Airtel Africa sees increase in FY revenue, remains bullish on Africa’s outlook

Airtel Africa has announced a significant 11.2% revenue increase for the 2019-2020 fiscal year, showcasing robust financial performance despite the challenges posed by the global COVID-19 pandemic. In an exclusive interview with CNBC Africa, CEO Raghunath Mandava shed light on the company's stellar growth in revenue, EBITDA margins, and free cash flow. Mandava expressed confidence in Airtel Africa's continued success, emphasizing the resilience of the company's business model in navigating the uncertainties of a post-pandemic environment. The CEO highlighted key drivers behind the company's impressive revenue growth, including expanding customer base, enhanced data services, and the burgeoning mobile money market in Africa. Airtel Africa's customer additions of 11.8% have facilitated growth in both voice and data services, with a substantial shift towards higher-speed networks leading to increased data consumption. Mandava also underscored the critical role of mobile money services in driving overall revenue growth, citing a 37% increase in this sector. As the continent grappled with the COVID-19 crisis, Airtel Africa swiftly responded by ensuring the continuity of essential services, prioritizing the safety of employees and customers, and supporting various initiatives aimed at combating the pandemic. Mandava commended the measured and scientific approach taken by African governments in managing the crisis and reiterated Airtel Africa's commitment to aiding in the fight against COVID-19. Despite the diverse market conditions across the 14 countries where Airtel Africa operates, Mandava noted that the company's strategy remains consistent in promoting digital integration and financial inclusion. Airtel Africa's focus on expanding data and 4G networks, along with substantial investments in fiber infrastructure, has positioned the company as a key player in bridging the digital divide and empowering local economies. Looking ahead, Mandava highlighted the vast opportunities present in the African telecom sector, driven by a youthful population, rising mobile penetration, and the growing demand for enterprise solutions. Airtel Africa aims to capitalize on these favorable dynamics by leveraging its resilient business model to sustain growth and meet evolving consumer needs. The CEO expressed optimism regarding the telecom sector's evolution over the next five years, foreseeing a shift towards increased data demand and digital transformation. As mobile networks become increasingly integral to the continent's economic development, Airtel Africa stands poised to play a pivotal role in driving this digital revolution.