Below is a detailed overview of Airtel Africa Plc’s performance during the first quarter of its fiscal year.

Revenue Growth Offset by FX Losses

In its recently released Q1:2024 financial result, Airtel Africa Plc (AIRTELAFRI) posted growth in its consolidated topline in reporting currency. During the period, markets in Nigeria and East Africa noted significant currency devaluations which depressed AIRTELAFRI’s Opco’s constant currency growth levels upon a Group consolidation.

Solid Operating Margins: Delayed Impact of Naira FX Devaluation

In reporting currency, AIRTELAFRI’s lower operating costs of USD702.50mn (down to +8.86% Year-on Year (YoY) from +10.98% YoY in Q1:2023) supported a decent EBITDA growth in Q1:2024. EBITDA was higher by 11.11% YoY to USD681.79mn in Q1:2024.

After considering the factors outlined, we maintain our bearish stance on Airtel Africa Plc. and retain “SELL” recommendation, with a revised target price of NGN1173.84 (11.07% loss potential as of August 8th, 2023).

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