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January 29, 2021
| Mobile Services I Mobile Money |
Airtel Africa plc
ORK
Airtel Africa
Report on the results for the third quarter and nine months ended December 31, 2020
The financial statements included in this quarterly report fairly presents in all material respects the financial position, results of operations and cash flow of the Group as of, and for the periods presented in this report.
Page 1 of 60
Supplemental Disclosures
Basis of preparation: - The results for the nine months ended 31
December 2020 are unaudited and in the opinion of management, include all adjustments necessary for the fair presentation of the results of the same period. The financial information has been prepared based on International Accounting Standard 34 (IAS 34) and apply the same accounting policies, presentation and methods of calculation as those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 March 2020 except to the extent required/ prescribed by IAS 34. This report should be read in conjunction with audited consolidated financial statements and related notes for the year ended 31 March 2020. The comparative information has been drawn based on Airtel Africa plc’s Audited Consolidated Financial Statements for the year ended 31 March 2020 prepared under International Financial Reporting Standard (IFRS).
Use of certain Alternative performance measures (APM):- This result
announcement contains certain information on the Group’s results of
operations and cash flows that have been derived from amounts
calculated in accordance with International Financial Reporting Standard
(IFRS), but are not in themselves IFRS measures. They should not be
viewed in isolation as alternatives to the equivalent IFRS measures and
should be read in conjunction with the equivalent IFRS measures.
Further, disclosures are also provided under “7.2 Use of Alternative performance measures (APM) Financial Information” on page 33
Safe Harbor: The IAS 34 financials considered for the purpose of this
report is unaudited.
Convenience translation: - We publish our financial statements in
United States Dollars. All references herein to “US dollars”, “USD”, “$”
and “US$” are to United States dollars. Translation of income statement
items have been made from local currencies of Africa operating units to
USD (unless otherwise indicated) using the respective monthly average
rates. Translation of statement of financial position items has been made
using the closing rate. All amounts translated as described above are
provided solely for the convenience of the reader, and no representation
is made that the local currencies or USD amounts referred to herein could
have been or could be converted into USD or local currencies
respectively, as the case may be, at any particular rate, the above rates
or at all. Any discrepancies in any table between totals and sums of the
amounts listed are due to rounding off.
Others: In this report, the terms “we”, “us”, “our”, “ Airtel - Africa”, or
“Africa”, unless otherwise specified or the context otherwise implies, refer
to the Airtel Africa plc and its subsidiaries and its associate, Bharti Airtel
International (Netherlands) B.V., Airtel (Seychelles) Limited, Airtel Congo
S.A, Airtel Gabon S.A., Airtel Madagascar S.A., Airtel Malawi plc, Airtel
Mobile Commerce B.V., Airtel Mobile Commerce Holdings B.V., Airtel
Mobile Commerce Kenya Limited, Airtel Mobile Commerce Limited
(Malawi), Airtel Mobile Commerce Madagascar S.A., Airtel Mobile
Commerce Rwanda Limited, Airtel Mobile Commerce (Seychelles)
Limited, Airtel Mobile Commerce Tanzania Limited, Airtel Mobile
Commerce Tchad SARL, Airtel Mobile Commerce Uganda Limited, Airtel
Mobile Commerce Zambia Limited , Airtel Money RDC S.A., Airtel Money
Niger S.A., Airtel Money S.A. (Gabon), Airtel Networks Kenya Limited,
Airtel Networks Limited, Airtel Networks Zambia plc, Airtel Rwanda
Limited, Airtel Tanzania plc, Airtel Tchad S.A., Airtel Uganda Limited,
Bharti Airtel Africa B.V., Bharti Airtel Chad Holdings B.V. , Bharti Airtel
Congo Holdings B.V., Bharti Airtel Developers Forum Limited, Bharti
Airtel Gabon Holdings B.V. , Bharti Airtel Kenya B.V., Bharti Airtel Kenya
Holdings B.V., Bharti Airtel Madagascar Holdings B.V. , Bharti Airtel
Malawi Holdings B.V. , Bharti Airtel Mali Holdings B.V., Bharti Airtel Niger
Holdings B.V. , Bharti Airtel Nigeria B.V. , Bharti Airtel Nigeria Holdings
II B.V. , Bharti Airtel RDC Holdings B.V. , Bharti Airtel Services B.V. ,
Bharti Airtel Tanzania B.V., Bharti Airtel Uganda Holdings B.V., Bharti
Airtel Zambia Holdings B.V., Celtel (Mauritius) Holdings Limited, Airtel
Congo RDC S.A., Celtel Niger S.A., Channel Sea Management
Company (Mauritius) Limited, Congo RDC Towers S.A., Gabon Towers
S.A. (under dissolution), Indian Ocean Telecom Limited, Madagascar
Towers S.A., Malawi Towers Limited, Mobile Commerce Congo S.A.,
Montana International, Partnership Investments SARL, Societe
Malgache de Telephone Cellulaire S.A., Tanzania Towers Limited (under
liquidation), Bharti Airtel Rwanda Holdings Limited , Airtel Money
Transfer Limited, Airtel Money Tanzania Limited , Airtel Mobile
Commerce Nigeria Limited, Airtel Mobile Commerce Nigeria B.V., Airtel
Mobile Commerce (Seychelles) B.V., Airtel Mobile Commerce Congo
B.V., Airtel Mobile Commerce Kenya B.V., Airtel Mobile Commerce
Madagascar B.V., Airtel Mobile Commerce Malawi B.V., Airtel Mobile
Commerce Rwanda B.V., Airtel Mobile Commerce Tchad B.V., Airtel
Mobile Commerce Uganda B.V., Airtel Mobile Commerce Zambia B.V.,
Airtel International LLP, Tigo Rwanda Limited, Airtel Money Trust,
Seychelles Cable Systems Company Limited (Associate), Airtel Mobile
Commerce Gabon B.V., Airtel Mobile Commerce Niger B.V., Airtel
Mobile Commerce DRC B.V., Airtel Money Kenya Limited and Airtel
Digital Services Holdings B.V. (incorporated w.e.f. 12th November, 2020).
Disclaimer: By reading this presentation you agree to be bound by the
following conditions.
The information contained in this presentation in relation to Airtel Africa
plc ("Airtel Africa") and its subsidiaries has been prepared solely for use
at this presentation. The presentation is not directed to, or intended for
distribution to or use by, any person or entity that is a citizen or resident
or located in any jurisdiction where such distribution, publication,
availability or use would be contrary to law or regulation or which would
require any registration or licensing within such jurisdiction.
References in this presentation to "Airtel Africa", "Group", "we", "us" and
"our" when denoting opinion refer to Airtel Africa plc and its subsidiaries.
Forward-looking statement
This document contains certain forward-looking statements including
"forward-looking" statements made within the meaning of Section 21E of
the United States Securities Exchange Act of 1934, regarding our
intentions, beliefs or current expectations concerning, amongst other
things, our results of operations, financial condition, liquidity, prospects,
growth, strategies and the economic and business circumstances
occurring from time to time in the countries and markets in which the
Group operates.
These statements are often, but not always, made through the use of
words or phrases such as "believe," "anticipate," "could," "may," "would,"
"should," "intend," "plan," "potential," "predict," "will," "expect," "estimate,"
"project," "positioned," "strategy," "outlook", "target" and similar
expressions.
It is believed that the expectations reflected in this document are
reasonable, but they may be affected by a wide range of variables that
could cause actual results to differ materially from those currently
anticipated.
All such forward-looking statements involve estimates and assumptions
that are subject to risks, uncertainties and other factors that could cause
actual future financial condition, performance and results to differ
materially from the plans, goals, expectations and results expressed in
the forward-looking statements and other financial and/or statistical data
within this communication.
Among the key factors that could cause actual results to differ materially
from those projected in the forward-looking statements are uncertainties
related to the following: the impact of competition from illicit trade; the
impact of adverse domestic or international legislation and regulation;
changes in domestic or international tax laws and rates; adverse litigation
and dispute outcomes and the effect of such outcomes on Airtel Africa’s
Page 2 of 60
financial condition; changes or differences in domestic or international
economic or political conditions; the ability to obtain price increases and
the impact of price increases on consumer affordability thresholds;
adverse decisions by domestic or international regulatory bodies; the
impact of market size reduction and consumer down-trading;
translational and transactional foreign exchange rate exposure; the
impact of serious injury, illness or death in the workplace; the ability to
maintain credit ratings; the ability to develop, produce or market new
alternative products and to do so profitably; the ability to effectively
implement strategic initiatives and actions taken to increase sales
growth; the ability to enhance cash generation and pay dividends and
changes in the market position, businesses, financial condition, results
of operations or prospects of Airtel Africa.
Past performance is no guide to future performance and persons needing
advice should consult an independent financial adviser. The forward-
looking statements contained in this document reflect the knowledge and
information available to Airtel Africa at the date of preparation of this
document and Airtel Africa undertakes no obligation to update or revise
these forward-looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned not to
place undue reliance on such forward-looking statements.
No statement in this communication is intended to be, nor should be
construed as, a profit forecast or a profit estimate and no statement in
this communication should be interpreted to mean that earnings per
share of Airtel Africa plc for the current or any future financial periods
would necessarily match, exceed or be lower than the historical
published earnings per share of Airtel Africa plc.
Financial data included in this document are presented in US$ rounded
to the nearest million. Therefore, discrepancies in the tables between
totals and the sums of the amounts listed may occur due to such
rounding. The percentages included in the tables throughout the
document are based on numbers calculated to the nearest $1,000 and
therefore minor rounding differences may results in the tables.
No profit or earnings per share forecasts
No statement in this communication is intended to be, nor should be
construed as, a profit forecast or a profit estimate and no statement in
this communication should be interpreted to mean that earnings per
share of Airtel Africa for the current or any future financial periods would
necessarily match, exceed or be lower than the historical published
earnings per share of Airtel Africa.
Audience
The material in this presentation is provided for the purpose of giving information about Airtel Africa and its subsidiaries to investors only and is not intended for general consumers. Airtel Africa, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.
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TABLE OF CONTENTS
Section 1 Performance at a glance 4
Section 2 Financial Highlights
2.1 Consolidated - Summary of Consolidated Financial Statements 5
2.2 Consolidated - Summary of Statement of Financial Position 6
Section 3 Segment Wise – Summary of Financial Statements
3.1 Summarized Statement of Operations 7
3.2 Segment Wise Contribution 10
Section 4 Product wise – Summary of Financial Statements
4.1 Mobile Services – Summarized Statement of Operations 11
4.2 Mobile Services – Segment Wise Contribution 15
4.3 Mobile Money – Summarized Statement of Operations 16
4.4 Product Wise Contribution 17
Section 5 Operating Highlights 18
Section 6 Management Discussion and Analysis
6.1 Reporting Methodology 22
6.2 Key Company Developments 22
6.3 Results of Operations 24
Section 7 Detailed Financial and Related Information 29
Section 8 Net Debt and Cost Schedules 36
Section 9 Trends and Ratio Analysis 38
Section 10 Key Accounting Policies 51
Section 11 Glossary 56
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SECTION 1
PERFORMANCE AT A GLANCE
Financial Year Ended Quarter Ended
2020 2019 2018 Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Operating Highlights
Total Customer Base 000’s 110,604 98,851 89,262 118,903 116,371 111,461 110,604 107,140
Total Minutes on Netw ork Mn Min 250,080 207,334 159,549 85,651 80,375 71,891 68,870 65,086
Data MBs Mn MBs 710,510 392,631 237,563 320,568 293,919 279,541 219,015 189,798
Mobile Money Transaction Value US$ Mn 30,224 23,582 18,888 12,959 11,637 9,038 8,031 8,001
Netw ork Tow ers Nos 22,909 21,059 19,731 24,693 24,246 23,471 22,909 22,253
Total Employees Nos 3,363 3,075 3,273 3,498 3,453 3,432 3,363 3,286
No. of countries of operation Nos 14 14 14 14 14 14 14 14
Consolidated Financials (US$ Mn)
Ongoing Operations
(Reported Currency)
Revenue US$ Mn 3,422 3,077 2,910 1,034 965 851 899 883
EBITDA US$ Mn 1,515 1,332 1,139 485 437 375 397 399
EBIT US$ Mn 905 796 600 308 269 210 244 245
Cash profit from operations before
Derivative and Exchange FluctuationsUS$ Mn 1,210 1,001 786 402 357 295 325 326
Profit before tax (before exceptional items) US$ Mn 533 441 158 180 177 111 97 167
Net Income (after NCI) US$ Mn 370 412 (138) 95 70 42 65 90
Capex US$ Mn 642 630 411 188 149 66 246 150
Operating Free Cash Flow (EBITDA - Capex) US$ Mn 873 702 728 298 287 309 151 249
Net Debt US$ Mn 3,247 4,005 7,755 3,518 3,459 3,425 3,247 3,233
Shareholder's Equity US$ Mn 3,388 2,626 (1,085) 3,362 3,407 3,304 3,388 3,529
Non-controlling interests ('NCI') US$ Mn (107) (196) (232) (69) (89) (93) (107) (168)
Total Equity US$ Mn 3,281 2,429 (1,317) 3,293 3,318 3,211 3,281 3,361
Total Capital Employed US$ Mn 6,528 6,435 6,438 6,811 6,777 6,636 6,528 6,595
Key Ratios
EBITDA Margin % 44.3% 43.3% 39.1% 46.9% 45.3% 44.1% 44.1% 45.2%
EBIT Margin % 26.5% 25.9% 20.6% 29.8% 27.8% 24.7% 27.2% 27.7%
Net Profit Margin % 10.8% 13.4% (4.7%) 9.1% 7.3% 4.9% 7.2% 10.1%
Net Debt to EBITDA (LTM) Times 2.1 3.0 6.8 2.1 2.2 2.2 2.1 2.2
Net Debt to EBITDA (Annualised) Times 2.1 3.0 6.8 1.8 2.0 2.3 2.0 2.0
Interest Coverage ratio Times 5.1 3.9 3.5 6.2 5.8 5.1 5.5 5.4
Return on Equity (Pre-Tax) % 18.3% 15.3% 0.0% 17.6% 17.0% 16.9% 18.3% 18.5%
Return on Equity (Post-Tax) % 10.9% 15.7% 0.0% 8.1% 7.8% 8.7% 10.9% 11.0%
Return on Capital employed % 14.0% 12.4% 9.2% 15.5% 14.6% 13.9% 13.7% 13.2%
IFRSParticulars Unit IFRS
Mobile Money Transaction Value is in Constant Currency
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SECTION 2
FINANCIAL HIGHLIGHTS
The financial information contained in this report is drawn from Airtel Africa plc’s interim unaudited condensed consolidated financial statements
prepared under IAS 34 for the nine months ended 31 December 2020 and from Airtel Africa plc’s Audited Consolidated Financial Statements
for the year ended 31 March 2020 prepared under International Financial Reporting Standard (IFRS) for the comparative periods presented.
2.1 Summary of Consolidated Financial Statements
2.1.1 Consolidated Summarized Statement of Operations – (in Reported Currency)
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 1,034 883 17% 2,850 2,522 13%
EBITDA 485 399 22% 1,297 1,118 16%
EBITDA / Revenue 46.9% 45.2% 1.7 pp 45.5% 44.3% 1.2 pp
EBIT 308 245 26% 787 661 19%
Finance cost (net) 128 76 67% 318 225 41%
Share of results of Associate 0 0 (84%) (0) (0) (428%)
Profit before tax (before exceptional items) 180 167 8% 468 436 7%
Income tax expense 89 95 (6%) 235 210 12%
Profit after tax (before exceptional items) 91 73 25% 233 227 3%
Non Controlling Interest (before exceptional items) 17 10 70% 46 23 100%
Net Income (before exceptional items) 74 63 18% 187 203 (8%)
Exceptional Items (net of tax) (25) (30) 16% (28) (104) 73%
Profit after tax (after exceptional items) 116 103 13% 261 331 (21%)
Non Controlling Interest 21 13 70% 55 26 113%
Net Income (after NCI) 95 90 5% 206 305 (32%)
Capex 188 150 25% 403 396 2%
Operating Free Cash Flow (EBITDA - Capex) 298 249 20% 894 722 24%
Total Capital Employed 6,811 6,595 3% 6,811 6,595 3%
Particulars
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2.1.2 Consolidated Summarized Statement of Operations – (in Constant Currency)
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 1,038 845 23% 2,857 2,408 19%
EBITDA 487 380 28% 1,300 1,061 23%
EBITDA / Revenue 46.9% 44.9% 2.0 pp 45.5% 44.1% 1.4 pp
EBIT 309 231 34% 789 622 27%
Capex 188 150 25% 403 396 2%
Operating Free Cash Flow (EBITDA - Capex) 299 230 30% 897 665 35%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
2.2 Consolidated - Summary of Statement of Financial Position (in Reported Currency)
Amount in US$ Mn
As at As at
Dec 31, 2020 Mar 31, 2020
Assets
Non-current assets 7,932 7,654
Current assets 1,965 1,671
Total assets 9,897 9,325
Liabilities
Current liabilities 3,494 2,488
Non-current liabilities 3,110 3,556
Total liabilities 6,604 6,044
Net current liability (1,529) (817)
Net Assets 3,293 3,281
Equity
Equity attributable to ow ners of the company 3,362 3,388
Non-controlling interests ('NCI') (69) (107)
Total equity 3,293 3,281
Total Equity and liabilities 9,897 9,325
Particulars
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SECTION 3
SEGMENT WISE – SUMMARY OF FINANCIAL STATEMENTS Segmental reporting includes all businesses of that geography.
3.1 Summarized Statement of Operations
3.1.1 Nigeria In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 412 355 16% 1,130 995 13%
EBITDA 221 194 14% 608 535 14%
EBITDA / Revenue 53.8% 54.7% -0.9 pp 53.8% 53.7% 0.1 pp
EBIT 159 146 9% 431 398 8%
Capex 81 64 26% 178 180 (1%)
Operating Free Cash Flow
(EBITDA - Capex)140 130 8% 430 355 21%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 414 334 24% 1,136 934 22%
EBITDA 223 183 22% 611 502 22%
EBITDA / Revenue 53.8% 54.7% -0.9 pp 53.8% 53.7% 0.1 pp
EBIT 160 138 17% 433 373 16%
Capex 81 64 26% 178 180 (1%)
Operating Free Cash Flow
(EBITDA - Capex)142 119 20% 432 322 34%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 8 of 60
3.1.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 364 313 16% 1,023 891 15%
EBITDA 170 127 34% 463 360 29%
EBITDA / Revenue 46.8% 40.5% 6.2 pp 45.2% 40.4% 4.8 pp
EBIT 113 70 61% 297 186 60%
Capex 87 61 43% 168 121 39%
Operating Free Cash Flow
(EBITDA - Capex)83 66 26% 295 239 23%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 374 297 26% 1,038 842 23%
EBITDA 174 120 46% 467 337 39%
EBITDA / Revenue 46.5% 40.2% 6.3 pp 45.0% 40.0% 5.0 pp
EBIT 115 65 76% 299 171 75%
Capex 87 61 43% 168 121 39%
Operating Free Cash Flow
(EBITDA - Capex)87 59 48% 300 216 39%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 9 of 60
3.1.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 259 218 19% 704 644 9%
EBITDA 108 82 32% 254 222 15%
EBITDA / Revenue 41.7% 37.5% 4.2 pp 36.1% 34.5% 1.7 pp
EBIT 51 32 58% 98 79 24%
Capex 20 24 (19%) 56 93 (40%)
Operating Free Cash Flow
(EBITDA - Capex)88 57 54% 198 129 54.1%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 249 217 15% 690 639 8%
EBITDA 104 81 28% 249 221 13%
EBITDA / Revenue 41.8% 37.5% 4.3 pp 36.1% 34.5% 1.6 pp
EBIT 49 32 54% 96 79 22%
Capex 20 24 (19%) 56 93 (40%)
Operating Free Cash Flow
(EBITDA - Capex)85 57 48% 194 128 52%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 10 of 60
3.2 Segment Wise Contribution (in Constant Currency)
Quarter Ended:
Amount in US$ Mn, except ratios
Quarter Ended Dec-20
Revenue % of Total EBITDA % of Total Capex % of Total
Nigeria 414 40% 223 46% 81 43%
East Africa 374 36% 174 36% 87 46%
Francophone Africa 249 24% 104 21% 20 11%
Total before Elimnation/Others 1,038 100% 501 103% 187 100%
Eliminations / Others 0 0% (14) (3%) 0 0%
Total 1,038 100% 487 100% 188 100%
Region
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Nine Months Ended:
Amount in US$ Mn, except ratios
Nine Months Ended Dec-20
Revenue % of Total EBITDA % of Total Capex % of Total
Nigeria 1,136 40% 611 47% 178 44%
East Africa 1,038 36% 467 36% 168 42%
Francophone Africa 690 24% 249 19% 56 14%
Total before Elimnation/Others 2,864 100% 1,328 102% 402 100%
Eliminations / Others (7) (0%) (28) (2%) 1 0%
Total 2,857 100% 1,300 100% 403 100%
Region
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 11 of 60
SECTION 4
PRODUCT WISE – SUMMARY OF FINANCIAL STATEMENTS
4.1 Mobile Services- Summarized Statement of Operations
4.1.1 Consolidated Summarized Statement of Operations In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 948 826 15% 2,637 2,366 11%
EBITDA 446 363 23% 1,183 1,006 18%
EBITDA / Revenue 47.1% 43.9% 3.2 pp 44.9% 42.5% 2.3 pp
EBIT 271 210 29% 691 556 24%
Capex 184 145 27% 395 386 2%
Operating Free Cash Flow
(EBITDA - Capex)262 217 21% 788 620 27%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 951 791 20% 2,643 2,259 17%
EBITDA 447 345 30% 1,186 954 24%
EBITDA / Revenue 47.1% 43.6% 3.5 pp 44.9% 42.2% 2.7 pp
EBIT 272 198 38% 693 522 33%
Capex 184 145 27% 395 386 2%
Operating Free Cash Flow
(EBITDA - Capex)263 200 32% 791 567 39%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 12 of 60
4.1.2 Nigeria In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 412 354 16% 1,129 991 14%
EBITDA 222 194 14% 608 531 14%
EBITDA / Revenue 53.8% 54.7% -0.8 pp 53.8% 53.6% 0.2 pp
EBIT 159 146 9% 431 394 9%
Capex 81 64 26% 178 180 (1%)
Operating Free Cash Flow
(EBITDA - Capex)141 130 8% 430 352 22%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 414 333 24% 1,135 930 22%
EBITDA 223 182 22% 611 499 23%
EBITDA / Revenue 53.8% 54.7% -0.8 pp 53.8% 53.6% 0.2 pp
EBIT 161 137 17% 433 370 17%
Capex 81 64 26% 178 180 (1%)
Operating Free Cash Flow
(EBITDA - Capex)142 118 20% 433 319 36%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 13 of 60
4.1.3 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda) In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 301 272 11% 863 779 11%
EBITDA 132 101 31% 363 291 25%
EBITDA / Revenue 43.9% 37.1% 6.8 pp 42.1% 37.3% 4.7 pp
EBIT 76 45 68% 201 120 68%
Capex 84 57 47% 162 115 41%
Operating Free Cash Flow
(EBITDA - Capex)48 44 10% 201 176 14%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 310 258 20% 876 736 19%
EBITDA 135 95 42% 367 272 35%
EBITDA / Revenue 43.6% 36.8% 6.9 pp 41.9% 36.9% 5.0 pp
EBIT 78 42 85% 203 110 85%
Capex 84 57 47% 162 115 41%
Operating Free Cash Flow
(EBITDA - Capex)51 38 35% 205 157 31%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 14 of 60
4.1.4 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles) In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 238 202 18% 652 600 9%
EBITDA 92 68 36% 214 184 16.0%
EBITDA / Revenue 38.8% 33.7% 5.1 pp 32.8% 30.7% 2.1 pp
EBIT 35 18 91% 58 42 39%
Capex 19 24 (21%) 55 92 (41%)
Operating Free Cash Flow
(EBITDA - Capex)73 44 67% 159 92 72%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 229 201 14% 639 596 7%
EBITDA 89 68 32% 210 183 14%
EBITDA / Revenue 38.9% 33.7% 5.2 pp 32.8% 30.8% 2.0 pp
EBIT 34 18 85% 57 42 36%
Capex 19 24 (21%) 55 92 (41%)
Operating Free Cash Flow
(EBITDA - Capex)70 43 61% 155 92 69%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 15 of 60
4.2 Mobile Services - Segment Wise Contribution (in Constant Currency) Quarter Ended:
Amount in US$ Mn, except ratios
Quarter Ended Dec-20
Revenue % of Total EBITDA % of Total Capex % of Total
Nigeria 414 44% 223 50% 81 44%
East Africa 310 33% 135 30% 84 46%
Francophone Africa 229 24% 89 20% 19 10%
Total before Elimnation/Others 953 100% 447 100% 184 100%
Eliminations / Others (3) (0%) 0 0% 0 0%
Total 951 100% 447 100% 184 100%
Region
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Nine Months Ended:
Amount in US$ Mn, except ratios
Nine Months Ended Dec-20
Revenue % of Total EBITDA % of Total Capex % of Total
Nigeria 1,135 43% 611 52% 178 45%
East Africa 876 33% 367 31% 162 41%
Francophone Africa 639 24% 210 18% 55 14%
Total before Elimnation/Others 2,650 100% 1,188 100% 395 100%
Eliminations / Others (7) (0%) (2) (0%) 0 0%
Total 2,643 100% 1,186 100% 395 100%
Region
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 16 of 60
4.3 Mobile Money - Summarized Statement of Operations
4.3.1 Consolidated Summarized Statement of Operations In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 110 82 34% 291 228 28%
EBITDA 54 40 33% 142 110 28%
EBITDA / Revenue 48.7% 49.0% -0.2 pp 48.7% 48.5% 0.2 pp
EBIT 52 39 34% 135 106 27%
Capex 3 4 (19%) 7 7 (1%)
Operating Free Cash Flow
(EBITDA - Capex)51 36 39% 135 103 30%
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Revenue 111 79 41% 292 217 34%
EBITDA 54 39 40% 142 106 34%
EBITDA / Revenue 48.6% 49.2% -0.5 pp 48.6% 48.6% -0.1 pp
EBIT 52 37 40% 135 102 33%
Capex 3 4 (19%) 7 7 (1%)
Operating Free Cash Flow
(EBITDA - Capex)51 35 45% 135 99 37%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 17 of 60
4.4 Product Wise Contribution (in Constant Currency)
Quarter Ended:
Amount in US$ Mn, except ratios
Quarter Ended Dec-20
Revenue % of Total EBITDA % of Total Capex % of Total
Mobile Services 951 92% 447 92% 184 98%
Mobile Money 111 11% 54 11% 3 2%
Total before Elimnation/Others 1,062 102% 501 103% 187 100%
Eliminations / Others (23) (2%) (14) (3%) 1 0%
Total 1,038 100% 487 100% 188 100%
Products
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Nine Months Ended:
Amount in US$ Mn, except ratios
Nine Months Ended Dec-20
Revenue % of Total EBITDA % of Total Capex % of Total
Mobile Services 2,643 93% 1,186 91% 395 98%
Mobile Money 292 10% 142 11% 7 2%
Total before Elimnation/Others 2,935 103% 1,328 102% 402 100%
Eliminations / Others (78) (3%) (28) (2%) 1 0%
Total 2,857 100% 1,300 100% 403 100%
Products
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 18 of 60
SECTION 5
OPERATING HIGHLIGHTS
The financial figures used for computing ARPU & Revenue per Site are based on Constant Currency. 5.1 Operational Performance (Quarter Ended)
5.1.1 Consolidated Operational Performance
Parameters Unit Dec-20 Sep-20Q-on-Q
ChangeDec-19
Y-on-Y
Change
Customer Base 000's 118,903 116,371 2.2% 107,140 11.0%
Net Additions 000's 2,532 4,910 (48.4%) 3,258 (22.3%)
Monthly Churn % 5.0% 5.3% -0.3 pp 5.2% -0.2 pp
Average Revenue Per User (ARPU) US$ 2.9 2.8 3.7% 2.7 9.3%
Voice
Voice Revenue US$ Mn 566 517 9.4% 484 16.9%
Minutes on the netw ork Mn 85,651 80,375 6.6% 65,086 31.6%
Voice Average Revenue Per User (ARPU) US$ 1.6 1.5 5.3% 1.5 4.0%
Voice Usage per customer min 241 235 2.5% 206 17.1%
Data
Data Revenue US$ Mn 295 283 4.3% 232 27.0%
Data Customer Base 000's 40,624 39,596 2.6% 32,887 23.5%
As % of Customer Base % 34.2% 34.0% 0.1 pp 30.7% 3.5 pp
Total MBs on the netw ork Mn MBs 320,568 293,919 9.1% 189,798 68.9%
Data Average Revenue Per User (ARPU) US$ 2.4 2.5 (1.5%) 2.4 1.5%
Data Usage per customer MBs 2,653 2,576 3.0% 1,967 34.9%
M obile M oney
Transaction Value US$ Mn 12,959 11,637 11.4% 8,001 62.0%
Transaction Value per Sub US$ 208 199 4.6% 166 25.9%
Mobile Money Revenue US$ Mn 111 100 11.4% 79 41.1%
Active Customers 000's 21,460 20,120 6.7% 16,634 29.0%
Mobile Money ARPU US$ 1.8 1.7 4.7% 1.6 9.7%
Network and Coverage
Netw ork tow ers Nos 24,693 24,246 447 22,253 2,440
Owned Towers Nos 4,530 4,561 (31) 4,454 76
Leased Towers Nos 20,163 19,685 478 17,799 2,364
Of w hich Mobile Broadband tow ers Nos 22,998 22,250 748 19,133 3,865
Total Mobile Broadband Base stations Nos 72,616 63,705 8,911 43,174 29,442
Data Capacity TB/day 11,448 10,253 11.7% 6,780 68.8%
Revenue Per Site Per Month US$ 14,108 13,408 5.2% 12,718 10.9%
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.
Page 19 of 60
5.2 Nigeria Operational Performance
Parameters Unit Dec-20 Sep-20Q-on-Q
ChangeDec-19
Y-on-Y
Change
Customer Base 000's 44,449 44,054 0.9% 39,855 11.5%
Net Additions 000's 395 1,541 (74.4%) 343 15.3%
Monthly Churn % 5.4% 6.1% -0.8 pp 6.8% -1.4 pp
Average Revenue Per User (ARPU) US$ 3.1 2.9 5.1% 2.8 9.5%
Voice
Voice Revenue US$ Mn 245 217 12.9% 205 19.4%
Minutes on the netw ork Mn 23,578 20,867 13.0% 18,812 25.3%
Voice Average Revenue Per User (ARPU) US$ 1.8 1.7 8.3% 1.7 5.3%
Voice Usage per customer min 174 161 8.5% 158 10.5%
Data
Data Revenue US$ Mn 141 135 4.6% 109 30.2%
Data Customer Base 000's 18,831 19,003 (0.9%) 15,234 23.6%
As % of Customer Base % 42.4% 43.1% -0.8 pp 38.2% 4.1 pp
Total MBs on the netw ork Mn MBs 158,566 147,471 7.5% 96,313 64.6%
Data Average Revenue Per User (ARPU) US$ 2.5 2.5 (2.5%) 2.4 3.3%
Data Usage per customer MBs 2,749 2,743 0.2% 2,105 30.6%
Network and Coverage
Netw ork tow ers Nos 10,588 10,347 241 8,924 1,664
Owned Towers Nos 203 199 4 177 26
Leased Towers Nos 10,385 10,148 237 8,747 1,638
Of which Mobile Broadband towers Nos 10,376 10,002 374 8,093 2,283
Total Mobile Broadband Base stations Nos 37,098 30,091 7,007 13,865 23,233
Data Capacity TB/day 6,115 5,245 16.6% 2,486 145.9%
Revenue Per Site Per Month US$ 13,179 12,500 5.4% 12,491 5.5%
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.
Page 20 of 60
5.3 East Africa Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)
Parameters Unit Dec-20 Sep-20Q-on-Q
ChangeDec-19
Y-on-Y
Change
Customer Base 000's 52,612 51,265 2.6% 47,366 11.1%
Net Additions 000's 1,348 2,508 (46.3%) 2,359 (42.9%)
Monthly Churn % 4.6% 4.5% 0.1 pp 3.8% 0.7 pp
Average Revenue Per User (ARPU) US$ 2.4 2.4 0.9% 2.2 11.5%
Voice
Voice Revenue US$ Mn 179 171 4.5% 149 20.4%
Minutes on the netw ork Mn 52,988 51,335 3.2% 39,177 35.3%
Voice Average Revenue Per User (ARPU) US$ 1.1 1.1 0.8% 1.1 6.5%
Voice Usage per customer min 340 342 (0.4%) 284 19.7%
Data
Data Revenue US$ Mn 90 89 1.1% 77 17.2%
Data Customer Base 000's 15,638 14,924 4.8% 12,903 21.2%
As % of Customer Base % 29.7% 29.1% 0.6 pp 27.2% 2.5 pp
Total MBs on the netw ork Mn MBs 125,879 115,048 9.4% 74,285 69.5%
Data Average Revenue Per User (ARPU) US$ 2.0 2.0 (2.5%) 2.1 (3.5%)
Data Usage per customer MBs 2,776 2,632 5.5% 1,991 39.4%
Network and Coverage
Netw ork tow ers Nos 9,365 9,193 172 8,838 527
Owned Towers Nos 2,492 2,544 (52) 2,475 17
Leased Towers Nos 6,873 6,649 224 6,363 510
Of which Mobile Broadband towers Nos 8,260 8,039 221 7,542 718
Total Mobile Broadband Base stations Nos 24,200 22,567 1,633 20,340 3,860
Data Capacity TB/day 3,703 3,426 8.1% 3,009 23.1%
Revenue Per Site Per Month US$ 13,405 13,025 2.9% 11,261 19.0%
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.
Page 21 of 60
5.4 Francophone Africa Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)
Parameters Unit Dec-20 Sep-20Q-on-Q
ChangeDec-19
Y-on-Y
Change
Customer Base 000's 21,842 21,052 3.8% 19,919 9.7%
Net Additions 000's 790 862 (8.4%) 557 41.8%
Monthly Churn % 5.5% 5.5% 0.0 pp 5.4% 0.1 pp
Average Revenue Per User (ARPU) US$ 3.9 3.7 4.3% 3.7 5.4%
Voice
Voice Revenue US$ Mn 140 131 6.8% 133 5.6%
Minutes on the netw ork Mn 9,084 8,173 11.2% 7,097 28.0%
Voice Average Revenue Per User (ARPU) US$ 2.2 2.1 2.7% 2.3 (3.2%)
Voice Usage per customer min 141 132 6.8% 121 17.3%
Data
Data Revenue US$ Mn 63 59 8.4% 47 35.8%
Data Customer Base 000's 6,155 5,669 8.6% 4,749 29.6%
As % of Customer Base % 28.2% 26.9% 1.3 pp 23.8% 4.3 pp
Total MBs on the netw ork Mn MBs 36,124 31,400 15.0% 19,200 88.1%
Data Average Revenue Per User (ARPU) US$ 3.6 3.5 1.2% 3.5 2.4%
Data Usage per customer MBs 2,028 1,889 7.4% 1,429 41.9%
Network and Coverage
Netw ork tow ers Nos 4,740 4,706 34 4,491 249
Owned Towers Nos 1,835 1,818 17 1,802 33
Leased Towers Nos 2,905 2,888 17 2,689 216
Of which Mobile Broadband towers Nos 4,362 4,209 153 3,498 864
Total Mobile Broadband Base stations Nos 11,318 11,047 271 8,969 2,349
Data Capacity TB/day 1,630 1,582 3.1% 1,285 26.8%
Revenue Per Site Per Month US$ 17,547 16,363 7.2% 16,255 7.9%
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.
.
Page 22 of 60
SECTION 6
MANAGEMENT DISCUSSION AND ANALYSIS
6.1 Reporting Methodology
• The results for the nine months ended 31 December 2020
are unaudited and in the opinion of management, include all
adjustments necessary for the fair presentation of the results
of the same period. The financial information has been
prepared based on International Accounting Standard 34
(IAS 34) and apply the same accounting policies,
presentation and methods of calculation as those followed in
the preparation of the Group’s annual consolidated financial
statements for the year ended 31 March 2020 except to the
extent required/ prescribed by IAS 34. This report should be
read in conjunction with audited consolidated financial
statements and related notes for the year ended 31 March
2020. The comparative information has been drawn based
on Airtel Africa plc’s Audited Consolidated Financial
Statements for the year ended 31 March 2020 prepared
under International Financial Reporting Standard (IFRS).
• The information, apart from the extract of the Financial
Statements in Section 7, is on underlying basis and
exceptional items are shown separately. This enables an
organic comparison of results with past periods.
6.2 Key company developments
Strategic asset monetisation and investment opportunities
We are continuing to look at strategic asset monetisation and
investment opportunities for the Group. We are actively pursuing
the sale of the remaining owned tower sites that sit across several
of our operating countries and the Group is in discussions with
various potential investors in relation to possible minority
investments into Airtel Money. Discussions are ongoing between
the parties and there can be no certainty that a transaction will be
concluded or as to the final terms of any transaction.
Licence renewal in Nigeria
In January 2021, Airtel Networks Limited (“Airtel Nigeria”),
announced that its application for renewal of the spectrum licences
in the 900MHz and 1800MHz bands had been approved by the
Nigerian Communications Commission (“NCC”). Pursuant to
Section 43 of the Nigerian Communications Act, 2003 and
Condition 20 of the Unified Access Service Licence (UASL), Airtel
Nigeria had applied to renew its spectrum licences in the 900MHz
and 1800MHz bands which would otherwise expire on 30
November 2021.
Following the application, the NCC offered Airtel Nigeria the
opportunity to renew its spectrum licences in the 900MHz &
1800MHz bands for a period of ten years, with effect from 1
December 2021 until 30 November 2031, which Airtel Nigeria
accepted.
Under the terms of the spectrum licences Airtel Nigeria paid
71.611 billion naira ($189 million) in respect of the licence renewal
fees.
New Licence in Uganda
In December, Airtel Uganda Limited was issued with a National
Telecom Operator Licence following a period of negotiation and
transition to a new Licensing Regime.
The new licence is with effect from 1 July 2020 and is for a period
of 20 years. Airtel Uganda will retain all of its current spectrum
subject to the law and terms of assignment. The scope of services
will be the provision of basic telecommunication services,
infrastructure services, and value-added telecommunication
services. In addition, Airtel Uganda commits to achieving coverage
of 90% of the geographical boundary of Uganda within five years
of the effective date of the licence, with a minimum obligation of
providing voice and data services.
Under the terms of the licence Airtel Uganda has paid $74.6 Mn
which includes VAT of $11.4 Mn.
New SIM registration rules in Nigeria
Following a directive issued by the Nigerian Communications
Commission on 15 December 2020 to all Nigerian telecom
operators, Airtel Nigeria is working with the government to ensure
that all our subscribers provide their valid National Identification
Numbers (NINs) to update SIM registration records.
New customer acquisitions are currently barred until significant
progress is made on linking the current active base with verified
NINs. The deadline for customers to register their NIN with their
SIM has moved from a provisional date of 30 December 2020 in
the initial directive in order to accommodate the logistical
challenges involved. The latest deadline for registration is currently
9 February 2021. We have made significant progress on capturing
existing NINs and building the database in collaboration with
National Identity Management Commission (NIMC). To date, out
of Airtel Nigeria’s 44.4 million customers, we have collated NIN
information for 21 million mobile customers (47%). To complete
the registration process we still need to verify the NIN information
we have received from our subscribers with the NIMC. This
requires improved connectivity with the NIMC database which is
currently being developed for all the Nigerian mobile operators.
We have also opened enrolment centres in collaboration with the
NIMC to facilitate customers obtaining NINs for roughly half of the
population that do not currently have a NIN. We continue to work
closely with the government to ensure full compliance.
We anticipate that this will affect customer growth in Nigeria in
Q4’21, but the potential overall impact remains uncertain.
Page 23 of 60
Dividend
In October 2020, the Board approved a new progressive dividend
policy during the period as a result of the continued strong
business performance, significant opportunities to invest in future
growth and the aim to continue to reduce leverage. The newly
adopted dividend policy aims to grow the dividend annually by a
mid to high single digit percentage from a base of 4 cents per share
for FY 2021, until reported leverage (calculated as net debt to
EBITDA) falls below 2.0x. At the point when reported leverage
(calculated as net debt to EBITDA) is below 2.0x, the Board will
reassess the dividend policy in light of the growth outlook for the
Group. On 28 October 2020, in line with the dividend policy, the
Board declared an interim dividend of 1.5 cents per ordinary share
which was paid on 11 December 2020.
Directorate change
On 27 October 2020 we announced the appointment of Kelly
Bayer Rosmarin as a non-executive director with immediate effect.
Ms. Bayer Rosmarin's appointment was by nomination of the
controlling shareholder pursuant to the terms of the relationship
agreement dated 17 June 2019 between the Company, Bharti
Airtel, Airtel Africa Mauritius Limited, the majority shareholder and
an indirect subsidiary of Bharti Airtel, and Bharti Telecom. Ms.
Bayer Rosmarin replaced Arthur Lang who stepped down as a
non-executive director on the same date.
Ms. Bayer Rosmarin is currently CEO of Singtel Optus and
Consumer Australia. She was previously with Commonwealth
Bank of Australia, where she held several senior positions and
varied portfolios, before being appointed as Group Executive of
Institutional Banking and Markets. Ms Bayer Rosmarin is
recognised for leveraging technology, data and analytics to
develop leading customer services and experience. Ms. Bayer
Rosmarin was named in the Top 10 Businesswomen in Australia
and the Top 25 Women in Asia Pacific Finance and holds a variety
of Board and advisory responsibilities.
Ms. Bayer Rosmarin has, since February 2019, served as an
Independent non-executive director on the Board of OpenPay,
listed on the Australian Securities Exchange, and will continue in
that role. Openpay is a payments technology company based in
Australia.
Additional spectrum
In June 2020, Airtel Malawi plc was allocated 10 MHz of spectrum
in the 2600 band. In October, additional spectrum of 10 MHz in the
2600 band and 5 MHz in the 1800 band was allocated to Airtel
Uganda. In December, Airtel Chad received 5 MHz of spectrum in
the 900 band and Airtel Zambia received 10 MHz in the 800 band.
Abandonment of merger of Airtel Networks Kenya Limited
with Telkom Kenya Limited
In August 2020, Airtel Africa plc announced that its subsidiary
Airtel Networks Kenya Limited ("Airtel Kenya") and Telkom Kenya
Limited ("Telkom") had decided to no longer pursue completion of
the M&A transaction. The transaction was announced in February
2019 and was subject to the satisfaction of various conditions
precedent, including regulatory approvals. Despite Airtel Africa plc
and Telkom’s respective endeavours to reach a successful
closure, the transaction had gone through a very lengthy process
which led the parties to reconsider their stance.
Partnership with UNICEF
In May 2020, Airtel Africa announced a partnership with UNICEF
aimed at providing children with access to remote learning and
enabling access to cash assistance for their families via mobile
cash transfers. Under this partnership, UNICEF and Airtel Africa
will use mobile technology to benefit an estimated 133 million
school age children currently affected by school closures in 13
countries across sub-Saharan Africa during the Covid-19
pandemic.
Mobile money
(a) Partnership with remittance leading institutions
Airtel Africa entered into several strategic partnerships with
MoneyGram, Mukuru and WorldRemit. Through these
partnerships, more than 20 million Airtel Money customers in 12
countries can transfer and receive funds across the globe directly
from and into their mobile money wallets on their phone. Mobile
money service alliances with these leading international money
transfer or remittance service providers will extensively enhance
customer access to the digital world.
(b) Partnership with Standard Chartered Bank
In August 2020, Airtel Africa announced a strategic partnership
with Standard Chartered Bank, a leading international banking
group, to drive financial inclusion across key markets in Africa by
providing customers with increased access to mobile financial
services. Standard Chartered and Airtel Africa work together to co-
create new, innovative products aimed at enhancing the
accessibility of financial services and ultimately, better serve
people across Africa. In line with this, Airtel Money's customers will
be able to make real-time online deposits and withdrawals from
Standard Chartered bank accounts, receive international money
transfers directly to their wallets, and access savings products
amongst other services.
(c) Partnership with Mastercard, Samsung and Asante
In September 2020, Airtel Africa announced an expansion of its
partnership with Mastercard by launching a Pay-on-Demand
payments platform to drive the digital economy across Africa. This
Pay-on-Demand platform enables safe, secure, and convenient
consumer financing via Samsung devices with an embedded Knox
security platform, through Airtel Africa’s network. The partnership
facilitates usage-based payments and builds creditworthiness.
These partnerships align with the Group’s strategy of expanding
the range and depth of Airtel Money offerings to drive customer
growth and penetration.
Page 24 of 60
6.3 Results of Operations
The financial results presented in this section are compiled based on the consolidated financial statements prepared in accordance with International Financial
Reporting Standards (IFRS) and the underlying information.
Key Highlights – For Nine-month period ended on December 31, 2020
• Reported revenue increased by 13.8% to $2,870 Mn with Q3'21 reported revenue growth of 19.5%.
• Constant currency underlying revenue growth was 18.6%, with Q3'21 growth of 22.8%. Growth for the nine months was recorded across all regions: Nigeria up 21.6%, East Africa up 23.4% and Francophone Africa up 8.0%; and across all services, with voice revenue up 10.4%, data up 31.1% and mobile money up 34.2%.
• EBITDA for the nine months was $1,297 Mn, up 16% in reported currency while constant currency EBITDA growth was 22.5%.
• EBITDA margin for the nine months was 45.5%, up by 1.2pp (up 1.4pp in constant currency). Q3'21 EBITDA margin was 46.9%.
• Operating profit increased by 21.8% to $800 Mn in reported currency, and by 29.9% in constant currency.
• Free cash flow was $466 Mn, up 20% compared to the same period last year.
• Basic EPS was 5.5 cents, down 36.5%, largely due to prior year exceptional items and a one-off derivative gain. Excluding these, basic EPS rose by 19.8%. EPS before exceptional items was 5.0 cents.
• Customer base up 11.0% to 118.9 million, with increased penetration across mobile data (customer base up 23.5%) and mobile money services (customer base up 29.0%). 2.5 million customers were added in Q3'21.
Key Highlights – For the Quarter ended December 31, 2020
• Revenue in constant currency increased by 22.8% to $ 1,038 Mn.
• Revenue growth of 22.8% in constant currency was driven by growth across all regions: Nigeria up 24.1%, East Africa up 26.0% and
Francophone Africa up 15.0%.
• Growth was broad based across all services with revenue in Voice, Data and Mobile Money up by 16.9%, 27.0% and 41.1% respectively.
• EBITDA in constant currency was $ 487 Mn, up 28.3%.
• EBITDA margin in constant currency was 46.9%, an increase of 2.0pp.
Results for the Nine-month period ended on December 31, 2020
6.4.1 Airtel Africa Consolidated
These results demonstrate that Airtel Africa is a highly resilient
business with an effective strategy, delivering strong growth in its
customer base and revenue, and expansion of its EBITDA margin.
This performance continues to be underpinned by a strong focus
on the execution of our strategy which is capturing growth
opportunities in a fast-growing region that is vastly
underpenetrated in terms of both mobile and banking services. As
a result, we were able to deliver double-digit constant currency
mobile services revenue growth for the nine-months of 17.0%
(11.5% on a reported basis), with 34.2% mobile money revenue
growth (27.8% on a reported basis).
Basic EPS was 5.5 cents, down by 36.5%, as a result of higher
other finance costs due to a $47 Mn derivative gain in the prior
period, an increase in tax charges due to higher operating profit
and withholding tax on dividends, higher non-controlling interest
and the recognition in the prior period of one-off gain of $72 Mn
related to the expired indemnity to certain pre-IPO investors which
was accounted for as an exceptional item. Excluding exceptional
items and the one-off $47 Mn derivative gain, basic EPS would be
up 19.8%. Non-controlling interest more than doubled largely as a
result of higher profit in OPCOs with minority shareholdings
including Airtel Nigeria, Airtel Tanzania, Airtel Niger and Airtel
Malawi.
Reported Group revenue increased by 13.8%, largely driven by
18.6% of underlying constant currency growth partially offset by
currency devaluations, mainly in the Nigerian naira (7.9%),
Zambian kwacha (46.6%) and Kenyan shilling (9%), partially offset
by appreciation in the Central African franc (8.7%). Reported
revenue also benefitted from one-time exceptional revenue of $20
Mn relating to a settlement in Niger.
The underlying constant currency growth was largely driven by
customer base growth of 11.0%, to 118.9 million, and ARPU
growth of 6.1%. Revenue growth was recorded across all regions,
with Nigeria up 21.6%, East Africa up 23.4% and Francophone
Africa up 8.0%. Double-digit revenue growth was also achieved
across all service segments, with voice up 10.4%, data up 31.1%
and mobile money up 34.2% in constant currency.
Q3’21 reported revenue growth accelerated to 19.5% (benefiting
from the same $20 Mn exceptional revenue), while underlying
constant currency revenue growth was 22.8%.
Operating profit amounted to $800 Mn, up 21.8% in reported
currency, as a result of strong revenue growth and lower operating
expenditures in proportion to revenue. Operating profit in constant
currency grew by almost 30%.
Net finance costs increased by $93 Mn, driven by higher other
finance costs which more than offset the reduced interest costs of
$9.0m as a result of lower gross debt. Increase in other finance
costs was primarily due to a higher forex impact of $38 Mn ($81
Mn in current period vs $43 Mn in previous period) and one-off
derivative gains of $47 Mn in the previous period.
Page 25 of 60
Total tax charges for the period amounted to $221 Mn as
compared to $170 Mn in the comparable period last year. This was
due to higher operating profit and withholding tax on dividends
declared. The prior period also benefited from recognition of higher
deferred tax credit of $43 Mn in DRC as against $14 Mn in
Tanzania during the nine-month period ended 31 December 2020.
Profit after tax was $261 Mn, down by 21.1%. This was largely a
result of the prior year period recognition of a one-off gain of $72
Mn related to the expired indemnity to certain pre-IPO investors, a
higher deferred tax credit of $29 Mn in the previous period, as well
as higher finance costs and tax in the current period. Excluding the
benefit of exceptional items and one-off derivative gain of $47 Mn
in the prior period, profit after tax has increased by 30.1%.
Basic EPS was 5.5 cents, down 36.5%. This was a result of higher
other finance costs, due to a $47 Mn derivative gain in the prior
period, an increase in tax charges due to higher operating profit
and withholding tax on dividend, higher non-controlling interest,
and the recognition in the prior period of a one-off gain of $72 Mn
related to the expired indemnity to certain pre-IPO investors which
was accounted for as an exceptional item. Excluding exceptional
items and the one-off $47 Mn derivative gain, basic EPS would be
up 19.8%. Non-controlling interest increased by $29 Mn (113%),
largely as a result of higher profit in OPCOs with minority
shareholdings, including Airtel Nigeria, Airtel Tanzania, Airtel
Niger and Airtel Malawi.
Alternative performance measures
EBITDA for the nine months was $1,297 Mn, up 16% year on year
in reported currency. In constant currency EBITDA grew 22.5%.
This was driven by revenue growth of 18.6% and improved
efficiency in operating expenses. EBITDA margin was 45.5%, an
improvement of 1.2pp in reported currency and 1.4 pp in constant
currency.
Foreign exchange had an adverse impact of $122 Mn on constant
currency revenue and $60 Mn on EBITDA, largely driven by
devaluation of the Nigerian naira, Zambian kwacha and Kenya
shilling, partially offset by appreciation in the Central African Franc
(CFA).
Q3’21 EBITDA margin was 46.9%, an improvement of 1.7pp in
reported currency and 2.0pp in constant currency.
The effective tax rate was 46% compared to 50% in the previous
period, largely as a result of the profit mix change amongst the
operating entities (“OPCOs”). The effective tax rate is higher than
the weighted average statutory tax rate of approximately 33%,
largely due to the profit mix between various OPCOs and higher
withholding tax on dividend declared. The adjusted effective tax
rate was 43% compared to 39% in the previous period, largely as
a result of recognition of higher deferred tax credit of $43m in DRC
in the prior period as against $14 Mn in Tanzania during the nine-
month period ended 31 December 2020.
An exceptional gain of $28 Mn in December 2020 consisted of (i)
a one-time benefit of $20 Mn on account of a settlement in Niger
(Airtel Niger signed an IRU (Indefeasible Right of Use) deal with a
Niger telecommunications operator, and as part of the commercial
agreement the receivables from the operator for prior periods have
been settled and recognised as an exceptional item) (ii) a deferred
tax credit in Tanzania amounting to $14 Mn, partially offset by (iii)
one-off costs of $6.7 Mn in Francophone Africa. Exceptional items
for the nine-month period ended 31 December 2019 mainly
consisted of a $72 Mn gain related to the expired indemnity to
certain pre-IPO investors and a deferred tax credit of $43 Mn in
DRC.
Free cash flow was $466 Mn, up by 20% largely due to higher
EBITDA, with capex broadly stable. This was partially offset by an
increase of $71 Mn in cash tax as a result of higher operating profit.
EPS before exceptional items was 5.0 cents, down by 13.7%, as
a result of higher other finance costs due to the recognition of a
$47 Mn derivative gain in the prior period, higher non-controlling
interest, and an increase in tax charges due to the higher operating
profit and withholding tax on the dividend. Excluding the one-time
derivative gain of $47 Mn, restated EPS grew 19.8%. Non-
controlling interest increased by $29 Mn (113%), largely as a result
of higher profit in OPCOs with minority shareholdings including
Airtel Nigeria, Airtel Tanzania, Airtel Niger and Airtel Malawi.
6.4.2 Net Debt
Net debt to EBITDA improved to 2.1x, as the increase in EBITDA
more than offset the increase in net debt.
6.4.3 Segment Wise – Africa
6.4.3.1 Nigeria
Revenue in reported currency grew by 13.5%, while in constant
currency revenue grew by 21.6% as a result of Nigerian naira
devaluation by 7.9% (YoY). Revenue growth in Q3’21 improved to
15.9% in reported currency, and to 24.1% in constant currency.
Voice revenue continued to grow by double digit to $657 Mn in the
nine-month period, up by 14.2% in constant currency. Voice
revenue growth was driven by the combination of growing
customer base and ARPU. The customer base increased by
11.5%, driven by continued expansion of our distribution network
and network infrastructure. Voice ARPU growth of 1.4% was a
result of increased voice usage per customer, up 12.4%. Q3’21
voice revenue growth accelerated to 19.4% in constant currency,
mainly driven by voice ARPU growth.
Data revenue growth of 35.2% in constant currency was driven by
23.6% growth in data customers and the 12.2% growth in data
ARPU. Data customer penetration was up by 4.1pp from the
previous period and reached 42.4% as of December 2020. The
data customer base growth of 23.6% was a result of expansion of
the 4G network, with 82% of total sites now on 4G. Data usage per
customer increased by 49.2% and data revenue accounted for
35.1% of total revenue in the nine-month period, up by 3.5pp from
31.6% in previous period.
EBITDA grew by 13.6% in reported currency, with constant
currency growth of 21.7%. EBITDA margin during the period was
almost flat compared with the previous period. The slight drop in
Q3 EBITDA margin is due to increased operating expenses as a
result of higher new sites rollout (1600+ additional sites during the
period).
Page 26 of 60
Capital expenditure was broadly stable at $178 Mn. Operating free
cash flow was $430 Mn, up by 34.2%, largely as a result of the
growth in EBITDA.
6.4.3.2 East Africa
Performance in East Africa continued to be strong with 14.9%
revenue growth in reported currency and 23.4% in constant
currency. Revenue growth in Q3’21 accelerated to 16.3% in
reported currency, and 26% in constant currency, supported by
growth across all key business segments, but particularly mobile
money. Constant currency revenue growth was partially offset by
currency devaluation, mainly in Zambia and Kenya.
Voice revenue amounted to $486 Mn, with growth of 7.3% in
reported currency and 15.4% in constant currency, driven by
customer base growth of 11.1% and voice ARPU growth of 2%.
Total minutes on the network were up 35.7%, led by a 20%
increase in voice usage per customer and customer base growth.
In Q3’21 voice revenue was up 11.1% in reported currency and
20.4% in constant currency.
Data revenue was $262 Mn, up 25.1% year on year in constant
currency. This was driven by data customer base growth of 21.2%
and a data ARPU increase of 2%. Growth was recorded across all
OPCOs, driven by expansion of our network infrastructure, with
72% of sites now on 4G, compared with 64% during the previous
period. Data usage per customer reached 2.6GB per customer, up
45.4% from 1.8GB per customer in the prior period. Total data
usage on our network grew 78.4% year on year.
During the period “Pay as you Go tariffs” in certain markets were
updated and this resulted in a revenue reallocation of bundled
products of voice and data in such tariffs. On a like for like basis
voice and data revenue growth was 11.1% and 33.8%
respectively.
Mobile money revenue grew 47% in constant currency, largely
from growth in Zambia, Tanzania, Uganda and Malawi. This was
driven by 28.5% customer base growth and 27% growth in the
transaction value per customer, due to expansion of our
distribution network. Mobile money ARPU grew by 15.1% in the
nine-month period. Q3’21 mobile money revenue grew 54.1% with
28.5% growth in the customer base and mobile money ARPU
growth of 20.2% in constant currency.
EBITDA margin was 45.2%, an improvement of 4.8pp in reported
currency and 5.0pp in constant currency, due to accelerated
growth in revenue and efficiency improvement in operating
expenses.
Capital expenditure was $168 Mn, up 39.3% as a result of planned
network expansion. Operating free cash flow was $295 Mn, up by
38.6% due largely to the improvement in EBITDA.
6.4.3.3 Francophone Africa
Performance in Francophone Africa improved strongly, with
reported revenue growth of 9.4% and constant currency growth of
8.0%. Reported currency growth was higher than constant
currency growth due to appreciation in the value of the Central
African and West Africa franc. Performance across the region was
mixed, with revenue growth in Democratic Republic of the Congo
(DRC), Gabon, Niger and Chad partially offset by marginal decline
in a few countries in the region. For Q3’21 revenue growth
accelerated significantly to 18.9% in reported currency and 15.0%
in constant currency.
Voice revenue was almost flat in reported currency for the nine-
month period ended December 2020. However, Q3’21 voice
revenue grew by 9.6% in reported currency and 5.6% in constant
currency. This was driven by customer base growth of 9.7% offset
by a decline in Voice ARPU of 3.2%. The Voice ARPU trend
reflects reductions in interconnect rates in Gabon and Chad and
roaming revenues. Total voice minutes on the network grew by
28% in Q3 year on year.
Data revenue increased by 31.4% in constant currency, driven by
customer growth of 29.6% and data ARPU growth of 1.8%.
Smartphone penetration increased by 4pp and reached 29.3%.
Data usage per customer increased from 1.2GB per customer to
1.9GB per customer. As a result, total data usage more than
doubled and data usage per customer was up 60.7%. The data
customer base growth of 29.6% was due to expansion of our 4G
network, with 59% of total sites now on 4G, and the success of our
“More for More” bundle offerings driving data uptake by customers.
Mobile money revenue for the nine-month period was $79 Mn, with
constant currency growth of 13.9%. This was largely driven by a
32.3% increase in the mobile money customer base supported by
the expansion of our distribution network through more agents,
kiosks and Airtel Money branches.
EBITDA margin was 36.1% during the period, an improvement of
1.6pp in constant currency. Q3’21 EBITDA margin at 41.7%, an
improvement of 4.3pp in constant currency driven by revenue
growth and opex efficiency.
Capital expenditure during the period was $56 Mn. This is almost
half the level of the previous period due to a significant network
modernisation programme last year. Operating free cash flow was
at $198 Mn, up 51.7% as a result of an improvement in EBITDA
and lower capital expenditure.
6.4.4 Product wise Africa
6.4.4.1 Mobile services:
Mobile services revenue increased by 11.5% on a reported basis
and by 17% in constant currency, with both voice and data
revenue contributing to revenue growth.
Voice revenue increased by 5.3% in reported currency and 10.4%
in constant currency, driven by customer base growth of 11% as a
result of the expansion of the distribution network and network
infrastructure, partially offset by a slight decline in voice ARPU by
1.3%. Voice usage per customer increased by 17.4% resulting in
overall minutes growth of 31.3%. In Q3’21 voice revenue grew by
16.9% with an improved performance across all regions.
Data revenue was up by 31.1% in constant currency in the nine-
month period, largely driven by an increase in the data customer
base and data usage growth. Our data customer base grew 23.5%
supported by continued expansion of our 4G network (with 74% of
sites now on 4G), increased smartphone penetration by 1.7pp, and
an increase in data ARPU of 7.0%. 34.2% of our total customer
base are now data customers, up from 30.7% in the prior nine-
month period. Data usage per customer per month was 2.6GB, up
48.4% year on year, largely driven by our 4G network expansion
and increasingly popular data bundle offerings. Total data usage
Page 27 of 60
was up 81.9% driven by increase in both customer base and data
usage per customer. Growing penetration on our 4G network
helped drive data ARPU growth up 7%, with 4G data usage more
than doubling and contributing 59% to total data usage on the
network in Q3’21.
For the nine-month period data revenue contributed 29.5% to total
Group revenue, up from 26.8% in the previous period.
6.4.4.2 Mobile Money
Mobile money revenue amounted to $291 Mn, up 27.8% in
reported currency and up 34.2% in constant currency. The latter
was driven by 29% growth in the customer base and transaction
value growth of 51.6%. Growth in the customer base was largely
driven by the expansion of our distribution network, as we
continued to invest in exclusive kiosks and mobile money
branches. Throughout the period, the expansion of our mobile
money product portfolio, through various partnerships with leading
financial institutions, and the expansion of our merchant
ecosystem have further strengthened our mobile money
propositions.
EBITDA amounted to $142 Mn for the period, an increase of
28.3% in reported currency and 34.1% in constant currency. The
EBITDA margin was 48.7%, broadly stable with the previous
period. The growth in total transaction value of 51.6% in constant
currency was driven by customer base growth of 29% and 18.6%
growth in transaction value per customer per month. The Q3’21
annualised transaction value reached $52bn and mobile money
revenue now accounts for 10.2% of total revenue.
Our mobile money customer base reached 21.5 million, up 29%
over the previous period, with Airtel Money customers now
representing 18% of our total customers, an increase of 2.5pp.
Mobile money ARPU was up 5.1%, driven by the increase in
transaction values and a higher contribution from merchant
payments, cash out, P2P transfer and recharge of mobile services
through Airtel Money.
Results for the Quarter ended December 31, 2020
6.5.1 Airtel Africa Consolidated
As on 31 Dec 2020, the group had an aggregate customer base of
118.9 Mn as compared to 107.1 Mn in the corresponding quarter
last year, an increase of 11.0%. Total minutes on network during
the quarter registered a growth of 31.6% to 85.7 bn as compared
to 65.1 bn in the corresponding quarter last year.
Data customers increased by 7.7 Mn to 40.6 Mn as compared to
32.9 Mn in the corresponding quarter last year. Increase in data
subscribers was mainly led by increase in smartphone penetration,
up 1.7pp to 32.7%, and expansion of 4G network (74% of the total
sites are now on 4G). Total MBs on the network grew by 68.9% to
320.6 bn MBs as compared to 189.8 bn MBs in the corresponding
quarter last year. Data usage per customer during the quarter was
at 2,653 MBs as compared to 1,967 MBs in the corresponding
quarter last year, an increase of 34.9%.
Mobile Money revenue in constant currency grew by 41.1% driven
by customer growth of 29.0% and transaction value growth of
62.0%. The Group continued to expand the distribution network
through kiosks, mini shops and dedicated Airtel Money branches.
It also introduced additional mobile money services, including
merchant and commercial payments, benefits transfers, loans and
savings, building international money transfer services through
partnerships. Our mobile money customer base reached 21.5
million, up 29% over the previous period, with Airtel Money
customers now representing 18% of our total customers, an
increase of 2.5pp.
Reported revenue grew by 17.2%, whereas constant currency
revenue grew by 22.8%, which was partially offset by currency
devaluation. Constant currency revenue growth was largely driven
by 11.0% increase in the customer base, to 118.9 Mn, and a
increase in ARPU by 9.3% to $ 2.9. Revenue growth was recorded
across all the regions: Nigeria up 24.1%, East Africa up 26.0% and
Francophone Africa up 15.0% and services with voice revenue up
16.9%, data revenue up 27.0% and mobile money revenue up
41.1% in constant currency terms.
For the quarter, EBITDA in reported currency was $ 485 Mn, up
21.7% and 28.3% in constant currency terms. EBITDA growth
largely driven by revenue growth of 22.8% in constant currency
and efficiencies in operating expense. EBITDA margin was at
46.9%, an improvement of 2.0pp in constant currency.
On reported basis, Profit after Tax before exceptional item and
minority interest was $ 91 Mn, an increase of 25% compared to
the prior year.
Capital expenditure during the quarter was $ 188 Mn.
Operating Free Cash Flow was $ 298 Mn, up 19.6% in Reported
Currency, mainly as a result of growth in EBITDA by 21.7%.
6.5.2 Segment Wise – Africa
6.5.2.1 Nigeria
Reported revenue in Nigeria grew by 15.9% whereas constant
currency growth was 24.1%, which was as a result of Nigerian
naira devaluation by 7.9% (YoY). The revenue growth was largely
driven by voice revenue growth of 19.4% and sustained growth in
data with revenue up 30.2% in constant currency.
Voice revenue growth of 19.4% was supported by 11.5% growth
in customer base which was driven by expansion of our distribution
network as well as network infrastructure.
Data revenue growth of 30.2% in constant currency was supported
by 23.6% growth in data customers and 3.3% growth in data
ARPU. Data customer penetration was up by 4.1pp from the
previous period and reached 42.4% as of December 2020. The
data customer base growth of 23.6% was a result of the expansion
of 4G network, with 82% of total sites now on 4G. The total data
usage on our network grew by 64.6%. Data usage per customer
was up by 30.6%.
EBITDA margin in constant currency at 53.8%, YoY decrease of
0.9pp in EBITDA margin which is mainly due to increased
operating expenses as a result of higher new sites rollout (1600+
additional sites during the period).
During the period, capital expenditure was $ 81 Mn.
Operating Free Cash Flow was $ 140 Mn, up 8% in Reported
Currency, largely as a result of EBITDA growth.
Page 28 of 60
6.5.2.2 East Africa
Reported revenue in East Africa grew by 16.3%, whereas constant
currency growth was 26.0%, which was partially offset by currency
devaluation, mainly in Zambia and Kenya. Revenue growth of
26.0% in constant currency was driven by growth across all
services with voice revenue up by 20.4%, data revenue up by
17.2% and mobile money revenue up by 54.1%.
Voice revenue was up by 20.4%, largely driven by customer
growth of 11.1% and voice usage per customer up by 19.7%.
Data revenue increased 17.2%, driven by the increase in data
customer base, up 21.2% and increase in data usage per
customer, up 39.4%. Growth was recorded across all OPCOs,
driven by the expansion of network infrastructure, with 71.8% of
the sites now on our 4G network as compared to 64.4% during the
previous period. Our mobile network in Zambia, Malawi and
Uganda now consists of 100% of 4G sites.
Mobile Money revenue increased by 54.1% supported by increase
in customer base by 28.5% and transaction value per customer up
by 32.3%. We continued to expand our Mobile Money distribution
network (Agents, Kiosks and Airtel Money Branches).
EBITDA margin in constant currency at 46.5%, improved by 6.3pp
as a result of revenue growth and cost efficiencies.
Capital expenditure during the period was $ 87 Mn.
Operating free cash flow was at $ 83 Mn, up by 26.3% in Reported
Currency as a result of improvement in EBITDA.
6.5.2.3 Francophone Africa
Reported revenue grew by 18.9%, whereas constant currency
growth was 15.0%. Revenue growth was driven by all products
that is voice, data and mobile money
Voice revenue increased by 5.6% largely due to a reduction in
interconnect charges in few markets as well as decrease in
international and roaming revenue. Total minutes on network grew
by 28.0% while voice usage per customer was up by 17.3%.
Data revenue grew by 35.8% in constant currency, supported by
data customer base growth of 29.6%. Additionally, smartphone
penetration increased by 4.0pp to reach 29.3%. Total data usage
grew by 88% and data usage per customer was up 41.9%.
Mobile money revenue grew by 16.1% largely driven by 32.3%
growth in mobile money customer base supported by the
expansion of our distribution network through increase in agents,
kiosks and Airtel Money branches.
EBITDA margin in constant currency at 41.8%, increased by
4.3pp. The increase in EBITDA margin was largely due to revenue
growth in OPEX efficiency.
Capital expenditure during the period was $ 20 Mn,
Operating free cash flow was at $ 88 Mn, up by 54.0% in Reported
Currency as a result of improvement in EBITDA.
6.5.3 Product wise Africa
6.5.3.1 Mobile services
Reported mobile services revenue was up by 14.7%, with 20.2%
growth in constant currency, with both voice and data revenue
contributing to mobile services revenue growth.
Voice revenue in constant currency grew by 16.9%, driven by
customer base growth of 11%, as a result of the expansion of the
distribution network and network infrastructure, voice ARPU in
constant currency increased by 4.0%. Total minutes grew by
31.6% as a result of the increase in voice usage per customer by
17.1%.
Data revenue grew by 27.0% in constant currency, supported by
data customer base growth of 23.5%, increase in data ARPU by
1.5% and the accelerated 4G network rollout. Data customer base
was 34.2% of our total customer base, from 30.7% compared to
the previous period. Total data usage was up by 68.9% driven by
both customer base increase of 23.5% and 34.9% growth in data
usage per customer.
6.5.3.2 Mobile Money
Reported mobile money revenue was $110 Mn, up 34.0%, with a
constant currency growth of 41.1%.
The revenue growth of 41.1% was driven by a customer base
growth of 29.0% and a 62.0% growth in transaction value.
The mobile money customer base grew to 21.5 Mn, up 29.0% over
the previous period, with Airtel Money customers representing
18.0% of our total customers. Mobile money ARPU was up 9.7%,
Growth in the customer base was largely driven by the expansion
of our distribution network, as we continued to invest in exclusive
kiosks and mobile money branches. Throughout the period, the
expansion of our mobile money product portfolio, through various
partnerships with leading financial institutions, and the expansion
of our merchant ecosystem have further strengthened our mobile
money propositions.
EBITDA amounted to $ 53.5 Mn, an increase of 33.3% in reported
currency and 39.6% in constant currency. EBITDA margin in
reported currency was at 48.7%.
Page 29 of 60
SECTION 7
DETAILED FINANCIAL AND RELATED INFORMATION
7.1 Summarized extracts from interim unaudited condensed consolidated financial statements prepared under IAS 34
for the nine months ended 31 December 2020 and audited consolidated financial statements for the year ended
31 March 2020 prepared in accordance with IFRS.
7.1.1 Consolidated Statement of Comprehensive Income
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Income
Revenue 1,055 883 19% 2,870 2,522 14%
Other income 2 4 (60%) 10 15 (32%)
1,057 887 19% 2,880 2,537 14%
Expenses
Netw ork operating expenses 181 162 12% 511 459 11%
Access Charges 102 98 4% 279 282 (1%)
License fee / spectrum usage charges 50 44 13% 145 138 5%
Employee benefits expense 66 61 8% 208 172 21%
Sales and marketing expenses 51 19 172% 138 102 35%
Impairment loss/(reversal) on f inancial assets 6 (3) 293% 8 (1) 755%
Other expenses 97 81 19% 286 247 16%
Depreciation and amortisation 176 163 8% 505 481 5%
729 625 17% 2,080 1,880 11%
Operating profit 328 262 25% 800 657 22%
Finance costs 131 86 51% 325 296 10%
Finance income (3) (10) 73% (7) (70) 90%
Non-operating income - - - (70) 100%
Share of profit of associate 0 0 (84%) (0) (0) (428%)
Profit before tax 200 186 8% 482 501 (4%)
Income Tax expense 84 83 2% 221 170 30%
Profit for the period 116 103 13% 261 331 (21%)
Profit before tax (as presented above) 200 186 8% 482 501 (4%)
Add: Exceptional items (net) (20) (18) (12%) (14) (65) 79%
Underlying profit before tax 180 168 8% 468 436 7%
Profit after tax (as presented above) 116 103 13% 261 331 (21%)
Add: Exceptional items (net) (25) (30) 16% (28) (104) 73%
Underlying profit after tax 91 73 25% 233 227 3%
Particulars
Exceptional items are included within their respective heads.
Revenue in above table includes one-time exceptional revenue of $20 Mn relating to a settlement in Niger in the nine months and the three month periods to 31 December 2020.
Page 30 of 60
7.1.2 Consolidated Statement of Comprehensive Income
Amount in US$ Mn, except ratios
Quarter Ended Nine Months Ended
Dec-20 Dec-19Y-on-Y
ChangeDec-20 Dec-19
Y-on-Y
Change
Other comprehensive income ('OCI')
Items to be reclassified subsequently to profit or loss:
Net loss due to foreign currency translation differences (73) (9) (714%) (44) (32) (36%)
Net( loss)/gain on net investments hedge (9) (4) (146%) (20) 3 (713%)
Net gain on cash flow hedge - 4 (100%) - 0 (100%)
(82) (9) (820%) (64) (29) (123%)
Items not to be reclassified subsequently to profit or loss:
Re-measurement (loss)/gain on defined benefit plans 0 2 (68%) (0) 1 (100%)
Tax credit/(expense) on above (0) (0) 95% 0 (0) 110%
0 2 (67%) (0) 1 (100%)
Other comprehensive income/(loss) for the period (82) (7) (1,001%) (64) (28) (131%)
Total comprehensive income for the period 34 96 (64%) 197 303 (35%)
Profit for the period attributable to: 116 103 13% 261 331 (21%)
Ow ners of the Company 95 90 5% 206 305 (32%)
Non-controlling interests 21 13 70% 55 26 113%
Other comprehensive income/(loss) for the period attributable to: (82) (7) (1,037%) (64) (28) (128%)
Ow ners of the Company (80) (20) (294%) (60) (40) (49%)
Non-controlling interests (2) 13 (117%) (4) 12 (131%)
Total comprehensive income for the period attributable to: 34 96 (64%) 197 303 (35%)
Ow ners of the Company 15 70 (78%) 146 265 (45%)
Non-controlling interests 19 26 (25%) 51 38 33%
Earnings per share
Basic 2.5c 2.4c 5.5c 8.6c
Diluted 2.5c 2.4c 5.5c 8.6c
Particulars
Page 31 of 60
7.1.3 Consolidated Summarized Financial Position
Amount in US$ Mn
As at As at
Dec 31, 2020 Mar 31, 2020
Assets
Non-current assets
Property, plant and equipment 1,985 1,832
Capital w ork-in-progress 207 259
Right of use assets 772 639
Goodw ill 3,916 3,943
Other intangible assets 586 456
Intangible assets under development 5 30
Investment in associate 3 3
Financial Assets
- Investments 0 0
- Derivative instruments 0 0
- Security deposits 8 7
- Others 7 1
Income tax assets (net) 42 39
Deferred tax assets (net) 299 333
Other non-current assets 102 112
7,932 7,654
Current assets
Inventories 6 3
Financial Assets
- Derivative instruments 10 10
- Trade receivables 106 132
- Cash and cash equivalents 1,168 1,010
- Other Bank balance 7 6
- Balance held under mobile money trust 438 295
- Others 69 66
Other current assets 161 149
1,965 1,671
Total Assets 9,897 9,325
Current liabilities
Financial Liabilities
- Borrow ings 351 235
- Current maturities of long-term borrow ings 1,241 429
- Lease liabilities 225 199
- Derivative instruments 4 3
- Trade payables 373 416
- Mobile money w allet balance 433 292
- Others 363 461
Provisions 66 70
Deferred revenue 148 124
Current tax liabilities (net) 136 144
Other current liabilities 154 115
3,494 2,488
Net current liability (1,529) (817)
Non-current liabilities
Financial Liabilities
- Borrow ings 1,851 2,446
- Lease liabilities 1,034 970
- Derivative instruments 4 4
- Others 94 15
Provisions 26 23
Deferred tax liabilities (net) 77 69
Other non-current liabilities 24 29
3,110 3,556
Total liabilities 6,604 6,044
Net Assets 3,293 3,281
Equity
Share capital 3,420 3,420
Retained earnings 2,842 2,805
Other reserve (2,900) (2,837)
Equity attributable to owners of the company 3,362 3,388
Non-controlling interests ('NCI') (69) (107)
Total equity 3,293 3,281
Particulars
Page 32 of 60
7.1.4 Consolidated Summarized Statement of Cash Flows
Nine Months Ended
Dec-20 Dec-19
Cash flows from operating activities
Profit before tax 482 501
Adjustments for -
Depreciation and amortisation 505 481
Finance income (7) (70)
Finance cost 325 296
Share of profit of associate (0) (0)
Non-operating income adjustments - (70)
Other adjustments (1) (13) (35)
Operating cash flow before changes in working capital 1,292 1,103
Changes in working capital
Increase in trade receivables (3) (7)
Increase in inventories (3) (1)
Decrease in trade payables (44) (16)
Increase in mobile money w allet balance 141 69
(Decrease)/Increase in provisions (3) 4
Increase in deferred revenue 24 19
Decrease in income received in advance (1) (9)
Increase in other f inancial and non f inancial liabilities 8 8
Increase in other f inancial and non f inancial assets (28) (19)
Net cash generated from operations before tax 1,383 1,151
Income taxes paid (166) (95)
Net cash generated from operating activities (a) 1,217 1,056
Cash flows from investing activities
Purchase of property, plant and equipment and capital w ork-in-progress (485) (548)
Purchase of intangible assets (79) (38)
Interest received 12 22
Net cash used in investing activities (b) (552) (564)
Cash flows from financing activities
Proceeds from issue of shares to ow ners of the Company - 680
Proceeds from sale of shares to non-controlling interests - 3
Acquisition of non-controlling interests (3) -
Purchase of ow n shares by ESOP trust (0) -
Payment of share issue expenses - (17)
Proceeds from borrow ings 362 169
Repayment of borrow ings (209) (341)
Repayment of lease liabilities (146) (137)
Dividend paid to non-controlling interests (9) -
Dividend paid to ow ners of the Company (169) (113)
Interest and other f inance charges paid (248) (247)
Share stabilisation proceeds - 7
Proceeds from cancellation of derivatives - 122
Payment on maturity of derivatives (3) -
Net cash (used) in/generated from financing activities (c) (425) 126
Increase in cash and cash equivalents during the period (a+b+c) 240 618
Currency translation differences relating to cash and cash equivalents (14) 2
Cash and cash equivalents as at beginning of the period 1,087 870
Cash and cash equivalents as at end of the period (2) 1,313 1,490
Particulars
(1) For the period ended 31 December 2020, this includes $ 20 Mn on account of service revenues, which represents recognition of revenues pertaining to earlier years on a cumulative catch-up basis, arising out of a settlement agreement entered with a customer in one of the group’s subsidiaries. For the period ended 31 December 2019, this includes impact relating to previous periods of $ 27 Mn on deferment of customer acquisition costs following reassessment of customer life. (2) Includes balance held under mobile money trust of $ 438 Mn (December 2019: $ 307 Mn) on behalf of mobile money customers which are not available for use by the group. Starting 31 March 2020, the group considers balance held under mobile money trust to be cash and cash equivalent. Consequent reclassification have been made to the cash flow statement for the nine months ended 31 December 2019.
Page 33 of 60
7.2 Use of Alternative performance measures (APM) Financial Information In presenting and discussing the Group’s reported financial position, operating results and cash flows, certain information is derived from
amounts calculated in accordance with IFRS, but this information is not in itself an expressly permitted GAAP measure. Such Alternative
performance measures (APM) should not be viewed in isolation as alternatives to the equivalent GAAP measures, if any.
A summary of Alternative performance measures (APM) included in this report, together with details where additional information and
reconciliation to the nearest equivalent GAAP measure can be found, is shown below.
Alternative performance measures (APM) Equivalent GAAP measure for IFRSLocation in this results announcement
of reconciliation and further information
Revenue Revenue (as reported in IAS 34 table 7.1.1) Page 33
Earnings before Interest, Taxation, Depreciation and
Amortization (EBITDA)
Operating profit Page 33
Underlying Operating Expenses Expenses Page 34
Finance Cost (net) Finance Cost and Finance Income Page 34
Profit / (loss) before tax (before exceptional item) Profit / (Loss) Before Tax Page 34
Profit / (loss) after tax (before exceptional item) Profit / (loss) after tax Page 34
Cash Profit from Operations before Derivative &
Exchange (Gain)/Loss
Profit from operating activities Page 35
Effective tax rate and adjusted Effective tax rate Reported Tax Rate Page 35
Capital Expenditure (Capex) Refer glossary NA
Operating free cash flow Refer glossary NA
Capital Employed Refer glossary NA
7.2.1 Reconciliation between GAAP and Alternative performance measures (APM)
7.2.1.1: Revenue
Dec-20 Dec-19
Revenue (as reported in IAS 34 table 7.1.1) US$ Mn 2,870 2,522
Less:
Exceptional items US$ Mn (20)
Revenue US$ Mn 2,850 2,522
Particulars UoMNine Months Ended
Exceptional item in above table is $ 20 Mn (in reported currency) relating to a settlement in Niger in the nine-month period to 31 December 2020
7.2.1.2: EBITDA and Margin
Dec-20 Dec-19
Operating profit US$ Mn 800 657
Add:
Depreciation and amortization US$ Mn 505 481
Charity and donation US$ Mn 6 4
Exceptional items US$ Mn (14) (24)
EBITDA US$ Mn 1,297 1,118
Revenue US$ Mn 2,850 2,522
EBITDAMargin (%) US$ Mn 45.5% 44.3%
Particulars UoMNine Months Ended
Page 34 of 60
7.2.1.3: Underlying Operating Expenditure
Dec-20 Dec-19
Expenses US$ Mn 2,080 1,880
Less:
Access charges US$ Mn (279) (282)
Depreciation and amortization US$ Mn (505) (481)
Charity and donation US$ Mn (6) (4)
Exceptional items US$ Mn (6) 24
Underlying Operating Expenditure US$ Mn 1,284 1,137
Particulars UoMNine Months Ended
7.2.1.4: Finance Cost (net)
Nine Months Ended
Dec-20 Dec-19
Finance cost US$ Mn 325 296
Finance income US$ Mn (7) (70)
Exceptional items US$ Mn 0 0
Finance cost (net) US$ Mn 318 225
Particulars UOM
7.2.1.5: Profit / (Loss) Before Tax
Dec-20 Dec-19
Profit / (loss) for the year Before Tax US$ Mn 482 501
Exceptional items US$ Mn (14) (65)
Profit / (loss) before tax (before exceptional item) US$ Mn 468 436
Particulars UoMNine Months Ended
7.2.1.6: Profit / (Loss) After Tax
Dec-20 Dec-19
Profit / (loss) after tax US$ Mn 261 331
Exceptional items US$ Mn (28) (104)
Profit / (loss) after tax (before exceptional item) US$ Mn 233 227
Particulars UoMNine Months Ended
7.2.1.7: Operating Free Cash Flow
Dec-20 Dec-19
Net Cash Generated from Operating Activities US$ Mn 1,217 1,056
Add: Income tax paid US$ Mn 166 95
Cash Generation from Operation before tax US$ Mn 1,383 1,151
Less: Changes in working capital US$ Mn 92 48
Operating cash flow before changes in working capital US$ Mn 1,292 1,103
Other adjustments US$ Mn 13 35
Charity and donation US$ Mn 6 4
Exceptional items US$ Mn (14) (24)
EBITDA US$ Mn 1,297 1,118
Less: Capital Expenditure US$ Mn (403) (396)
Operating Free Cash Flow US$ Mn 894 722
Particulars UoMNine Months Ended
Page 35 of 60
7.2.1.8: Cash Profit from Operations before Derivative and Exchange Fluctuation
Nine Months Ended
Dec-20 Dec-19
Operating profit US$ Mn 800 657
Finance cost (net) US$ Mn (318) (225)
Depreciation and Amortisation US$ Mn 505 481
Derivatives and exchange (gain)/loss US$ Mn 81 (4)
Exceptional items US$ Mn (14) (24)
Cash Profit from Operations before Derivative and
Exchange FluctuationUS$ Mn 1,053 885
Particulars UOM
7.2.1.9: Effective tax rate and adjusted Effective tax rate
Profit before
taxation
Income tax
expenseTax Rate %
Profit before
taxation
Income tax
expenseTax Rate %
Reported Effective tax rate US$ Mn 482 221 45.9% 501 170 34.0%
Adjusted for :
Exceptional Items (provided below ) US$ Mn (14) 14 (65) 39
Foreign exchange rate movements for non-DTA
operating companies & holding companiesUS$ Mn 58 (27)
One-off tax adjustment US$ Mn 3
Tax on Permanent Difference (net) US$ Mn 1 (6)
Effective tax rate US$ Mn 526 239 45.5% 409 203 49.7%
Deferred tax trigerred during the period US$ Mn (14) (43)
Adjusted effective tax rate US$ Mn 526 225 42.8% 409 160 39.2%
Exceptional items
1. Deferred tax asset recognition US$ Mn (14) (43)
2. Netw ork modernisation US$ Mn 27 (2)
3. Employee restructuring US$ Mn 6
4. Service revenues US$ Mn (20)
5. Reversal of indemnities US$ Mn (72)
6. Share issue and IPO related expenses US$ Mn 6
7. Finance Cost US$ Mn 1
8. Customer acquisition cost US$ Mn (27) 6
Total US$ Mn (14) (14) (65) (39)
Particulars UoM
Nine Months Ended
Dec-20 Dec-19
Page 36 of 60
SECTION 8
NET DEBT AND COST SCHEDULES
8.1 Consolidated Schedule of Net Debt
Amount in US$ Mn
As at As at
Dec 31, 2020 Mar 31, 2020
Long term borrow ing, net of current portion 1,834 2,424
Short-term borrow ings and current portion of long-term borrow ing 1,593 664
Less:
Cash and Cash Equivalents 1,168 1,010
Net Debt excluding Lease Obligations 2,259 2,078
Lease Obligations 1,259 1,169
Net Debt including Lease Obligations 3,518 3,247
Particulars
8.2 Consolidated Schedule of Net Finance Cost (in Reported Currency)
Amount in US$ Mn
Quarter Ended Nine Months Ended
Dec-20 Dec-19 Dec-20 Dec-19
Interest on borrow ings and Finance charges 51 48 144 156
Interest on Lease Obligation 34 32 101 96
Investment (income)/ loss (3) (8) (7) (22)
Finance cost excluding Derivatives and Forex 82 72 237 229
Add : Derivatives and exchange (gain)/ loss 46 5 81 (4)
Finance cost (net of Derivatives and Forex) 128 76 318 225
Particulars
8.3 Consolidated Schedule of Operating Expenses (in Constant Currency)
Amount in US$ Mn
Quarter Ended Nine Months Ended
Dec-20 Dec-19 Dec-20 Dec-19
Access charges 103 93 281 269
Cost of goods sold 51 36 136 97
License fee / spectrum charges (revenue share) 50 43 145 133
Netw ork operations costs 180 155 512 429
Employee benefits expense 68 63 207 179
Selling, general and adminstration expense 102 80 293 258
Operating Expenses 554 471 1,573 1,365
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency.
Page 37 of 60
8.4 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Constant Currency)
Amount in US$ Mn
Quarter Ended Nine Months Ended
Dec-20 Dec-19 Dec-20 Dec-19
Depreciation 148 128 424 376
Amortization 28 20 81 60
Depreciation and Amortization 176 148 505 435
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency.
8.5 Consolidated Schedule of Operating Expenses before exceptional item (in Reported Currency)
Amount in US$ Mn
Quarter Ended Nine Months Ended
Dec-20 Dec-19 Dec-20 Dec-19
Access charges 102 98 279 282
Cost of goods sold 50 38 135 103
License fee / spectrum charges (revenue share) 50 44 145 138
Netw ork operations costs 179 161 510 448
Employee benefits expense 68 65 207 184
Selling, general and adminstration expense 102 83 293 268
Operating Expenses 552 489 1,569 1,423
Particulars
8.6 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Reported Currency)
Amount in US$ Mn
Quarter Ended Nine Months Ended
Dec-20 Dec-19 Dec-20 Dec-19
Depreciation 148 132 424 391
Amortization 29 20 81 62
Depreciation and Amortization 176 153 505 453
Particulars
8.7 Consolidated Schedule of Income Tax before exceptional item (in Reported Currency)
Amount in US$ Mn
Quarter Ended Nine Months Ended
Dec-20 Dec-19 Dec-20 Dec-19
Current tax expense 63 62 165 133
Deferred tax expense / (income) 26 32 70 77
Income tax expense 89 95 235 210
Particulars
Page 38 of 60
SECTION 9
TRENDS AND RATIO ANALYSIS
9.1 Based on Statement of Operations
9.1.1 Consolidated Statement of Operations: (in Reported Currency)
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 1,034 965 851 899 883
Access charges 102 93 84 94 98
Cost of goods sold 50 48 37 39 38
Net revenues 882 824 729 766 747
Operating Expenses (Excl Access Charges, cost of
goods sold and License Fee)349 345 310 321 308
Licence Fee 50 47 48 51 44
EBITDA 485 437 375 397 399
Cash Profit from operations before Derivative and
Exchange Fluctuations402 357 295 325 326
EBIT 308 269 210 244 245
Share of results of associate 0 (0) (0) (0) 0
Profit before Tax 180 177 111 97 167
Profit after Tax (before exceptional items) 91 92 50 70 73
Non Controlling Interest (before exceptional items) 17 17 12 12 10
Net Income (before exceptional items) 74 75 38 57 63
Exceptional items (net) (25) 4 (7) (7) (30)
Profit after Tax (after exceptional items) 116 88 57 77 103
Non Controlling Interest 21 18 15 12 13
Net Income 95 70 42 65 90
Capex 188 149 66 246 150
Operating Free Cash Flow (EBITDA - Capex) 298 287 309 151 249
Total Capital Employed 6,811 6,777 6,636 6,528 6,595
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
As a % of Revenue
Access charges 9.9% 9.6% 9.9% 10.5% 11.1%
Cost of goods sold 4.8% 5.0% 4.4% 4.3% 4.3%
Net revenues 85.3% 85.4% 85.7% 85.2% 84.6%
Operating Expenses (excluding access charges,
cost of goods sold and license fee)33.7% 35.7% 36.5% 35.7% 34.9%
Licence Fee 4.8% 4.9% 5.6% 5.7% 5.0%
EBITDA 46.9% 45.3% 44.1% 44.1% 45.2%
Cash Profit from operations before Derivative and
Exchange Flucations38.9% 37.0% 34.6% 36.1% 36.9%
EBIT 29.8% 27.8% 24.7% 27.2% 27.7%
Share of results of associate 0.0% (0.0%) (0.0%) (0.0%) 0.0%
Profit before Tax 17.4% 18.3% 13.1% 10.8% 18.9%
Profit after Tax (before exceptional items) 8.8% 9.5% 5.9% 7.8% 8.2%
Non Controlling Interest (before exceptional items) 1.7% 1.7% 1.4% 1.4% 1.1%
Net Income (before exceptional items) 7.1% 7.7% 4.5% 6.4% 7.1%
Exceptional items (net) (2.4%) 0.4% (0.8%) (0.8%) (3.4%)
Profit after Tax (after exceptional items) 11.2% 9.1% 6.7% 8.6% 11.6%
Non Controlling Interest 2.1% 1.8% 1.8% 1.4% 1.4%
Net Income 9.1% 7.3% 4.9% 7.2% 10.2%
Particulars
Page 39 of 60
9.1.2 Consolidated Statement of Operations: (in Constant Currency)
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 1,038 963 856 870 845
Access charges 103 93 85 91 93
Cost of goods sold 51 48 37 37 36
Net revenues 885 822 733 742 716
Operating Expenses (Excl Access Charges, cost of
goods sold and License Fee)350 343 312 313 297
Licence Fee 50 47 48 50 43
EBITDA 487 436 377 382 380
EBIT 309 269 211 233 231
Capex 188 149 66 246 150
Operating Free Cash Flow (EBITDA - Capex) 299 287 310 136 230
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
As a % of Revenue
Access charges 9.9% 9.7% 9.9% 10.4% 11.1%
Cost of goods sold 4.9% 5.0% 4.4% 4.3% 4.3%
Net revenues 85.2% 85.4% 85.7% 85.3% 84.7%
Operating Expenses (excluding access charges,
cost of goods sold and license fee)33.7% 35.7% 36.5% 36.0% 35.2%
Licence Fee 4.8% 4.9% 5.6% 5.8% 5.1%
EBITDA 46.9% 45.3% 44.0% 43.9% 44.9%
EBIT 29.8% 27.9% 24.7% 26.8% 27.3%
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 40 of 60
9.2 Based on Segment Wise Statement of Operations
9.2.1 Nigeria
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 412 377 341 377 355
EBITDA 221 204 182 209 194
EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%
EBIT 159 141 130 163 146
Capex 81 67 30 145 64
Operating Free Cash Flow (EBITDA - Capex) 140 137 152 64 130
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 414 379 343 359 334
EBITDA 223 205 183 199 183
EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%
EBIT 160 142 130 154 138
Capex 81 67 30 145 64
Operating Free Cash Flow (EBITDA - Capex) 142 138 153 54 119
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 41 of 60
9.2.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 364 355 305 310 313
EBITDA 170 163 129 125 127
EBITDA / Revenue 46.8% 46.0% 42.4% 40.3% 40.5%
EBIT 113 110 74 70 70
Capex 87 62 19 61 61
Operating Free Cash Flow (EBITDA - Capex) 83 101 110 64 66
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 374 358 306 299 297
EBITDA 174 164 130 120 120
EBITDA / Revenue 46.5% 45.8% 42.3% 40.2% 40.2%
EBIT 115 110 74 67 65
Capex 87 62 19 61 61
Operating Free Cash Flow (EBITDA - Capex) 87 102 110 60 59
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 42 of 60
9.2.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 259 236 209 215 218
EBITDA 108 73 74 70 82
EBITDA / Revenue 41.7% 30.8% 35.1% 32.7% 37.5%
EBIT 51 23 25 24 32
Capex 20 20 16 40 24
Operating Free Cash Flow (EBITDA - Capex) 88 53 58 31 57
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 249 230 211 215 217
EBITDA 104 71 74 70 81
EBITDA / Revenue 41.8% 30.9% 35.0% 32.7% 37.5%
EBIT 49 23 24 24 32
Capex 20 20 16 40 24
Operating Free Cash Flow (EBITDA - Capex) 85 51 58 31 57
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 43 of 60
9.3 Based on Product Wise Statement of Operations
9.3.1 Mobile Services - Summarized Statement of Operations
9.3.1.1 Consolidated Mobile:
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 948 891 799 844 826
EBITDA 446 392 345 366 363
EBITDA / Revenue 47.1% 44.0% 43.2% 43.3% 43.9%
EBIT 271 228 192 220 210
Capex 184 147 64 240 145
Operating Free Cash Flow (EBITDA - Capex) 262 245 281 125 217
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 951 889 803 816 791
EBITDA 447 392 347 351 345
EBITDA / Revenue 47.1% 44.1% 43.1% 43.0% 43.6%
EBIT 272 229 192 209 198
Capex 184 147 64 240 145
Operating Free Cash Flow (EBITDA - Capex) 263 245 283 111 200
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
9.3.1.2 Nigeria Mobile Services
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 412 377 341 377 354
EBITDA 222 204 182 209 194
EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%
EBIT 159 142 130 163 146
Capex 81 67 30 145 64
Operating Free Cash Flow (EBITDA - Capex) 141 137 152 64 130
Particulars
Page 44 of 60
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 414 378 343 359 333
EBITDA 223 205 183 199 182
EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%
EBIT 161 142 130 154 137
Capex 81 67 30 145 64
Operating Free Cash Flow (EBITDA - Capex) 142 138 153 54 118
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
9.3.1.3 East Africa Mobile Services (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 301 298 264 268 272
EBITDA 132 128 103 100 101
EBITDA / Revenue 43.9% 43.1% 38.9% 37.2% 37.1%
EBIT 76 76 50 46 45
Capex 84 60 18 56 57
Operating Free Cash Flow (EBITDA - Capex) 48 68 85 44 44
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 310 301 266 259 258
EBITDA 135 129 103 96 95
EBITDA / Revenue 43.6% 42.9% 38.8% 37.0% 36.8%
EBIT 78 76 50 44 42
Capex 84 60 18 56 57
Operating Free Cash Flow (EBITDA - Capex) 51 69 85 40 38
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 45 of 60
9.3.1.4 Francophone Africa Mobile Services (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 238 218 196 200 202
EBITDA 92 60 62 58 68
EBITDA / Revenue 38.8% 27.5% 31.4% 28.7% 33.7%
EBIT 35 10 13 11 18
Capex 19 20 16 39 24
Operating Free Cash Flow (EBITDA - Capex) 73 40 46 18 44
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 229 213 197 200 201
EBITDA 89 59 62 58 68
EBITDA / Revenue 38.9% 27.6% 31.3% 28.7% 33.7%
EBIT 34 10 13 11 18
Capex 19 20 16 39 24
Operating Free Cash Flow (EBITDA - Capex) 70 39 46 18 43
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 46 of 60
9.3.2 Mobile Money - Summarized Statement of Operations
9.3.2.1 Mobile Money:
In Reported Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 110 100 81 83 82
EBITDA 54 49 39 39 40
EBITDA / Revenue 48.7% 48.7% 48.5% 47.3% 49.0%
EBIT 52 47 37 36 39
Capex 3 2 2 5 4
Operating Free Cash Flow (EBITDA - Capex) 51 47 37 34 36
Particulars
In Constant Currency
Amount in US$ Mn, except ratios
Quarter Ended
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Revenue 111 100 81 81 79
EBITDA 54 48 39 38 39
EBITDA / Revenue 48.6% 48.6% 48.5% 47.5% 49.2%
EBIT 52 46 37 36 37
Capex 3 2 2 5 4
Operating Free Cash Flow (EBITDA - Capex) 51 47 37 33 35
Particulars
Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.
Page 47 of 60
9.4 Operational Performance Trends (Quarter Ended)
9.4.1 Consolidated - Operational Performance
Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Customer Base 000's 118,903 116,371 111,461 110,604 107,140
Net Additions 000's 2,532 4,910 857 3,464 3,258
Monthly Churn % 5.0% 5.3% 5.7% 5.3% 5.2%
Average Revenue Per User (ARPU) US$ 2.9 2.8 2.6 2.7 2.7
Voice
Voice Revenue US$ Mn 566 517 456 494 484
Minutes on the netw ork Mn 85,651 80,375 71,891 68,870 65,086
Voice Average Revenue Per User (ARPU) US$ 1.6 1.5 1.4 1.5 1.5
Voice Usage per customer min 241 235 218 211 206
Data
Data Revenue US$ Mn 295 283 267 245 232
Data Customer Base 000's 40,624 39,596 36,972 35,443 32,887
As % of Customer Base % 34.2% 34.0% 33.2% 32.0% 30.7%
Total MBs on the netw ork Mn MBs 320,568 293,919 279,541 219,015 189,798
Data Average Revenue Per User (ARPU) US$ 2.4 2.5 2.5 2.4 2.4
Data Usage per customer MBs 2,653 2,576 2,607 2,145 1,967
M obile M oney
Transaction Value US$ Mn 12,959 11,637 9,038 8,031 8,001
Transaction Value per Subs US$ 208 199 164 155 166
Mobile Money Revenue US$ Mn 111 100 81 81 79
Active Customers 000's 21,460 20,120 18,529 18,294 16,634
Mobile Money ARPU US$ 1.8 1.7 1.5 1.6 1.6
Network and Coverage
Netw ork tow ers Nos 24,693 24,246 23,471 22,909 22,253
Owned towers Nos 4,530 4,561 4,569 4,548 4,454
Leased towers Nos 20,163 19,685 18,902 18,361 17,799
Of w hich Mobile Broadband tow ers Nos 22,998 22,250 21,171 20,378 19,133
Total Mobile Broadband Base stations Nos 72,616 63,705 51,963 47,082 43,174
Data Capacity TB/day 11,448 10,253 8,371 7,572 6,780
Revenue Per site Per Month US$ 14,108 13,408 12,257 12,809 12,718
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.
Page 48 of 60
9.4.2 Nigeria - Operational Performance
Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Customer Base 000's 44,449 44,054 42,513 41,757 39,855
Net Additions 000's 395 1,541 757 1,902 343
Monthly Churn % 5.4% 6.1% 5.7% 5.8% 6.8%
Average Revenue Per User (ARPU) US$ 3.1 2.9 2.7 2.9 2.8
Voice
Voice Revenue US$ Mn 245 217 198 222 205
Minutes on the netw ork Mn 23,578 20,867 19,275 20,447 18,812
Voice Average Revenue Per User (ARPU) US$ 1.8 1.7 1.6 1.8 1.7
Voice Usage per customer min 174 161 154 166 158
Data
Data Revenue US$ Mn 141 135 122 114 109
Data Customer Base 000's 18,831 19,003 17,334 16,715 15,234
As % of Customer Base % 42.4% 43.1% 40.8% 40.0% 38.2%
Total MBs on the netw ork Mn MBs 158,566 147,471 139,285 108,561 96,313
Data Average Revenue Per User (ARPU) US$ 2.5 2.5 2.4 2.4 2.4
Data Usage per customer MBs 2,749 2,743 2,752 2,252 2,105
Network and Coverage
Netw ork tow ers Nos 10,588 10,347 9,802 9,352 8,924
Owned towers Nos 203 199 204 200 177
Leased towers Nos 10,385 10,148 9,598 9,152 8,747
Of w hich Mobile Broadband tow ers Nos 10,376 10,002 9,326 8,796 8,093
Total Mobile Broadband Base stations Nos 37,098 30,091 19,258 15,788 13,865
Data Capacity TB/day 6,115 5,245 3,489 2,980 2,486
Revenue Per site Per Month US$ 13,179 12,500 11,904 13,060 12,491
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.
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9.4.3 East Africa - Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)
Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Customer Base 000's 52,612 51,265 48,757 48,634 47,366
Net Additions 000's 1,348 2,508 123 1,268 2,359
Monthly Churn % 4.6% 4.5% 5.7% 4.7% 3.8%
Average Revenue Per User (ARPU) US$ 2.4 2.4 2.1 2.1 2.2
Voice
Voice Revenue US$ Mn 179 171 144 147 149
Minutes on the netw ork Mn 52,988 51,335 45,107 41,049 39,177
Voice Average Revenue Per User (ARPU) US$ 1.1 1.1 1.0 1.0 1.1
Voice Usage per customer min 340 342 311 285 284
Data
Data Revenue US$ Mn 90 89 86 79 77
Data Customer Base 000's 15,638 14,924 14,041 13,322 12,903
As % of Customer Base % 29.7% 29.1% 28.8% 27.4% 27.2%
Total MBs on the netw ork Mn MBs 125,879 115,048 110,172 85,983 74,285
Data Average Revenue Per User (ARPU) US$ 2.0 2.0 2.1 2.1 2.1
Data Usage per customer MBs 2,776 2,632 2,711 2,227 1,991
Network and Coverage
Netw ork tow ers Nos 9,365 9,193 9,039 8,987 8,838
Owned towers Nos 2,492 2,544 2,535 2,499 2,475
Leased towers Nos 6,873 6,649 6,504 6,488 6,363
Of w hich Mobile Broadband tow ers Nos 8,260 8,039 7,880 7,809 7,542
Total Mobile Broadband Base stations Nos 24,200 22,567 22,071 21,162 20,340
Data Capacity TB/day 3,703 3,426 3,355 3,147 3,009
Revenue Per site Per Month US$ 13,405 13,025 11,264 11,156 11,261
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.
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9.4.4 Francophone Africa- Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)
Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Customer Base 000's 21,842 21,052 20,190 20,213 19,919
Net Additions 000's 790 862 (23) 294 557
Monthly Churn % 5.5% 5.5% 5.9% 6.0% 5.4%
Average Revenue Per User (ARPU) US$ 3.9 3.7 3.5 3.6 3.7
Voice
Voice Revenue US$ Mn 140 131 117 127 133
Minutes on the netw ork Mn 9,084 8,173 7,509 7,373 7,097
Voice Average Revenue Per User (ARPU) US$ 2.2 2.1 1.9 2.1 2.3
Voice Usage per customer min 141 132 125 122 121
Data
Data Revenue US$ Mn 63 59 58 51 47
Data Customer Base 000's 6,155 5,669 5,596 5,405 4,749
As % of Customer Base % 28.2% 26.9% 27.7% 26.7% 23.8%
Total MBs on the netw ork Mn MBs 36,124 31,400 30,083 24,471 19,200
Data Average Revenue Per User (ARPU) US$ 3.6 3.5 3.6 3.3 3.5
Data Usage per customer MBs 2,028 1,889 1,882 1,601 1,429
Network and Coverage
Netw ork tow ers Nos 4,740 4,706 4,630 4,570 4,491
Owned towers Nos 1,835 1,818 1,830 1,849 1,802
Leased towers Nos 2,905 2,888 2,800 2,721 2,689
Of w hich Mobile Broadband tow ers Nos 4,362 4,209 3,965 3,773 3,498
Total Mobile Broadband Base stations Nos 11,318 11,047 10,634 10,132 8,969
Data Capacity TB/day 1,630 1,582 1,527 1,445 1,285
Revenue Per site Per Month US$ 17,547 16,363 15,222 15,806 16,255
Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.
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SECTION 10
KEY ACCOUNTING POLICIES (AS PER IFRS)
• Property, plant and equipment and capital work-in-progress
An item is recognised as an asset, if and only if, it is probable that the future economic benefits associated with the item will flow to the Group and its cost can be measured reliably. PPE is initially recognised at cost. The initial cost of PPE comprises its purchase price (including non-refundable duties and taxes but excluding any trade discounts and rebates), and any directly attributable cost of bringing the asset to its working condition and location for its intended use. Further, it includes assets installed on the premises of customers as the associated risks, rewards and control remain with the Group. Subsequent to initial recognition, PPE is stated at cost less accumulated depreciation and any impairment losses. When significant parts of PPE are required to be replaced at regular intervals, the Group recognises such parts as separate component of assets. When an item of PPE is replaced, then its carrying amount is de-recognised from the consolidated statement of financial position and cost of the new item of PPE is recognised. The expenditures that are incurred after an item of PPE has been ready to use, such as repairs and maintenance, are normally charged to the consolidated statement of comprehensive income in the period in which such costs are incurred. However, in situations where the said expenditure can be measured reliably, and is probable that future economic benefits associated with it will flow to the Group, it is included in the asset’s carrying value or as a separate asset, as appropriate. Depreciation on PPE is computed using the straight-line method over the estimated useful lives. Freehold land is not depreciated as it has an unlimited useful life. The Group has established the estimated range of useful lives for different categories of PPE as follows: Asset Categories Years
Leasehold improvementPeriod of lease or 10-20 years,
as applicable, w hichever is less
Buildings 20
Plant and equipment
- Netw ork equipment (including passive
infrastructure)3 - 25
Computer equipment 3-5
Furniture & fixture and office equipment 1-5
Vehicles 3-5 The useful lives, residual values and depreciation method of PPE are reviewed, and adjusted appropriately, at-least as at each reporting date so as to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from these assets. The effect of any change in the estimated useful lives, residual values and / or depreciation method are accounted prospectively, and accordingly, the depreciation is calculated over the PPE’s remaining revised useful life. The cost and the accumulated depreciation for PPE sold, scrapped, retired or otherwise disposed of are de-recognised from the consolidated statement of financial position and the resulting gains / (losses) are included in the consolidated statement of comprehensive income within other expenses / other income. PPE in the course of construction is carried at cost, less any accumulated impairment and presented separately as capital work-in-progress (CWIP) including capital advances in the consolidated statement of financial position until capitalised. Such
cost comprises of purchase price (including non-refundable duties and taxes but excluding any trade discounts and rebates), and any directly attributable cost.
• Goodwill Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable net assets acquired. Goodwill is not amortised; however, it is tested for impairment and carried at cost less any accumulated impairment losses. The gains/ (losses) on the disposal of a cash-generating unit (‘CGU’) include the carrying amount of goodwill relating to the CGU sold (in case goodwill has been allocated to Group of CGUs; it is determined on the basis of the relative fair value of the operations sold). Goodwill is tested for impairment, at least annually or earlier, in case circumstances indicate that their carrying value may exceed the recoverable amount (higher of fair value less costs of sell and the value -in- use). For the purpose of impairment testing, the goodwill is allocated to a cash-generating-unit (‘CGU’) or group of CGUs (‘CGUs’) which are expected to benefit from the acquisition-related synergies and represent the lowest level within the entity at which the goodwill is monitored for internal management purposes, but not higher than an operating segment. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying value of a CGU/CGUs including the goodwill, exceeds the estimated recoverable amount of the CGU/CGUs. The recoverable amount of a CGU/CGUs is the higher of its fair value less costs to sell and its value in use. Value-in-use is the present value of future cash flows expected to be derived from the CGU/CGUs. The total impairment loss of a CGU/CGUs is allocated first to reduce the carrying value of goodwill allocated to that CGU/CGUs and then to the other assets of that CGU/CGUs - on pro-rata basis of the carrying value of each asset.
• Other Intangible assets Identifiable intangible assets are recognised when the Group controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Group and the cost of the asset can be measured reliably. The intangible assets that are acquired in a business combination are recognised at fair value as on acquisition date. Other intangible assets are recognised at cost. Such costs include cash price equivalent of deferred payments beyond normal credit terms. These assets having a definite useful life are carried at cost less accumulated amortisation and any impairment losses. Amortisation is computed using the straight-line method over the expected useful life of intangible assets. The Group has established the estimated useful lives of different categories of intangible assets as follows: a. Licenses (including spectrum) Acquired licenses and spectrum are amortised commencing from the date when the related network is available for intended use in the relevant jurisdiction. The useful lives range from two to twenty-five years.
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In addition, the Group also incurs a fee on licenses/spectrum that is calculated based on the revenue amount of the period. Such revenue-share based fee is recognised as a cost in the consolidated statement of comprehensive income when incurred. b. Software: Software are amortised over the period of the software license period, generally not exceeding three years. c. Other acquired intangible assets: Other acquired intangible assets include the following: Customer relationships: Over the estimated life of such relationships which ranges from one year to five years. The useful lives and amortisation method are reviewed, and adjusted appropriately, at least at each financial year end so as to ensure that the method and period of amortisation are consistent with the expected pattern of economic benefits from these assets. The effect of any change in the estimated useful lives and / or amortisation method is accounted prospectively, and accordingly, the amortisation is calculated over the remaining revised useful life. Further, the cost of intangible assets under development includes the amount of spectrum allotted to the Group and related costs for which services are yet to be rolled out and are presented separately in the consolidated statement of financial position.
• Investment in Associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investment in associate is accounted for using equity method; from the date on which the Group starts exercising significant influence over the associate. At each reporting date, the Group determines whether there is objective evidence that the investment is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of investment and its carrying value.
• Leases At inception of a contract, the Group assesses a contract as, or containing, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether the contract involves the use of an identified asset, the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and the Group has the right to direct the use of the asset. a. Group as a lessee The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee in the consolidated statement of financial position. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease liabilities include the net present value of fixed payments (including in-substance fixed payments), variable lease payments that are based on consumer price index (‘CPI’), the
exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. Subsequently, the lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments including due to changes in CPI or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or when the lease contract is modified and the lease modification is not accounted for as a separate lease. The corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the related right-of-use asset has been reduced to zero. Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs, and restoration costs. Subsequent to initial recognition, right-of-use assets are stated at cost less accumulated depreciation and any impairment losses and adjusted for certain re-measurements of the lease liability. Depreciation is computed using the straight-line method from the commencement date to the end of the useful life of the underlying asset or the end of the lease term, whichever is shorter. The estimated useful lives of right-of-use assets are determined on the same basis as those of the underlying property and equipment. In the consolidated statement of financial position, the right-of-use assets and lease liabilities are presented separately. When a contract includes lease and non-lease components, the Group allocates the consideration in the contract on the basis of the relative stand-alone prices of each lease component and the aggregate stand-alone price of the non-lease components. Short-term leases The Group has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of 12 months or less. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. b. Group as a lessor Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under a finance lease are recognised as receivables at an amount equal to the net investment in the leased assets. Finance lease income is allocated to the periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the finance lease. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term. When a contract includes lease and non-lease components, the Group applies IFRS 15 to allocate the consideration under the contract to each component.
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The Group enters into ‘Indefeasible right to use’ (‘IRU’) arrangements wherein the right to use the assets is given over the substantial part of the asset life. However, as the title to the assets and the significant risks associated with the operation and maintenance of these assets remains with the Group, such arrangements are recognised as operating lease. The contracted price is recognised as revenue during the tenure of the agreement. Unearned IRU revenue received in advance is presented as deferred revenue within liabilities in the consolidated statement of financial position.
• Derivative financial instruments
Derivative financial instruments, including separated embedded derivatives that are not designated as hedging instruments in a hedging relationship are classified as financial instruments at fair value through profit or loss. Such derivative financial instruments are initially recognised at fair value. They are subsequently measured at their fair value, with changes in fair value being recognised in profit or loss within finance income / finance costs.
• Hedging activities
i. Fair value hedge
Some of the Group’s entities use derivative financial instruments (e.g. interest rate / currency swaps) to manage / mitigate their exposure to the risk of change in fair value of the borrowings. The Group designates certain interest swaps to hedge the risk of changes in fair value of recognised borrowings attributable to the hedged interest rate risk. The effective and ineffective portion of changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit and loss within finance income / finance costs, together with any changes in the fair value of the hedged liability that is attributable to the hedged risk. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of the hedged item is amortised to profit or loss over the period to remaining maturity of the hedged item.
ii. Cash flow hedge Some of the Group’s entities use derivative financial instruments (e.g. foreign currency forwards, options, swaps) to manage their exposure to foreign exchange and price risk. Further, the Group designates certain derivative financial instruments (or its components) as hedging instruments for hedging the exchange rate fluctuation risk attributable to either a recognised item or a highly probable forecast transaction (‘Cash flow hedge’). The effective portion of changes in the fair value of derivative financial instruments (or its components) that are designated and qualify as cash flow hedges, are recognised in other comprehensive income and held as cash flow hedge reserve (‘CFHR’) – within other components of equity. Any gains / (losses) relating to the ineffective portion, are recognised immediately in profit or loss within finance income / finance costs. The amounts accumulated in equity are re-classified to the profit and loss in the periods when the hedged item affects profit / (loss). When a hedging instrument expires or is sold, or when a cash flow hedge no longer meets the criteria for hedge accounting, any cumulative gains / (losses) existing in equity at that time remains in equity and is recognised (on the basis as discussed in the above paragraph) when the forecast transaction is ultimately recognised in the profit and loss. However, at any point of time, when a forecast transaction is no longer expected to occur, the cumulative gains / (losses) that were reported in equity is immediately
transferred to the profit and loss within finance income / finance costs. iii. Net investment hedge The Group hedges its net investment in certain foreign subsidiaries. Accordingly, any foreign exchange differences on the hedging instrument (e.g. borrowings) relating to the effective portion of the hedge is recognised in other comprehensive income as foreign currency translation reserve (‘FCTR’) – within other components of equity, so as to offset the change in the value of the net investment being hedged. The ineffective portion of the gain or loss on these hedges is immediately recognised in profit or loss. The amounts accumulated in equity are included in the profit and loss when the foreign operation is disposed or partially disposed.
• Revenue
Revenue is recognised upon transfer of control of promised products or services to the customer at the consideration which the Group has received or expects to receive in exchange of those products or services, net of any taxes / duties and discounts. When determining the consideration to which the Group is entitled for providing promised products or services via intermediaries, the Group assesses whether the intermediary is a principal or agent in the onward sale to the end customer. To the extent that the intermediary is considered a principal, the consideration to which the Group is entitled is determined to be that received from the intermediary. To the extent that the intermediary is considered an agent, the consideration to which the Group is entitled is determined to be the amount received from the customer; the discount provided to the intermediary is recognised as a cost of sale. The Group has entered into certain multiple-element revenue arrangements which involve the delivery or performance of multiple products, services or rights to use assets. At the inception of the arrangement, all the deliverables therein are evaluated to determine whether they represent distinct performance obligations, and if so, they are accounted for separately. Total consideration related to the multiple element arrangements is allocated to each performance obligation based on their relative standalone selling prices. The stand-alone selling prices are determined based on the prices at which the Group sells equipment and network services separately. Revenue is recognised when, or as, each distinct performance obligation is satisfied. The main categories of revenue and the basis of recognition are as follows: a. Service revenue
Service revenue is derived from the provision of telecommunication services and mobile money services to customers. The majority of the customers of the Group subscribe to the services on a pre-paid basis. Telecommunication service revenues mainly pertain to usage, subscription charges for voice, data, messaging and value added services and customer onboarding charges, which include activation charges. Telecommunication services (comprising voice, data and SMS) are considered to represent a single performance obligation as all are provided over the Group’s network and transmitted as data representing a digital signal on the network. The transmission consumes network bandwidth and therefore, irrespective of the nature of the communication, the customer ultimately receives
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access to the network and the right to consume network bandwidth. Customers pay in advance for services of the Group, these cash amounts are recognised in deferred income on the consolidated statement of financial position and transferred to the consolidated income statement when the service obligation has been performed/when the usage of services becomes remote. The Group recognises revenue from these services over time as they are provided. Revenue is recognised based on actual units of telecommunication services provided during the reporting period as a proportion of the total units of telecommunication services to be provided. Subscription charges are recognised over the subscription pack validity period. Customer onboarding revenue is recognised upon successful onboarding of customer i.e. upfront. Revenues recognised in excess of amounts invoiced are classified as unbilled revenue. If amounts invoiced / collected from a customer are in excess of revenue recognised, a deferred revenue / advance income is recognised. Service revenues also includes revenue from interconnection / roaming charges for usage of the Group’s network by other operators for voice, data, messaging and signaling services. These are recognised upon transfer of control of services being transferred over time. Revenues from long distance operations comprise of voice services and bandwidth services (including installation), which are recognised on provision of services and over the period of respective arrangements. The Group has interconnect agreements with local and foreign operators. This allows customers from either network to originate or terminate calls to each others’ network. Revenue is earned and recognised as per bilateral agreements when other operators’ calls are terminated to the Group’s network i.e. the service is rendered. As part of the mobile money services, the Group earns commission from merchants for facilitating recharges, bill payments and other merchant payments. It also earns commissions on transfer of monies from one customer wallet to another. Such commissions are recognised as revenue on provision of these services by the Group. Costs to obtain or fulfil a contract with a customer The company defers costs to obtain or fulfill contracts with customers over expected average customer life. b. Equipment sales
Equipment sales mainly pertain to sale of telecommunication equipment and related accessories for which revenue is recognised when the control of equipment is transferred to the customer i.e. transferred at a point in time.
• Alternative performance measures (APM)- Exceptional items
Management exercises judgment in determining the adjustments to apply to IFRS measurements in order to derive APMs which provide additional useful information on the underlying trends, performance and position of the Group. This assessment covers the nature of the item being one-off or non-routine, whether the cause of occurrence was within the Group’s control or not and the
scale of impact of that item on reported performance in accordance with the exceptional items policy. To monitor the performance, the Group uses the following APMs:
• ‘Underlying profit before tax’ representing profit before tax for the period excluding the impact of exceptional items,
• ‘Underlying profit after tax’ representing profit after tax for the period excluding the impact of exceptional items and tax on exceptional items.
Exceptional items refer to items of income or expense within the consolidated statement of comprehensive income which are of such size, nature or incidence that their exclusion is considered necessary to explain the performance of the Group and improve the comparability between periods. Reversals of previous exceptional items are also considered as exceptional items. When applicable, these items include network modernisation, share issue expenses, restructuring costs, impairments, initial recognition of deferred tax assets, impact of mergers etc.
• Foreign currency transactions
a. Functional and presentation currency
The items included in financial statements of each of the Group’s entities are measured using the currency of primary economic environment in which the entity operates (i.e. ‘functional currency’). The financial statements are presented in US Dollar which is the functional and presentation currency of the company. b. Transactions and balances Transactions in foreign currencies are initially recorded in the relevant functional currency at the rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the closing exchange rate prevailing as at the reporting date with the resulting foreign exchange differences, on subsequent re-statement / settlement, recognised in the consolidated statement of comprehensive income within finance costs / finance income. Non-monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the exchange rate prevalent, at the date of initial recognition (in case they are measured at historical cost) or at the date when the fair value is determined (in case they are measured at fair value) – with the resulting foreign exchange difference, on subsequent re-statement / settlement, recognised in the profit and loss, except to the extent that it relates to items recognised in the other comprehensive income or directly in equity. The equity items denominated in foreign currencies are translated at historical exchange rate. c. Foreign operations
The assets and liabilities of foreign operations (including the goodwill and fair value adjustments arising on the acquisition of foreign entities) are translated into US Dollar at the exchange rates prevailing at the reporting date whereas their statements of profit and loss are translated into US Dollar at monthly average exchange rates and the equity is recorded at the historical rate. The resulting exchange differences arising on the translation are recognised in other comprehensive income and held in foreign currency translation reserve (‘FCTR’), a component of equity. On
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disposal of a foreign operation (that is, disposal involving loss of control), the component of other comprehensive income relating to that particular foreign operation is reclassified to profit or loss.
• Income-taxes The income tax expense comprises of current and deferred income tax. Income tax is recognised in the profit and loss, except to the extent that it relates to items recognised in the same or a different period, outside profit or loss, in other comprehensive income or directly in equity, in which case the related income tax is also recognised accordingly. a. Current tax Current tax is calculated on the basis of the tax rates, laws and regulations, which have been enacted or substantively enacted as at the reporting date in the respective countries where the Group entities operate and generate taxable income. The payment made in excess / (shortfall) of the respective Group entities’ income tax obligation for the period are recognised in the consolidated statement of financial position under non-current income tax assets / liabilities. Any interest, related to accrued liabilities for potential tax assessments are not included in Income tax charge or (credit), but are rather recognised within finance costs. A provision is recognised for those matters for which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable or based on expected value approach, as applicable. The assessment is based on the judgement of tax professionals within the company supported by previous experience in respect of such activities and in certain cases based on specialist independent tax advice. b. Deferred tax Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values. However, deferred tax is not recognised if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Further, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Moreover, deferred tax is recognised on temporary differences arising on investments in subsidiaries and associate - unless the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets, recognised and unrecognised, are reviewed at each reporting date and assessed for recoverability based on best estimates of future taxable profits. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Income tax assets and liabilities are off-set against each other and the resultant net amount is presented in the consolidated statement of financial position, if and only when, (a) the Group
currently has a legally enforceable right to set-off the current income tax assets and liabilities, and (b) when it relate to income tax levied by the same taxation authority and where there is an intention to settle the current income tax balances on net basis.
• Transactions with non-controlling interests A change in the ownership interest of a subsidiary, without a change of control, is accounted for as a transaction with equity holders. Any difference between the amount of the adjustment to non-controlling interests and any consideration exchanged is recognised in ‘transactions with NCI reserve’, within equity.
• Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the relevant obligation, using a pre-tax rate that reflects current market assessments of the time value of money (if the impact of discounting is significant) and the risks specific to the obligation. The increase in the provision due to un-winding of discount over passage of time is recognised within finance costs. Contingencies A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognised unless virtually certain and disclosed only where an inflow of economic benefits is probable.
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SECTION 11
GLOSSARY
Technical and Industry Terms
Company Related
Average Customers Average Revenue per user (ARPU)
The average number of customers for a period. Derived from the monthly averages during the relevant period. Monthly averages are calculated using the number of customers at the beginning and the end of each month. Average revenue per user per month. This is derived by dividing total revenue during the relevant period by the average number of customers during the period and dividing the result by the number of months in the relevant period.
Basic Earnings Per Share Basic Earnings Per Share is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.
Capital Expenditure (Capex)
An alternative performance measure (non-GAAP). Defined as investment in gross fixed assets (both tangible and intangible, but excluding spectrum and licences) plus capital work in progress (CWIP), excluding provisions on CWIP for the period.
Capital Employed Capital Employed is defined as sum of equity attributable to equity holders of parent, Non-controlling interests ('NCI') and net debt. The definition has been revised to include Non-controlling interests ('NCI') and the related KPIs have been reinstated for all the reported periods.
Cash Profit from Operations before Derivative and Exchange Fluctuation
It is not a GAAP measure and is defined as profit from operating activities before depreciation, amortization and exceptional items adjusted for finance cost (net of finance income) before adjusting for derivative and exchange (gain)/ loss.
Churn
Churn is derived by dividing the total number of customer disconnections during the relevant period by the average number of customers and dividing the result by number of months in the relevant period.
Constant currency Customer Customer Base
The Group has presented certain financial information that is calculated by translating the results for the current financial year and prior financial years at a fixed ‘constant currency’ exchange rate, which is done to measure the organic performance of the Group. Defined as a unique subscriber with a unique mobile telephone number who has used any of Airtel’s services in the last 30 days. The total number of subscribers that have used any of our services (voice calls, SMS, data usage or Mobile Money transaction) in the last 30 days.
Data Average Revenue Per User (ARPU) Data Capacity Data Customer Base
Data ARPU is derived by dividing total data revenue during the relevant period by the average number of Data customers and dividing the result by the number of months in the relevant period. Total data capacity per day for the Region. The total number of subscribers who have consumed at least 1MB on the Group’s GPRS, 3G or 4G network in the last 30 days.
Data customer penetration Data Usage per Customer
The proportion of customers using Data services. Calculated by dividing the data customer base by the total customer base. Calculated by dividing the total MBs consumed on the Group’s network during the relevant period by the average data customer base over the same period and dividing the result by the number of months in the relevant period.
Diluted Earnings per share Earnings per share (EPS)
Diluted EPS is computed by adjusting, the profit for the year attributable to the shareholders and the weighted average number of shares considered for deriving basic EPS, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period. EPS is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.
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EBITDA An alternative performance measure (non-GAAP). Defined as operating profit before depreciation, amortisation,
CSR cost and exceptional items.
EBITDA Margin An alternative performance measure (non-GAAP). Calculated by dividing underlying EBITDA for the relevant period by underlying revenue for the relevant period.
EBIT Free Cash Flow
It is not a GAAP measure and is defined as EBITDA adjusted for depreciation and amortization. An alternative performance measure (non-GAAP). Free cash flow is defined as operating free cash flow less cash interest, cash tax and change in operating working capital.
Francophone Africa Interest Coverage Ratio
One of the Group’s segments called earlier `Rest of Africa`. EBITDA for the relevant period divided by interest on borrowing for the relevant period.
Lease Obligation
Lease obligation represents the present value of the future lease payment obligation for assets taken on finance lease.
Mobile Broadband Base stations
Base stations that carry either 3G and/or 4G capability across all technologies and spectrum bands.
Mobile Money active customers Mobile Money ARPU Mobile Money transaction value Mobile Money transaction value per customer per month
Total number of subscribers who have enacted any Mobile Money usage event in last 30 days. Mobile Money average revenue per user, which is derived by dividing total Mobile Money revenue during the relevant period by the average number of Mobile Money customers and dividing the result by the number of months in the relevant period. Any financial transaction performed on the Airtel Money platform. Calculated by dividing the total Mobile Money transaction value on the Group’s Mobile Money platform during the relevant period by the average number of Mobile Money customers and dividing the result by number of months in the relevant period.
Mobile service Network Towers/Sites
Mobile services are our core telecom services, mainly voice and data services, but also including revenue from tower operation services provided by the Group and excluding Airtel Money services. Physical network infrastructure comprising a base transmission system (BTS) which holds the radio transceivers (TRXs) that define a cell and coordinates the radio link protocols with the mobile device. It includes all ground-based, roof top and in-building solutions.
Net Debt An alternative performance measure (non-GAAP). Defined as the total of long-term borrowings, short term borrowings and lease liabilities, less cash and cash equivalents.
Net Debt to EBITDA (LTM)
It is an alternative performance measure (non-GAAP) and is computed by dividing Net Debt as at the end of the relevant period by EBITDA for preceding last 12 months (from the end of the relevant period). This is also referred to as leverage ratio.
Net Debt to EBITDA (Annualized)
It is an alternative performance measure (non-GAAP) and is computed by dividing net debt as at the end of the relevant period by EBITDA for the relevant period (annualized).
Net Revenue It is an alternative performance measure (non-GAAP) and is defined as total revenue adjusted for IUC (Interconnection Usage charges) charges, cost of goods sold and Airtel Money commission.
Net profit margin Operating company
It is computed by dividing Cash Profit from Operations before Derivative and Exchange Fluctuation by total revenue. Operating company is defined as business units providing telecommunication services and mobile money services across the Group’s footprint.
Operating Profit
A GAAP measure of profitability. Calculated as revenue less operating expenditure (including depreciation & amortisation and operating exceptional items).
Operating Free Cash flow
An alternative performance measure (non-GAAP). calculated by subtracting capital expenditure from underlying EBITDA.
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Profit / (Loss) after current tax expense Reported currency
It is an alternative performance measure (non-GAAP) and is defined as Profit / (Loss) before taxation adjusted for current tax expense. Our reported currency is US dollars. Accordingly, actual periodic exchange rates are used to translate the local currency financial statements of OPCOs into US dollars. Under reported currency the assets and liabilities are translated into US dollars at the exchange rates prevailing at the reporting date whereas the statements of profit and loss are translated into US dollars at monthly average exchange rates.
Return On Capital Employed (ROCE) Return on Equity (ROE)- Pre-Tax
For the full year ended, ROCE is computed by dividing the earnings before interest and tax for the period by
average (of opening and closing) capital employed. Capital employed used for ROCE is defined as sum of Total
Equity and Net Debt. For the quarterly computation, it is computed by dividing the earnings before interest and
tax for the preceding (last) 12 months from the end of the relevant period by average capital employed. Average
capital employed is calculated by considering average of quarterly average for the preceding (last) four quarters
from the end of the relevant period.
For the full year ended, it is computed by dividing profit before tax (including exceptional item) for the period by the closing Total Equity. For the quarterly computations, it is computed by dividing profit before tax (including exceptional items) for the preceding last 12 months from the end of the relevant period by the closing Total Equity for the relevant period.
Return on Equity (ROE)- Post-Tax
For the full year ended, it is computed by dividing net profit for the period by the closing Equity attributable to equity holders of parent. For the quarterly computations, it is computed by dividing net profit for the preceding last 12 months from the end of the relevant period by the closing Equity attributable to equity holders of parent.
Revenue per Site per month
Revenue per Site per month is computed by: dividing the total revenues, excluding sale of goods (if any) during the relevant period by the average sites; and dividing the result by the number of months in the relevant period.
Smartphone Smartphone Penetration
Smartphone is defined as a mobile phone with an interactive touch screen that allows the user to access the internet and additional data applications, in addition to the functionality of a basic phone for making voice calls and sending and receiving text messages. Calculated by dividing the number of smartphone devices in use by the total number of customers.
Total Employees Total on-roll employees as at the end of respective period.
Total MBs on Network Total MBs consumed (uploaded & downloaded) by customers on the Group’s GPRS, 3G and 4G network during the relevant period.
Voice Minutes on Network
The duration in minutes for which customers use the Group’s network for making and receiving voice calls. It is typically expressed over a period of one month. It includes all incoming and outgoing call minutes, including roaming calls.
Voice Minutes of Usage per Customer per month
Calculated by dividing the total number of voice minutes of usage on the Group’s network during the relevant period by the average number of customers and dividing the result by the number of months in the relevant period..
Abbreviations 2G
Second-Generation mobile Technology
3G
4G
ARPU
bn
CSR
EBITDA
EPS
Third-generation mobile technology
Fourth-generation mobile technology
Average revenue per user
Billion
Corporate Social Responsibility
Earnings before interest, tax, depreciation and amortisation
Earnings Per Share
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GAAP
GB
Group
Generally Accepted Accounting Principles
Gigabyte
The Airtel Africa plc, together with its subsidiary undertakings referred to as the ‘Group’
IAS
IFRS
KPIs
KYC
International Accounting Standards
International Financial Reporting Standards
Key performance indicators
Know Your Customer
LTM
Last twelve months
MB
MI
Megabyte
Minority Interest (Non-Controlling Interest)
Mn
Million
OPCO Operating company
pp
P2P
PPE
SMS
TB
UoM
Percentage points
Person to Person
Property, Plant and equipment
Short Messaging Service
Terabyte
Unit of measure
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Written correspondence to be sent to:
Airtel Africa Investor Relations
E-mail address: [email protected]
Website: https://airtel.africa/investors Tel: (+44) 20 7493 9315