According to media reports, Airtel Africa has acknowledged that its sale of tower infrastructure in Madagascar, Malawi and Tanzania, while delivering immediate short-term revenue, represents a long-term shortfall. This, coupled with regulatory KYC issues in Nigeria, has impacted the telco’s revenue growth.
In its financial results for the half year ended 30 September 2022, the telco reported 16.9 per cent constant currency revenue growth, short of the 20.4 per cent projected.
Airtel Africa’s financial results revealed that subscriber base across the 14 markets in Africa increased to 134.7 million, with 3.1 million net additions in the past quarter.
The telco added that its active mobile money subscriber base grew by 7.6 per cent in the quarter and 24 per cent year-on-year to 29.7 million customers.
Segun Ogunsanya, Airtel Africa CEO, said, “Airtel Africa continued to deliver strong results as its purpose of transforming the lives of people across Sub-Saharan Africa through digital and financial inclusion gained further momentum, with growth accelerating in the second quarter. While we are not immune to the current macro-economic challenges and currency devaluation risks, I’m pleased to report double-digit reported revenue growth in the period, largely driven by customer growth of 9.7 per cent.”
In May 2021, Airtel Africa sold its tower portfolio in Tanzania to a JV in a transaction valued at around US$ 175 million.
According to media reports, the Tanzania tower portfolio comprised approximately 1 400 towers that formed part of the Group’s wireless telecommunication infrastructure network.
Earlier this year, the company signed an MoU with Helios Towers to sell an additional 1 229 towers in Madagascar and Malawi for US$ 108 million.
The company also announced that it would sell its tower assets in Chad and Gabon to Helios Towers.