Motilal Oswal: Airtel Africa Puts Up A Subdued Performance As Covid-19 Impacts Voice Usage 
A man rides a bicycle past an advertisement for Airtel Ghana Ltd. in Accra, Ghana. (Photographer: Ty Wright/Bloomberg)

Motilal Oswal: Airtel Africa Puts Up A Subdued Performance As Covid-19 Impacts Voice Usage 

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Motilal Oswal Report

Airtel Africa’s revenue/Ebitda decreased 5%/6% QoQ to $851 million/$368 million while margins declined 50 basis point QoQ to 43.2%.

On constant currency basis, revenue/Ebitda declined 1.6%/1.3% QoQ to $856 million /$377 million (below estimate 10%/11% – approximately 6% impact was due to shift in CC rates from March 2019 to March 2020).

However, margins were up 10 basis point QoQ to 44%. The revenue decline was led by 4% QoQ average revenue per user decrease to 2.6 U.S. dollar (versus 2.7 U.S. dollar in Q4 FY20), which was partially offset by 0.8% growth is net subscriber base to 111.5 million.

Reported profit after tax was down 26% QoQ to $57 million. In CC terms, it fell 44% QoQ to $80 million, mainly on account of lower revenue and higher taxes of $61 million in Q1 FY21 (versus $27 million in Q4 FY20).

Airtel Africa’s capex reduced to $66 million in Q1 FY21 (versus $246 million in Q4 FY20) due to the lockdown.

Subsequently, its operating free cash flow increased to $310 million (versus $136 million in Q4 FY20).

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Motilal Oswal Airtel Africa Company Update.pdf

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