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Airtel Africa Q2 Results Review - Strong Growth; Value Add To Bharti: Motilal Oswal

A strong balance sheet with low leverage and healthy free cash flow further adds to the strong capabilities.

<div class="paragraphs"><p>(Source: Airtel Africa website)</p></div>
(Source: Airtel Africa website)

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Motilal Oswal Report

Airtel Africa posted a healthy performance in Q2 FY23 with revenue/Ebitda growth of 4.1%/3.9% QoQ on reported basis; while on constant currency basis, revenue/Ebitda grew 6.7%/7.1% QoQ to $1.4 billion/$663 million (5% above estimate), respectively.

Ebitda margin improved 20 basis points to 48.9%. Reported profit after tax was down 15% QoQ to $152 million due to net finance cost of Rs 206 million (up 36% QoQ), higher tax rate and exceptional loss of $21 million. Adjusting for the exceptional loss, profit after tax declined 3% QoQ.

Airtel Africa continued to invest in 4G network to expand the breadth and depth of the network with ~$170 million spent towards 4G spectrum acquisition. It reached almost 99%/88% of 4G site coverage in Nigeria/East Africa, respectively, while 69% coverage was achieved for Francophone.

Click on the attachment to read the full report:

Motilal Oswal Airtel Africa Q2FY23 Results Update.pdf

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