Airtel Africa on Tuesday reported a 20.9% decline in its net profit to $103 million for the third quarter ended December 2019 on a constant currency basis.
The firm had posted a net profit of $133 million in the September-December 2018 quarter, it said. Revenue for the quarter stood at $883 million, up 14.2% on constant currency basis, helped by a broad-based growth across voice, data and mobile money.
In a statement, Airtel Africa added that the recent $3 billion fund raise by parent Bharti Airtel, following the October 24, 2018the Supreme Court judgment on AGR, had removed uncertainty over the group’s ability to continue as a going concern.
“...the group’s intermediate parent company has successfully raised approximately $3 billion of additional capital through a combination of qualified institutional equity placement and convertible bond offerings. In the director’s opinion the execution of these activities has reduced the level of uncertainty about the ability of the group’s intermediate parent company to comply with the judgment,” it said.
It added that as a result, the directors have concluded that the previously highlighted material uncertainty around the group’s ability to continue as a going concern no longer exists and that the group has adequate committed and non-committed facilities to operate as a going concern.
Airtel Africa CEO Raghunath Mandava said, “Our financial performance in Q3 was strong as we delivered double digit revenue growth in both reported and constant currency...Revenue growth continues to be broad-based across voice, data and mobile money. We have continued to add customers, up 9.4% this quarter, contributing to an increase in voice revenue.”
