Bharti Airtel’s Africa business posted profit after tax of $103 million in the December quarter, down 21% from $133 million a year ago, as tax payments soared.
However, revenue jumped 14.2% to $883 million from $783 million a year ago, largely driven by improved performance across voice, mobile data and mobile money segments.
Airtel Africa is the holding company for Bharti Airtel’s operations in 14 countries. In June 2019, it raised $750 million through an initial public offering, achieving a market capitalization of around $3.9 billion. The company had a net debt of $3.2 billion as of December end.
“Our financial performance in Q3 was strong as we delivered double-digit revenue growth in both reported and constant currency. Revenue growth accelerated in Q3 to 14.2% as a result of improved performance in the Rest of Africa, supported by solid results in Nigeria and East Africa. This is now the eighth consecutive quarter that we have delivered double-digit revenue growth and Ebitda margin expansion in constant currency,” Raghunath Mandava, chief executive officer, Airtel Africa, said in a statement.
Airtel Africa provides mobile voice and data services and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.
The revenue increase is significant for the African arm of Bharti Airtel, which battles a bruising tariff war with rival Reliance Jio Infocomm Ltd at home turf. It also comes at a time when Bharti Airtel and other operators are emerging from an adverse court verdict which mandates telecom companies to pay dues totalling over ₹1 trillion to the Indian government.
The 24 October Supreme Court order that ended the 14-year legal battle between telcos and the government directed Bharti Airtel to cough up ₹35,586 crore in dues, straining its already precarious financial situation in India.
The telecom company is currently awaiting a Supreme Court hearing on its modification plea filed earlier this month which requests more time to negotiate a sustainable payment schedule.
Source: Livemint
