Airtel Africa, one of the leading telecommunication services providers in Africa, has announced plans to buy back $100 million worth of its share from the Nigerian investment market from March this year
The company, listed on the Nigerian Exchange (NGX), gave this hint on Thursday as it announced its 9-month financial report for the period ended December 2023.
The telecom group stated that the share buyback initiative, which is expected to start in March, would be for a trading period of over 12 months.
According to the company, the Board believes that repurchasing its shares is an attractive utilization of its capital in light of the Group’s strong long-term growth outlook.
The management further clarified that share buyback would be executed using its cash reserves and under applicable securities laws and regulations.
Commenting on the company’s financial performance and the share buyback plans, Airtel Africa’s Chief Executive Officer, Olusegun Ogunsanya, said: “In light of our consistent strong operating performance and given current leverage, the Board intends to launch a share buy-back program of up to $100m, starting early March 2024 over 12 months.
“We continue to be well positioned to deliver on the attractive growth opportunities our markets offer and despite the challenge of rising diesel prices, ongoing currency devaluation, and inflationary pressures across some of our markets, we remain focused on margin resilience”, the industry top player added.
The company’s financial statement for the 9-month period ended December 31, 2023 showed that its total customer base grew by 9.1% to 151.2 million even as mobile data and mobile money services penetration continued to rise across its operational areas.
For instance, this led to a 22.4% increase in its data customers to 62.7 million during the review period even as its mobile money customers rose by 19.5% increase to 37.5 million. In financial terms, the board reported that the company’s mobile money transaction value increased by 41.3% in constant currency, with Q3’ 23 annualized transaction value of $116 billion in reported currency.
The group’s CEO further recalled: “We remain focused on the execution of our growth strategy and, combined with our strong operational execution, this has ensured that we continue to see sustained, positive growth momentum across the business, despite the inflationary and currency headwinds.
“Demand remains resilient, highlighting the vital nature of the voice, data, and mobile money services we provide to our customers across the region, and has resulted in a strong 20.2% constant currency revenue growth over the period, with an increase in EBITDA margins. This strong operating performance has limited the impact that currency movements have had on the Group.
“In this regard, whilst further currency devaluation, particularly in Nigeria, has weighed on our reported financial performance, it will not affect the execution of our growth plans”, he added.
