AIRTEL AFRICA : FULL YEAR RESULTS UP TO 31 MARCH 2024

Airtel Africa plc

Results for year ended 31 March 2024

09 May 2024

Delivering a resilient performance with strong underlying momentum, despite a volatile macroeconomic environment

Operating highlights

• Total customer base grew by 9.0% to 152.7 million. We continue to bridge the digital divide with a 17.8% increase in data customers to 64.4 million and a 20.8% increase in data usage per customer.
• Mobile money subscriber growth of 20.7% reflects our continued investment into distribution to drive increased financial inclusion across our markets. Transaction value increase of 38.2% in constant currency with annual transaction value of over $112bn in reported currency. Increased transactions across the ecosystem reflects the enhanced range of offerings and increased customer adoption, supporting constant currency ARPU growth of 8.6%.
• Continued network investment to support an enhanced customer experience and drive increased 4G coverage. 95% of sites now 4G operational, facilitating a 42.3% increase in 4G customers over the year.

Financial performance

• Revenue in constant currency grew by 20.9% with growth accelerating to 23.1% in Q4'24. Nigerian constant currency revenue growth accelerated to 34.2% in Q4'24 despite the challenging backdrop. Reported currency revenues declined by 5.3% to $4,979m reflecting the impact of currency devaluation, particularly in Nigeria.
• Across the group mobile services revenue grew by 19.4% in constant currency, driven by voice revenue growth of 11.9% and data revenue growth of 29.2%. Mobile Money revenue grew by 32.8% in constant currency, with a continued strong performance in East Africa.
• EBITDA margins remained resilient at 48.8% despite the currency headwinds and inflationary pressure on our cost base. Constant currency EBITDA increased 21.3% with reported currency EBITDA declining 5.7% to $2,428m. Q4'24
  EBITDA margins of 46.5% were impacted by the lower contribution of Nigeria following the Q4'24 naira devaluation and rising energy costs across a number of markets.
• Loss after tax was $89m, primarily impacted by significant foreign exchange headwinds, resulting in a $549m exceptional loss net of tax following the Nigerian naira devaluation in June 2023 and Q4'24, and the Malawian kwacha devaluation in November 2023.
• Basic EPS of negative (4.4 cents) compares to 17.7 cents last year. EPS before exceptional items was 10.1 cents, a decline of 25.9%. Both EPS before exceptional items and basic EPS were primarily impacted by significant derivative and foreign exchange losses during the year. EPS before exceptional items and derivative and foreign exchange losses was 18.3 cents compared to 20.5 cents in the prior period.

Capital allocation

• Capex was broadly flat at $737m and was below our guidance largely due to a deferral in data centre investments. In addition, we invested $152m in licence renewal and spectrum acquisitions, including $127m for the Nigerian 3G licence renewal.
• Leverage of 1.4x on 31 March 2024 was flat from the previous year. We have around $680m of cash available at HoldCo, to be utilized to fully repay the remaining $550m debt, falling due in May 2024.
• The Board has approved a share buyback programme of up to $100m, over a period of up to 12 months. On 1 March 2024, we announced the commencement of the first tranche of this buyback up to a maximum of $50m. During March 2024, the company purchased 7.4 million shares for a total consideration of $9m.
• The Board has recommended a final dividend of 3.57 cents per share, making the total dividend for FY24 5.95 cents per share.

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Sustainability strategy

• Our landmark five-year $57m partnership with UNICEF launched across 13 markets providing access to educational resources, free of charge, on our way to transforming the lives of over one million children through digital learning by 2027.
• Partnered with the Government of Rwanda to launch the ConnectRwanda 2.0 initiative which aims to provide more than a million people with affordable smartphones to bridge the digital divide.

Olusegun Ogunsanya, Chief executive officer, on the trading update:

"The consistent deployment of our 'Win with' strategy supported the acceleration in constant currency revenue growth over the recent quarters which has reduced the impact of currency headwinds faced across most of our markets. This strong revenue performance is a reflection not only of the opportunity that is inherent across our markets, but also the resilience of our affordable offerings despite the inflationary pressure many of our customers have experienced.

Facilitating this growth has been, and will remain, fundamental to our performance. The investment in our distribution to catalyse growth, and the technology required to support this growth has been key. Furthermore, our rigorous approach to de-risking our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business. Key initiatives include the reduction of US dollar debt across the business and the accumulation of cash at the HoldCo level to fully cover the outstanding debt due. We will continue to focus on reducing our exposure to currency volatility. At the beginning of March, we launched our first buyback programme reflecting the strength of our financial position.

The growth opportunity that exists across our markets remains compelling, and we are well positioned to deliver against this opportunity. We will continue to focus on margin improvement from the recent level as we progress through the year.

I want to say a particular thank-you to our customers, partners, governments and regulators for their support and our employees for their unrelenting contribution to the business. Our purpose of transforming lives across Africa will continue to be our highest priority.

GAAP measures (Year ended)

				Mar-24			Mar-23			Reported
	Description							currency
				$m			$m			change
	Revenue		4,979		5,255		(5.3%)
	Operating profit		1,640		1,757		(6.7%)
	(Loss)/Profit after tax		(89)		750		(111.9%)
	Basic EPS ($ cents)		(4.4)		17.7		(124.9%)

Net cash generated from operating activities

2,259

2,229

1.4%

Alternative performance measures (APM) 1

(Year ended)

				Mar-24			Mar-23		Reported			Constant
	Description						currency			currency
				$m			$m		change			change
	Revenue		4,979		5,255	(5.3%)		20.9%
	EBITDA		2,428		2,575	(5.7%)		21.3%
	EBITDA margin		48.8%		49.0%		(22) bps		14 bps
	EPS before exceptional items ($ cents)		10.1		13.6	(25.9%)

Operating free cash flow

1,691

1,827

(7.4%)

(1) Alternative performance measures (APM) are described on page 50, with a reconciliation on page 53.

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About Airtel Africa

Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.

Airtel Africa offers an integrated suite of telecoms solutions to its subscribers, including mobile voice and data services as well as mobile money services, both nationally and internationally. We aim to continue providing a simple and intuitive customer experience through streamlined customer journeys.

Enquiries
Airtel Africa - Investor Relations
Alastair Jones	[phone]
[e-mail]	[phone]
Hudson Sandler
Nick Lyon
Emily Dillon
[e-mail]	[phone]

Conference call

Management will host an analyst and investor conference call at 13:00pm UK time (BST), on Thursday 09th May 2024, including a Question-and-Answer session.

To receive an invitation with the dial in numbers to participate in the event, please register beforehand using the following link:

Conference call registration link

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Key consolidated financial information

							Year ended									Quarter ended
	Description			Unit of
										Reported			Constant									Reported		Constant
			measure
						Mar-24			Mar-23		currency			currency			Mar-24			Mar-23			currency		currency
												change %			change %									change %		change %
	Profit and loss summary
	Revenue 1		$m		4,979			5,255	(5.3%)		20.9%			1,118		1,341		(16.6%)	23.1%
	Voice revenue		$m		2,179			2,491	(12.5%)		11.9%			472		619		(23.8%)	13.7%
	Data revenue		$m		1,734			1,787	(3.0%)		29.2%			391		469		(16.5%)	31.1%
	Mobile money revenue 2		$m		837			692	21.1%		32.8%			206		176		17.0%	35.5%
	Other revenue		$m		417			437	(4.6%)		23.4%			97		116		(16.5%)	25.7%
	Expenses		$m		(2,572)			(2,694)	(4.5%)		20.9%			(600)		(686)		(12.6%)	26.3%
	EBITDA 3		$m		2,428			2,575	(5.7%)		21.3%			520		659		(21.0%)	19.3%
	EBITDA margin	%			48.8%			49.0%		(22) bps		14 bps		46.5%		49.1%			(259) bps		(148) bps
	Depreciation and amortisation		$m		(788)			(818)	(3.6%)		23.3%			(173)		(220)		(21.0%)	17.9%
	Operating profit		$m		1,640			1,757	(6.7%)		20.3%			347		439		(21.0%)	20.0%
	Other finance cost - net of		$m		(896)			(723)	24.0%						(142)		(204)		(30.3%)
	finance income
	Finance cost - exceptional items 4		$m		(807)			-	0.0%						(323)		-		0.0%
	Total finance cost 5		$m		(1,703)			(723)	(135.6%)						(465)		(204)		127.9%
	(Loss)/Profit before tax		$m		(63)			1,034	(106.1%)						(118)		233		(150.8%)
	Tax		$m		(284)			(445)	(36.1%)						(77)		(105)		(26.3%)
	Tax - exceptional items 6		$m		258			161	60.1%						104		99		5.5%
	Total tax credit/(charge)		$m		(26)			(284)	(90.8%)						27		(6)		(548.0%)
	(Loss)/Profit after tax		$m		(89)			750	(111.9%)						(91)		227		(140.2%)
	Non-controlling interest		$m		(76)			(87)	(12.7%)						(13)		(32)		(58.9%)

Profit attributable to owners of the company - before exceptional items

$m

380	512	(25.8%)

115 106 8.1%

(Loss)/Profit attributable to	$m		(165)		663	(124.9%)			(104)		195	(153.2%)
owners of the company
EPS - before exceptional items	cents		10.1		13.6	(25.9%)			3.0		2.8	7.8%
Basic EPS	cents		(4.4)		17.7	(124.9%)			(2.8)		5.2	(153.2%)
Weighted average number of	million		3,751		3,752	(0.0%)			3,750		3,750	0.0%
shares
Capex	$m		737		748	(1.4%)			243		291	(16.5%)
Operating free cash flow	$m		1,691		1,827	(7.4%)			277		368	(24.6%)
Net cash generated from operating	$m		2,259		2,229	1.4%			493		518	(4.7%)
activities
Net debt	$m		3,505		3,524				3,505		3,524
Leverage (net debt to EBITDA)	times		1.4x		1.4x				1.4x		1.4x
Return on capital employed	%		23.0%		23.3%	(31) bps			23.9%		23.4%	48 bps
Operating KPIs
ARPU	$		2.8		3.3	(13.3%)	10.7%		2.4		3.2	(23.8%)	12.5%
Total customer base	million		152.7		140.0	9.0%			152.7		140.0	9.0%
Data customer base	million		64.4		54.6	17.8%			64.4		54.6	17.8%

Mobile money customer base

million

38.0 31.5 20.7%

38.0 31.5 20.7%

1. Revenue includes inter-segment eliminations of $188m for the year ended 31 March 2024 and $152m for the prior year.
2. Mobile money revenue post inter-segment eliminations with mobile services was $649m for the year ended 31 March 2024, and $540m for the prior year.
3. EBITDA includes other income of $21m for the year ended 31 March 2024 and $13m for the prior period.
4. Exceptional items of $807m for the year ended 31 March 2024 relates to derivative and foreign exchange losses following the devaluation of the Nigerian naira ($770m) in June 2023 and three-month period ended 31 March 2024 as well as Malawian kwacha devaluation in November 2023 ($37m), respectively.
5. Please refer to the commentary on finance costs as part of 'Financial review' section on page 5.
6. Tax exceptional items of $258m for the year ended 31 March 2024 reflects the gain corresponding to the $807m exceptional item referred to in point 4 above. $161m exceptional tax gain in the prior period reflects the recognition of deferred tax credit in Kenya, Democratic Republic of the Congo & Tanzania.

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Financial review for the year ended 31 March 2024

Revenue

Group revenue in reported currency declined by 5.3% to $4,979m, with constant currency growth of 20.9%, which accelerated to 23.1% in Q4'24. Reported currency revenue growth was particularly impacted by significant currency devaluations in Nigeria, Malawi, Zambia and Kenya. Group mobile services revenue grew by 19.4% in constant currency, with voice revenue growth of 11.9% and data revenues growing 29.2%. In Nigeria, constant currency mobile services revenues increased by 25.8%, whilst East Africa saw 21.5% growth and Francophone Africa increased by 9.2%. Mobile money revenue grew by 32.8% in constant currency, primarily driven by continued strong growth in East Africa.

EBITDA

Reported currency EBITDA declined by 5.7% to $2,428m reflecting the impact of currency devaluation over the period, particularly in Nigeria. In constant currency, EBITDA increased to 21.3% with EBITDA margins of 48.8%, up by 14bps. Reported currency EBITDA margins of 48.8% remained resilient despite the currency and inflationary headwinds faced in several markets. Mobile services EBITDA increased 18.8% in constant currency as operating leverage and cost efficiencies continued to limit the FX headwinds and inflationary pressure over the year. Mobile money EBITDA margins of 52.1% increased 234bps in constant currency, supporting growth of 39.0%.

Nigeria currency devaluation impact on revenue and EBITDA

During the period, the Nigerian naira devalued significantly from 461 per US dollar in March 2023 to 1,303 per US dollar in March 2024. The impact of the Nigerian naira devaluation on reported revenue and EBITDA for the year ending 31 March 2024 was $1,042m and $554m respectively. As the currency devaluation occurred at various stages during the year, revenue and EBITDA in the reporting period does not reflect the full year impact. As a result, the next financial year reported currency results will continue to reflect the currency headwinds experienced during FY'24. If the closing rate of 1,303 NGN/USD were to be used to consolidate the results of the Group for the year ended 31 March 20241, reported revenue would have declined further by $603m to $4,376m (16.7% YoY decline) as opposed to the 5.3% decline reported. Similarly, EBITDA would have declined further by $324m to $2,104m (18.3% YoY decline) as opposed to the 5.7% decline reported, with an EBITDA margin of 48.1% (Q4'24: 46.4%).

For future sensitivity on currency devaluation, refer to the Risk section on page 21.

Finance costs

Total finance costs for the year ended 31 March 2024 was $1,703m, primarily impacted by $1,259m of derivative and foreign exchange losses (reflecting the revaluation of US dollar balance sheet liabilities and derivatives) as a result of the currency devaluation primarily in Nigeria and Malawi. Finance costs excluding derivative and foreign exchange losses increased from $385m to $444m in the current period primarily on account of shift of foreign currency debt to local currency debt in the operating entities carrying a higher average interest rate.

Out of $1,259m derivative and foreign exchange losses, $807m was classified as an exceptional item as per the company's policy on exceptional items2 of which $770m is related to Nigerian naira devaluation and $37m is related to Malawian kwacha devaluation.

(Loss)/Profit before tax

Loss before tax at $63m during the year ended 31 March 2024 was largely impacted by the $807m exceptional losses discussed above. Excluding these exceptional items, profit before tax for year ended 31 March 2024 was $744m.

1. Relates to currency translation impact only and reflects no change to the operating performance of the Nigerian business.
2. Refer 'Note on exceptional items' on Page 55

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Taxation

Total tax charges were $26m as compared to $284m in the prior period. Total tax charges reflected an exceptional gain of $258m on account of the Nigerian naira and Malawian kwacha devaluation during the current period compared with recognition of deferred tax credit of $161m in Kenya, Democratic Republic of the Congo and Tanzania in the prior period, hence a higher exceptional gain of $97m. Tax charges excluding exceptional items were $284m compared to $445m in the prior period.

Tax charge of $26m during the year ended 31 March 2024, despite a loss before tax of $63m was due to change in profit mix between various OpCos and withholding taxes on dividends by subsidiaries.

(Loss)/Profit after tax

Loss after tax of $89m during the year ended 31 March 2024 was primarily impacted by the $549m net of tax impact of the exceptional derivative and foreign exchange losses. Excluding these exceptional items, profit after tax for year ended 31 March 2024 was $460m.

Basic EPS

Basic EPS at negative 4.4 cents during the year ended 31 March 2024 was impacted by the derivative and foreign exchange losses as explained above. EPS before exceptional items and derivative and foreign exchange losses for the year ended 31 March 2024 was 18.3 cents.

Leverage

Leverage of 1.4x as on 31 March 2024 was broadly flat from the previous year despite our significant investments and the currency devaluation in several markets which resulted in lower reported currency EBITDA as compared to the previous year. The remaining debt at HoldCo is now $550m, falling due in May 2024. Cash at HoldCo was around $680m at the end of the period and the Group is fully geared to repay the HoldCo debt when due using this cash.

GAAP measures

Revenue

Reported revenue of $4,979m, declined by 5.3% in reported currency, and grew by 20.9% in constant currency driven by both customer base growth of 9.0% and ARPU growth of 10.7%. The gap between constant currency and reported currency revenue growth was due to the average currency devaluations between the periods, mainly in the Nigerian naira, the Malawi kwacha, the Zambian kwacha , and the Kenyan shilling, partially offset by an appreciation in the Central African franc.

Reported mobile services revenue at $4,338m, declined 8.1%, and grew by 19.4% in constant currency. Constant currency growth was driven by growth of 25.8% in Nigeria, 21.5% in East Africa and 9.2% in Francophone Africa, respectively. Mobile money revenue grew by 21.1% in reported currency. In constant currency, mobile money revenue grew by 32.8%, driven by revenue growth in East Africa of 36.0% and Francophone Africa of 22.3%.

Operating profit

Operating profit in reported currency declined by 6.7% to $1,640m as currency headwinds offset strong revenue growth and continued improvements in operating efficiency across the Group.

Total finance costs

Total finance costs for the year ended 31 March 2024 of $1,703m, increased $980m over the prior period. Finance costs were primarily impacted by $807m of exceptional derivative and foreign exchange losses arising in Nigeria and Malawi, following the significant currency devaluation during the period.

The Group's effective interest rate increased to 10.1% compared to 7.7% in the prior period, largely driven by higher local currency debt at the OpCo level, in line with our strategy of localising debt at OpCo.

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Taxation

Total tax charges of $26m declined from $284m in the prior period. Total tax charges reflected an exceptional gain of $258m on account of the Nigerian naira and Malawian kwacha devaluation during the current period, compared to an exceptional gain of $161m in the prior period on account of deferred tax credits in Kenya, Democratic Republic of the Congo and Tanzania. As a result, total tax charges reflected a higher exceptional gain of $97m in the current period. The tax charge of $284m is net of a tax gain of $30m arising from the reversal of deferred tax liability on account of a reduction of undistributed retained earnings of Nigeria. This reduction is an indirect consequence of the impact of the Nigerian naira devaluation.

(Loss)/Profit after tax

(Loss) after tax of $89m during the year ended 31 March 2024 was primarily impacted by the $549m net of tax impact of the exceptional derivative and foreign exchange losses.

Basic EPS

Basic EPS at negative 4.4 cents during the year ended 31 March 2024 was impacted by the derivative and foreign exchange losses as explained above.

Net cash generated from operating activities

Net cash generated from operating activities was $2,259m, up 1.4% as compared to $2,229m in the prior period.

Alternative performance measures3

EBITDA

EBITDA of $2,428m, declined by 5.7% in reported currency, and increased by 21.3% in constant currency. Growth in constant currency EBITDA was led by revenue growth and supported by continued improvement in operating efficiencies which limited the impact that inflationary cost pressures had in a number of markets. The EBITDA margin declined by 22 basis points in reported currency to 48.8%.

The gap between constant currency and reported currency EBITDA growth was due to the currency devaluations between the periods, mainly in the Nigerian naira, the Malawi kwacha, the Zambian kwacha, and the Kenyan shilling, partially offset by an appreciation in the Central African franc.

Tax

The effective tax rate was 38.4%, compared to 38.8% in the prior period, largely due to profit mix changes amongst the OpCos. The effective tax rate is higher than the weighted average statutory corporate tax rate of approximately 32%, largely due to the profit mix between various OpCos and withholding taxes on dividends by subsidiaries.

Exceptional items

The exceptional item of $807m is on account of derivative and foreign exchange losses following the devaluation of the Nigerian naira in June 2023 and Q4'24, and the Malawian kwacha in November 2023. This has resulted in an exceptional tax gain of $258m as compared an exceptional tax gain of $161m in the prior period on account of deferred tax credits in Kenya, Democratic Republic of the Congo and Tanzania.

EPS before exceptional items

EPS before exceptional items of 10.1 cents declined by 25.9% compared to 13.6 cents in the prior period primarily impacted by the significant derivative and foreign exchange losses during the year. EPS before exceptional items and derivative and foreign exchange losses was 18.3 cents compared to 20.5 cents in the prior period.

Operating free cash flow

Operating free cash flow was $1,691m, lower by 7.4%, as a result of lower EBITDA during the period partially offset by lower capex in current period.

3 Alternative performance measures (APM) are described on page 50, with a reconciliation on page 53.

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Other significant updates

Commencement of share buy-back programme

On 1 February 2024, the company announced that in light of the increase in HoldCo cash, current leverage and the consistent strong operating cash generation, the Board intended to launch a share buy-back programme of up to $100m, over a 12 month period. The Board believes that repurchasing its own shares is an attractive use of its capital in light of the Group's strong long term growth outlook. The programme will be executed using its cash reserves and in accordance with applicable securities laws and regulation.

On 1 March 2024, Airtel Africa plc announced the commencement of its share buyback programme, further to the announcement on 1 February 2024 following the publication of its nine-month results ended 31 December 2023. The share buy-back programme is expected to be phased over two tranches, with the first tranche commencing on 1 March 2024 and anticipated to end on or before 31 August 2024. The first tranche will amount to a maximum of $50 million, with Airtel Africa entering into an agreement with Citigroup Global Markets Limited to conduct the buy-back on its behalf. During March 2024, the company purchased 7.4 million shares for a total consideration of $9m.

Directorate changes

On 6 February 2024, Airtel Africa plc announced that John Danilovich has informed the Board of his intention to retire as an independent non-executive director of Airtel Africa plc at the conclusion of this year's AGM in July 2024.

On 30 October 2023 and 31 October 2023 Kelly Bayer Rosmarin and Doug Baillie, respectively retired as non-executive directors of Airtel Africa plc.

On 9 May 2024, Airtel Africa plc announced the appointment of Paul Arkwright, CMG, as an independent non-executive director of the Company, with immediate effect.

Nigerian naira devaluation

On 14 June 2023, the Central Bank of Nigeria (CBN) announced changes to the operations in the Nigerian Foreign Exchange (FX) market, including the abolishment of segmentation, with all segments now collapsing into the Investors and Exporters (I&E) window and the reintroduction of the 'Willing Buyer, Willing Seller' model at the I&E window. As a result of the CBN decision, the US dollar has appreciated against the Nigerian naira in the I&E window. The market expectation is that the new foreign currency policy and subsequent realignment of the several market exchange rates will provide greater US dollar liquidity over time and help to alleviate the challenges faced in the last few years to access US dollars in the market.

On 29 January 2024, the FMDQ Securities Exchange Limited ('FMDQ') notified the market of its amendment to the methodology applied for the computation of the Nigerian Autonomous Foreign Exchange Fixing ('NAFEX') being the exchange rate used to consolidate the results of Airtel Africa's Nigeria region. This development further impacted the Nigerian naira during the period. The closing NAFEX rate as of 31 March 2024, was NGN1,303 per US dollar.

The impact of both these events resulted in derivative and foreign exchange losses of $770m in the year which were classified as exceptional.

The Group continues to invest in Nigeria to enable it to capture the growth opportunity. This continued investment will facilitate growth, drive continued digitalisation across the country, facilitate economic progress and transform lives across Nigeria.

Retirement of Airtel Africa plc CEO and appointment of Successor

On 2 January 2024, Airtel Africa plc announced the retirement of Chief Executive Officer Olusegun "Segun" Ogunsanya and the appointment of Sunil Taldar, who joined Airtel Africa in October 2023 as Director - Transformation, as Chief Executive Officer (CEO). Following a transition period, Sunil Taldar will be appointed to the Board as an Executive Director and assume the role of CEO on 1 July 2024, at which time Segun will retire from the Board and the Company.

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Launch of Nxtra by Airtel

In December 2023, Airtel Africa launched Nxtra by Airtel ("Nxtra"), a new data centre business founded on a commitment to meet the continent's growing needs for trusted, and sustainable data centre capacity and to serve the fast-growing African digital economy. It aims to build one of the largest network of data centres in Africa with high-capacity data centres in major cities located strategically across Airtel Africa's footprint, complementing its existing edge sites. Nxtra's ambition will allow it to serve the growing need of African enterprises and its data centre infrastructure will be designed to host the next generation of computing, while providing multi-MW capacity in a phased manner.

Nigerian Communications Commission directive on subscriber registration compliance

In December 2023, the Nigerian Communications Commission (NCC) informed Airtel Nigeria, in an industry-wide directive, to undertake full network barring of all SIMs that have failed to submit their National Identity Numbers (NIN) on or before 28 February 2024. Likewise, customers that have submitted their NINs, but remain unverified are to be barred by 31st July 2024 (earlier deadline was 15 April 2024). Furthermore, guidelines were issued whereby no customer can have more than 4 active SIMs and all such excess SIMs be barred by 29 March 2024. This directive is part of the ongoing Federal Government NIN-SIM harmonisation exercise requiring all subscribers to provide valid NIN information to update SIM registration records.

Airtel Nigeria has complied with the directives issued and barred all customers without NINs as well as customers with more than 4 active SIMs which had a very negligible impact on revenue. Currently we are engaging with approximately 5.7m customers whose NIN are yet to be verified. Since the directive was issued in December 2023, 7.9m customers have already been verified. We continue to engage with the NCC and work closely with the relevant authorities to facilitate and accelerate the verification process to minimise the risk of service disruption to these customers, whilst also limiting the revenue impact from our compliance to the directive issued.

Devaluation of the Malawian Kwacha by the Reserve Bank of Malawi

In November 2023, the Reserve Bank of Malawi (RBM) announced structural changes to the foreign exchange market with its decision to adjust the exchange rate from selling rate of MWK 1,180 to a selling rate of MWK 1,700 to the US dollar with effect from 9 November 2023.

As part of the structural changes, RBM started authorizing dealer banks to freely negotiate exchange rates to trade with their clients and amongst themselves, notwithstanding any limitations previously in place.

The devaluation resulted in a foreign exchange loss of $37m and is classified as exceptional.

Uganda Initial Public Offering (IPO)

On 29 August 2023, Airtel Uganda Limited issued a prospectus in relation to the offer for sale of 8,000,000,000 ordinary shares, representing 20% of Airtel Uganda Limited on the Uganda Stock Exchange (USE) in-line with the 20% minimum public listing obligation for all National Telecom Operators under the current Uganda Communications (Fees & Fines) (Amendment) Regulations 2020. The issued shares of Airtel Uganda were listed on the Main Investment Market Segment of the USE on 7 November 2023 at UGX100 per share.

On completion of the IPO in November 2023, 4.4bn shares (10.89% of Airtel Uganda's total share capital) were transferred to minority shareholders, whilst the entire 40bn shares began trading on the Main Investment Market Segment of the USE. Airtel Uganda received a 3-year waiver from the Uganda Securities Exchange from the requirement to transfer the remaining 9.11% required to meet the 20% shareholding listing requirement.

Nigeria 2100 MHz spectrum renewal

On 9 May 2023, the Group announced that its Nigerian subsidiary, Airtel Networks Limited ('Airtel Nigeria'), had made a payment of NGN58.7bn ($127.4m), payable to the Nigerian Communications Commission (NCC), to renew its 2x10MHz 2100 MHz spectrum licence, which will be valid for a period of 15 years following the expiry of the previous licence (30 April 2022).

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This investment to renew the licence reflects our continued confidence in the opportunity inherent across the Nigerian market, supporting the local communities and economies through furthering digital inclusion and connectivity.

Uganda spectrum

The regulator had previously issued an invitation to apply for spectrum in various bands (700, 800, 2300, 2600, 3300, 3500, etc). On 26 June 2023, the Uganda Communications Commission confirmed that Airtel Uganda Limited had qualified for the award of 10 MHz of 800 MHz and 100 MHz of 3500 MHz spectrum. There is no upfront payout for spectrum but, instead, there is an annual payout of $1.2m for a period of 17 years, which is the validity period for the spectrum.

Share capital reduction

On 15 August 2023, Airtel Africa announced the cancellation and extinction of all its deferred shares of USD 0.50 nominal value each (the 'capital reduction'), which was approved by shareholders at the annual general meeting of the Company held on 4 July 2023. The cancellation and extinction was sanctioned by the High Court of England and Wales (the 'High Court'). The effect of the capital reduction is to create additional distributable reserves which will be available to the company going forward and may be used to facilitate returns to shareholders in the future, whether in the form of dividends, distributions or purchases of the company's own shares.

The company confirms that, following the capital reduction, the issued share capital of the company will be 3,758,151,504 ordinary shares of USD 0.50 nominal value each, carrying one vote each. There are no shares held in treasury. The total voting rights in the company therefore will be 3,758,151,504.

Dividend payment timetable

The board has recommended a final dividend of 3.57 cents for the financial year ended 31 March 2024, payable on 26 July 2024 to shareholders recorded in the register at the close of business on 21 June 2024.

Last day to trade shares cum dividend	19 June 2024
Shares commence trading ex-dividend	20 June 2024
Record date	21 June 2024
Last date for currency election	8 June 2024
Payment date	26 July 2024

Information on additional KPIs

An investor relations pack with information on the additional KPIs and balance sheet is available to download on our website at airtel.africa/investors

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