Airtel Africa Market Value Declines 4.5% to N5.6trn

Telecom giant, Airtel Africa Plc, valuation dropped by 4.5% to about N5.6 trillion, according to the latest stock market performance. According to data from the Nigerian Exchange, in the last seven trading sessions, the company’s share price had printed at N1,548.70 kobo.

Equities investors’ decision to book profit by selling off its Airtel Africa shareholdings dragged its market price downward to N1,479, and the company has 3.758 billion shares outstanding.

The company’s 9-month earnings performance weakened in the financial year 2022 following foreign exchange losses reported in its key African markets. This appears to have triggered weak buying sentiment as the company valuation has popped near N7 trillion before now.

Airtel Africa Plc.’s pre-tax profit slumps 7.3% in nine months result for the financial year 2022 despite healthy growth in its customer base and revenue, according to a regulatory filing on the Nigerian Exchange, the domestic bourse.

A review of Airtel Africa’s unaudited financial statement for the nine months of 2022 results shows that topline growth was overtaken by rising expenses and net finance costs.

Consequent to some adjustments, the telecom operators’ earnings per share slumped 5.8% in 2022 Africa’s focus telecom operator reported that its profit before tax in the nine months fell by 7.3% to $801 million from $864 million in the comparable year in 2021.

Some analysts expect earnings to improve as the telecom operator plan selective rollout of its 5G network after it announced about $300 billion was used to acquire the spectrum from Nigeria.

“We spent about $500 million or plus in the last nine months to acquired spectrum in a number of countries, of course, Nigeria, with data in Kenya, Tanzania, Zambia and Mozambique”, Segun Ogunsanya told investors conference.

“So we’re not spectrum-shy, but the pricing that they provide commercial opportunities in the country before we decide to put money behind this”.

“… We have acquired spectrum in a number of countries. Yes, we plan to go down. It’s going to be selected in key cities, where we have gone to see no far devices and with no purchasing power to really enjoy the benefits of 5G”. Airtel bought 5G in Nigeria, close to $300 million.

Jaideep Paul, Airtel Africa’s Chief Financial Officer told analysts that about 20% of Nigeria customers use 4G phones. About 15% use 3G phones, and about 65-odd per cent use 2G phones, mainly antique rural areas. #Airtel Africa Market Value Declines 4.5% to N5.6trn