Airtel Africa PLC has reported a period of robust financial expansion, with the company's revenue for the quarter ended March demonstrating significant growth. The telecom giant recorded a remarkable 15.4% increase in reported currency, elevating its total revenue to $1.038 billion, a substantial rise from the $899 million achieved in the previous year's comparable quarter. This impressive growth culminated in a net profit of $154 million after-tax, effectively more than doubling the $77 million recorded in the prior year. This financial success was primarily fueled by a dual strategy of customer base expansion, which grew by 6.9% to 118.2 million, and a healthy 7.7% increase in Average Revenue Per User (ARPU).

Despite this overall positive trajectory, the company's revenue was subjected to the adverse effects of currency devaluations across key markets, notably the Nigerian naira (10%), Zambian kwacha (34%), and Kenyan shilling (5.7%), collectively imposing an adverse impact of $171 million from foreign exchange fluctuations. Conversely, the appreciation of the Central African franc (7.1%) provided a positive counter-effect. The report also highlighted a one-time exceptional gain of $20 million from a settlement in Niger, further contributing to the net profit. While basic Earnings Per Share (EPS) stood at 9.0 cents, it was slightly lower than the 10.3 cents of the previous year, attributed to a lower number of average shares, increased tax charges, and withholding tax on subsidiary dividends.

Geographically, Airtel Africa's underlying revenue growth was widespread. Nigeria's telecom business proved particularly strong, with revenue climbing by 12% to $422 million, up from $377 million in the same quarter last year. Beyond Nigeria, East Africa registered a 15.4% growth, and Francophone Africa led with an impressive 20.9% increase during the quarter. The East Africa business region encompasses Kenya, Malawi, Rwanda, Tanzania, Uganda, and Zambia, while Francophone Africa includes Chad, Democratic Republic of the Congo, Gabon, Madagascar, Niger, Republic of the Congo, and The Seychelles.

An in-depth analysis of service segments reveals double-digit revenue growth across all categories. Mobile services, comprising both Voice and Data, collectively grew by 13.1% to reach $955 million, a significant increase from $844 million in Q4 2020. Voice revenue alone contributed $547 million, growing by 7.2%, supported by a 6.9% increase in voice subscribers to 118.2 million and a 16.4% surge in voice usage per customer, averaging 234 minutes per customer. Regionally, Nigeria was the largest contributor to voice revenue with $422 million, followed by East Africa with $358 million, and Francophone Africa with $260 million.

Data services emerged as a primary growth engine, witnessing a 24.2% increase in revenue to $315 million. This segment's success was driven by an expanding data customer base, which grew to 40.6 million, and a substantial 44.2% year-on-year increase in data usage per customer to 2.6 GB per month. The report attributes this surge to Airtel's ongoing 4G network expansion and increasingly popular data bundle offerings. Data revenue's contribution to the total Group revenue also increased significantly, reaching 29.8% from 27.2% in the prior year. Nigeria's data revenue contribution stood at $152 million, East Africa at $92 million, and Francophone Africa at $70 million.

Mobile Money continues to be Airtel Africa's fastest-growing service segment, now accounting for 10.6% of total revenue. The segment's revenue soared by 32.7% to $110 million, up from $83 million in the previous quarter. This growth was spurred by a 6% increase in average revenue per user, reaching $1.7, and enhanced contributions from merchant payments, cash transactions, peer-to-peer transfers, and mobile services recharge via Airtel Money. The expansion of Airtel's distribution network, including a 30.7% rise in mobile money agents, a 68.8% increase in kiosks, and a 95% expansion in mobile money branches, further bolstered customer base growth. East Africa remains the largest mobile money market, generating $79 million (up 36.4%), with Francophone Africa following at $31 million (up 24.1%).

A significant strategic highlight of the report is the investment received by Airtel Mobile Commerce BV, the company's mobile money operations arm. Airtel Africa has finalized agreements with TPG’s The Rise Fund and Mastercard, who will invest $200 million and $100 million, respectively. These transactions value Airtel Africa’s mobile money business at an impressive $2.65 billion on a cash and debt-free basis. The new investors will hold minority stakes, with Airtel Africa retaining the majority, and the company aims to explore a potential listing of the mobile money business within four years. Furthermore, a new commercial framework agreement has been signed with Mastercard, encompassing card issuance, payment gateway, payment processing, merchant acceptance, and remittance solutions.

The company also stated that the COVID-19 pandemic had no adverse impact on its business during the quarter. Airtel Africa is actively developing a sustainability framework to foster a sustainable future and plans to release its inaugural sustainability report in 2022.