Airtel Africa revenue up 31.5%, pushes Group’s growth in 2012 first quarter

Bharti Airtel reported August 8, 2012 that its revenue for 2012 first quarter ended June 30, grew by 14% over the corresponding period in 2011, marked by growth of 31.5% in Africa.

According to Airtel, its 31.5% Africa revenue growth was driven by “strong operational performance in the last year and favourable currency movements”.

Airtel’s Africa subscriber base rose to 55,855,000 as at June 2012 from 53,140,000 in May 2012, representing 5.1% growth quarter-on-quarter.

However, economic and currency headwinds are presently evident in key markets, as a result of the Eurozone crisis, lower aid and grants, rising inflation and political issues in some African countries.

“With this in mind, the company intensified market operations, advertising, network rollouts, as well as new growth initiatives such as 3G, airtel money and Rwanda,” Bharti Airtel said in a statement.

Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said in Africa, “we are gaining market share, benefiting from the significant investments made in the last two years.”

The Group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin stood at 30.2%. This was depressed due to the adverse regulatory and tax developments in India, enhanced market participation and planned accelerated investments in both India and Africa, the company added.

By Ekow Quandzie