Airtel Africa’s revenue increased by 17.8 percent in the first quarter of this year with the Nigerian market accounting for the largest chunk of the earnings generated from data consumption and voice calls.
The Bharti Airtel subsidiary generated $1.22 billion in the first three months of 2022 across its 14 markets in Africa, surpassing the $1.03 billion the network provider reported in the first quarter of 2021.
Airtel Africa’s Q1 2022 financial statement seen by Ripples Nigeria on Wednesday revealed that the company’s turnover rose by 27.7 percent in Nigeria during the period under review, more than the earnings reported in East Africa (22.7 percent) and Francophone Africa (17.2 percent).
In this article, five key metrics that give insights into Airtel Africa’s performance are presented, comparing the company’s 2021 results with the past year as reported on NGX.
Profit
Airtel Africa reported an 82 percent increase in profit after tax to $755 million in 2021 from $415 million the preceding year.
The company earned profit before tax of $1,224 million in 2021 from $697 million. This profit is earned before deducting tax charges.
It also recorded an increase in operating profit by 39.4 percent to $1,535 million in 2021 from $1,119 million in 2020. Operating profit is the profit earned from day to day activities of an organisation.
Revenue
Airtel Africa recorded an increase in underlying revenue by 23.3 percent to $4,714 million in 2021 from $3,888 million in 2020.
Airtel Africa has 3 reporting segments which includes Voice, Data and Mobile money. It recorded its highest revenue from Voice with $2,358 million in 2021 from $2,083 million in 2020.
Revenue from Data resulted in $1,525 million in 2021 from $1,157 million in 2020. Mobile money revenue and other revenue were $553 million and $407 million in 2021 respectively from $407 million and $347 million in the last year.
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Nigeria reported revenue of $1,878 million in 2021 from $1,552 million in the previous year, showing a growth of 21 percent.
Cash Flow
The cash flow of an organisation shows its liquidity. It is used to know how quickly it can convert its assets into cash. Airtel Africa’s net cash generated from operating activities grew by 20.7 percent to $2,011 million in 2021 from $1,666 million in 2020.
Profit margin
This is a financial ratio that shows how a company is able to turn as much of its revenue into profit. In our analysis, we use the net profit margin which is measured as the net profit divided by revenue multiplied by hundred.
A higher profit margin shows the firm is more efficient in generating more profit from its revenue and vice versa. BusinessDay analysis shows its profit margin to be 16 percent in 2021 from 10.7 percent in 2020.
Customer Base
Airtel’s customer base across its operating regions increased by 8.7 percent to 128.4 million in 2021 from 118.2 million in 2020. Data customer base increased by 15.2 percent to 46.7 million in 2021 from 40.6 million in the preceding year.
At the end of the year, Airtel Nigeria had an active customer base of 44.4 million.
