap between constant currency and reported currency revenue growth was due to the average currency devaluations between the periods, mainly in the Nigerian naira, the Malawian kwacha, the Zambian kwacha, and the Tanzanian shilling partially offset by an appreciation in the Kenya shilling.

Reported mobile services revenue at $986m, declined 19.4%, and grew by 17.4% in constant currency. Mobile money revenue grew by 10.1% in reported currency. In constant currency, mobile money revenue grew by 28.4%, driven by revenue growth in East Africa of 31.7% and Francophone Africa of 18.4%.

Operating profit

Operating profit in reported currency declined by 27.4% to $335m as currency headwinds offset the 6.8% growth of operating profit in constant currency.

Total finance costs
Total finance costs of $261m for the quarter ended 30 June 2024, was lower by $422m over the prior period. Current and prior period finance costs were primarily impacted by $122m and $471m of exceptional derivative and foreign exchange losses respectively, following the significant currency devaluation in Nigeria. Excluding exceptional items, finance cost was lower by $73m primarily on account of lower derivative and foreign exchange losses, partially offset by higher interest on market debt due to the ongoing shift of foreign currency debt to local currency debt in the operating entities carrying a higher average interest rate, and higher interest on lease liabilities.

The Group’s effective interest rate increased to 12.7% compared to 8.5% in the prior period, largely driven by higher local currency debt at the OpCo level, in line with our strategy of localising debt at OpCo, and the repayment of $550m of HoldCo debt which carried a lower than average interest rate.

Taxation
Total tax charges of $43m as compared to credit of $70m in the prior period. Total tax charges in the current period reflected an exceptional gain of $42m and $154m in the prior period on account of the Nigerian naira devaluation. Tax charges excluding exceptional items were $85m compared to $84m in the prior period.

Basic EPS

Basic EPS at 0.2 cents during the quarter ended 30 June 2024 was impacted by the derivative and foreign exchange losses as explained above.

Net cash generated from operating activities
Net cash generated from operating activities was $414m, lower by 28.7% as compared to $580m in the prior period.

Alternative performance measures[1]

EBITDA
EBITDA of $523m, declined by 23.3% in reported currency, and increased by 11.3% in constant currency. Growth in constant currency EBITDA was led by revenue growth and supported by continued improvement in operating efficiencies offset by the impact that inflationary cost pressures in a number of markets. The EBITDA margin declined by 424 basis points in reported currency to 45.3% reflecting the impact of lower contribution of Nigeria post significant naira devaluation and inflationary cost pressures.
The gap between constant currency and reported currency EBITDA growth was due to the currency devaluations between the periods, mainly in the Nigerian naira, the Malawian kwacha, the Zambian kwacha, and the Tanzanian shilling partially offset by an appreciation in the Kenyan shilling.
Tax
The effective tax rate was 39.4%, compared to 39.2% in the prior period. The effective tax rate is higher than the weighted average statutory corporate tax rate of approximately 32%, largely due to the profit mix between various OpCos and withholding taxes on dividends by subsidiaries.

Exceptional items

The exceptional item of $122m in the current period and $471m in the prior period relates to derivative and foreign exchange losses following the devaluation of the Nigerian naira. These losses resulted in an exceptional tax gain of $42m and $154m respectively.

EPS before exceptional items
EPS before exceptional items of 2.3 cents as compared to 3.9 cents in the prior period was primarily impacted by the significant currency headwinds impacting reported currency results. EPS before exceptional items and derivative and foreign exchange losses was 2.6 cents compared to 5.9 cents in the prior period.

Operating free cash flow
Operating free cash flow was $376m, lower by 30.6%, as a result of lower EBITDA and higher capex in current period.

Other significant updates

Repayment of remaining $550m bond achieving a zero-debt position at HoldCo

On 20 May 2024, the Company announced that it has repaid in full the 5.35% Guaranteed Senior Notes maturing in May 2024. This bond repayment of $550m was made exclusively out of the cash reserves at the HoldCo and is a continuation of its strategy to reduce external foreign currency debt.

At the time of the IPO in June 2019, the Group had $2,719m of external debt at HoldCo which resulted in significant exposure to currency fluctuations and the reliance on upstreaming funds to cover both interest costs and the principal repayment. Through a consistent execution of its strategy supporting strong free cash flow generation, and continued upstreaming success, the Group has been reducing Holdco debt over the past few years and has now reached the significant milestone of a zero-debt position at HoldCo.

The current leverage and capital structure is a reflection of the Group’s successful capital allocation strategy that has been in place since our IPO, and it will aim to continue reducing foreign currency debt obligations across its OpCo’s.

Update on share buy-back programme

On 1 February 2024, the Company announced that in light of the increase in HoldCo cash, current leverage and the consistent strong operating cash generation, the Board intended to launch a share buy-back programme of up to $100m, over a 12-month period.

On 1 March 2024, Airtel Africa plc announced the commencement of its share buyback programme. As at the end of June 2024, the Company has purchased 21 million shares for a total consideration of $29m.

Directorate changes

On 9 May 2024, Airtel Africa plc announced the appointment of Paul Arkwright, CMG, as an independent non-executive director of the Company, with immediate effect.

On 3 July 2024, following the conclusion of the AGM, John Danilovich retired as an independent non-executive director of Airtel Africa plc.

Retirement of Airtel Africa plc CEO and appointment of Successor

On 2 January 2024, Airtel Africa plc announced the retirement of Chief Executive Officer Olusegun “Segun” Ogunsanya and the appointment of Sunil Taldar, who joined Airtel Africa in October 2023 as Director – Transformation, as Chief Executive Officer (CEO). Following a transition period, Sunil Taldar has been appointed to the Board as an Executive Director and has assumed the role of CEO on 1 July 2024, at which time Segun retired from the Board and the Company. Following his retirement from Airtel Africa, Segun will be available to advise the Chairman, the Airtel Africa Board and Chief Executive Officer for a 12-month period and appointed as Airtel Africa Charitable Foundation’s inaugural Chair.

Nigerian Communications Commission directive on subscriber registration compliance

In December 2023, the Nigerian Communications Commission (NCC) informed Airtel Nigeria, in an industry-wide directive, to undertake full network barring of all SIMs that have failed to submit their National Identity Numbers (NIN) on or before 28 February 2024. Likewise, customers that have submitted their NINs, but remain unverified are to be barred by 31 July 2024 (earlier deadline was 15 April 2024). Furthermore, guidelines were issued whereby no customer can have more than 4 active SIMs and all such excess SIMs must be barred by 29 March 2024. This directive is part of the ongoing Federal Government NIN-SIM harmonisation exercise requiring all subscribers to provide valid NIN information to update SIM registration records.

Airtel Nigeria has complied with the directives issued and barred all customers without NINs as well as customers with more than 4 active SIMs which had a very negligible impact on revenue. Since the directive was issued in December 2023, 8.7m customers have already been verified. Currently we are engaging with approximately 4.9m customers whose NINs are yet to be verified, with approximately $3m-$4m of monthly revenue at risk. We continue to engage with the NCC and work closely with the relevant authorities to facilitate and accelerate the verification process to minimise the risk of service disruption to these customers, whilst also limiting the revenue impact from our compliance to the directive issued.

Chad License Renewal

In July 2024, Airtel Tchad S.A (“Airtel Tchad”), a subsidiary of the Group was issued with a National Telecom Operator licence for 2G/3G and 4G network. This licence renewal is with effect from April 2024 and is for a period of 10 years for a gross consideration of CFA54bn (approximately $90m).

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 airtel.africa/investors

Financial review for the quarter ended 30 June 2024

Nigeria – Mobile services

Description Unit of
measure Quarter ended
Jun-24 Jun-23 Reported currency
change Constant currency
change
Summarised statement of operations
Revenue $m 256 528 (51.6%) 33.2%
Voice revenue 1 $m 112 254 (55.8%) 21.6%
Data revenue $m 117 228 (48.6%) 41.3%
Other revenue 2 $m 27 46 (42.8%) 56.9%
EBITDA $m 123 284 (56.5%) 19.3%
EBITDA margin % 48.2% 53.7% (549) bps (565) bps
Depreciation and amortisation $m (49) (90) (45.9%) 46.5%
Operating profit $m 83 182 (54.2%) 29.5%
Capex $m 38 47 (19.6%) (19.6%)
Operating free cash flow $m 85 237 (63.9%) 48.7%
Operating KPIs
Total customer base million 50.4 48.2 4.6%
Data customer base million 26.3 23.7 11.2%
Mobile services ARPU $ 1.7 3.6 (53.7%) 27.4%
Voice revenue includes inter-segment revenue of $0.3m in the quarter ended 30 June 2024 and in the prior period. Excluding inter-segment revenue, voice revenue was $112m in quarter ended 30 June 2024 and $254m in the prior period.
Other revenue includes inter-segment revenue of $0.5m in the quarter ended 30 June 2024 and in the prior period. Excluding inter-segment revenue, other revenue was $26m in quarter ended 30 June 2024 and $46m in the prior period.
Revenue grew by 33.2% in constant currency, largely driven by continued strength in the demand for data services across the country. In reported currency, revenues declined by 51.6% to $256m on account of the significant devaluation of the Nigerian naira. The constant currency revenue growth was driven by both customer base growth of 4.6% and ARPU growth of 27.4%. Customer base growth was negatively impacted by barring of customers pursuant to KYC directives by the regulator in Q4’24.

Voice revenue grew by 21.6% in constant currency, driven by both customer base growth of 4.6% and voice ARPU growth of 16.3%.

Data revenue grew by 41.3% in constant currency, as a function of both data customer and data ARPU growth of 11.2% and 25.2%, respectively. Data usage per customer increased by 28.6% to 7.3 GB per month (from 5.7 GB in the prior period). Our continued 4G network rollout has resulted in nearly 100% of all our sites delivering 4G services.

Other revenues grew by 56.9% in constant currency, contributed by growth in messaging and value-added services coupled with 47.5% growth in leased line revenue.

EBITDA of $123m declined by 56.5% in reported currency but increased by 19.3% in constant currency. The EBITDA margin declined by 549 basis points to 48.2% reflecting the continued inflationary pressures across the business, particularly from the increase in diesel prices. Average diesel prices in Nigeria increased by over 70% compared to the prior period.

Operating free cash flow was $85m, up by 48.7% in constant currency, largely due to the EBITDA growth while in reported currency, operating free cash flow declined by 63.9% due to lower EBITDA on account of significant naira devaluation.

East Africa – Mobile services 1

Description Unit of
measure Quarter ended
Jun-24 Jun-23 Reported currency
change Constant currency
change
Summarised statement of operations
Revenue $m 423 397 6.5% 19.7%
Voice revenue 2 $m 210 212 (0.6%) 12.4%
Data revenue $m 170 151 12.3% 25.7%
Other revenue 3 $m 43 34 23.5% 38.2%
EBITDA $m 198 195 1.3% 14.5%
EBITDA margin % 46.7% 49.1% (240) bps (215) bps
Depreciation and amortisation $m (76) (74) 3.7% 12.4%
Operating profit $m 108 111 (3.0%) 13.7%
Capex $m 77 54 43.3% 43.3%
Operating free cash flow $m 121 141 (14.6%) 1.3%
Operating KPIs
Total customer base million 72.0 65.0 10.8%
Data customer base million 27.4 23.9 14.6%
Mobile services ARPU $ 2.0 2.1 (4.2%) 7.7%
The East Africa business region includes Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia.
Voice revenue includes inter-segment revenue of $0.1m in the quarter ended 30 June 2024 and $0.2m in the prior period. Excluding inter-segment revenue, voice revenue was $210m in quarter ended 30 June 2024 and $211m in the prior period.
Other revenue includes inter-segment revenue of $3m in the quarter ended 30 June 2024 and $2m in the prior period. Excluding inter-segment revenue, other revenue was $40m in quarter ended 30 June 2024 and $32m in the prior period.
East Africa revenue grew by 6.5% in reported currency to $423m, and by 19.7% in constant currency. The constant currency growth was made up of voice revenue growth of 12.4%, data revenue growth of 25.7% and other revenue growth of 38.2%.

Voice revenues were supported by both customer base growth of 10.8% and voice ARPU growth of 1.2%. The customer base growth was largely driven by expansion of both increased network coverage and the increasing scale of the distribution network. Voice ARPU’s were impacted by the interconnect rate reduction in Kenya, Tanzania and Rwanda.

Data customer base growth of 14.6% and data ARPU growth of 7.1% drove the strong performance in data revenues. Our continued investment in the network and expansion of 4G network infrastructure resulted in 97.6% of our East Africa network sites on 4G, compared to 90.4% in the prior period. Furthermore, 871 sites are 5G enabled in four markets. In Q1’25, total data usage per customer increased to 5.5 GB per customer per month, up by 22.2%.

EBITDA increased to $198m, up by 1.3% in reported currency and up by 14.5% in constant currency. EBITDA margin at 46.7%, declined by 240 basis points as a result of rising fuel prices in several of our key markets.

Operating free cash flow was $121m, up by 1.3% in constant currency, due largely to EBITDA growth, partially offset by increased capex.

The differential in growth rates (between constant currency and reported currency) is primarily contributed by the devaluation in the Zambian kwacha, the Malawian kwacha, and the Tanzanian shilling, partially offset by the Kenyan shilling appreciation.

Francophone Africa – Mobile services 1

Description Unit of
measure Quarter ended
Jun-24 Jun-23 Reported currency
change Constant currency
change
Summarised statement of operations
Revenue $m 307 299 2.9% 3.6%
Voice revenue 2 $m 154 158 (2.4%) (1.7%)
Data revenue $m 122 107 14.3% 15.2%
Other revenue 3 $m 31 34 (9.0%) (8.5%)
EBITDA $m 114 131 (12.7%) (12.2%)
EBITDA margin % 37.1% 43.8% (666) bps (666) bps
Depreciation and amortisation $m (55) (50) 10.2% 11.0%
Operating profit $m 46 69 (33.6%) (33.2%)
Capex $m 23 31 (25.1%) (25.1%)
Operating free cash flow $m 91 100 (8.9%) (8.1%)
Operating KPIs
Total customer base million 32.9 29.8 10.3%
Data customer base million 10.7 9.2 16.0%
Mobile services ARPU $ 3.1 3.4 (7.4%) (6.8%)
(1) The Francophone Africa business region includes Chad, Democratic Republic of the Congo, Gabon, Madagascar, Niger, Republic of the Congo, and Seychelles.

Voice revenue includes inter-segment revenue of $1m in the quarter ended 30 June 2023. Excluding inter-segment revenue, voice revenue was $157m in the quarter ended 30 June 2023.
Other revenue includes inter-segment revenue of $1m in the quarter ended 30 June 2024 and in the prior period. Excluding inter-segment revenue, other revenue was $30m in quarter ended 30 June 2024 and $33m in the prior period.
Revenue grew by 2.9% in reported currency and by 3.6% in constant currency. Slowdown in revenue growth is mainly due to high inflation in key markets impacting consumer spend, although customer growth remained robust across the region.

Voice revenue declined by 1.7% in constant currency, as customer base growth of 10.3% was more than offset by a decline in voice ARPU. Voice ARPU was negatively impacted by an interconnect rate reduction in Congo B and Niger while the customer base growth was supported by the expansion of both network coverage and distribution infrastructure.

Data revenue grew by 15.2% in constant currency, supported by customer base growth of 16.0%. Our continued 4G network rollout resulted in an increase in total data usage of 44.4% and per customer data usage increase of 23.2%. Data usage per customer increased to 4.8 GB per month (up from 3.9 GB in the prior period).

EBITDA at $114m, declined by 12.7% and 12.2% in reported and constant currency, respectively. The EBITDA margin declined to 37.1%, a decline of 666 basis points, impacted by an increase in fixed frequency fees in a key market, rising energy costs combined with a slowdown in revenue growth in key markets.

Operating free cash flow was $91m, declined by 8.1% in constant currency, due to the decline in EBITDA, partially offset by lower capex.