According to the most recent stock market performance, the telecom giant Airtel Africa Plc’s valuation decreased by 4.5% to around N5.6 trillion. The company’s share price had printed at N1,548.70 kobo during the previous seven trading sessions, according to statistics from the Nigerian Exchange.
The market price of Airtel Africa fell to N1,479 as a result of equity investors’ decision to book profits by selling off their stakes in the firm. There are currently 3.758 billion shares outstanding.
After foreign exchange losses recorded in its primary African markets, the company’s 9-month profits performance declined in the fiscal year 2022. Given that the corporate valuation had previously risen to close to N7 trillion, this appears to have sparked a lackluster purchasing mentality.
Despite strong increase in its subscriber base and sales, Airtel Africa Plcpre-tax .’s profit fell 7.3% in the first nine months of the financial year 2022, according to a regulatory filing on the Nigerian Exchange, the country’s market.
The unaudited financial statement for the first nine months of 2022 released by Airtel Africa reveals that topline growth was surpassed by increased expenses and net finance costs.
With certain modifications, 2022 saw a 5.8% decline in the earnings per share of telecom providers. The main telecom provider in Africa revealed that its earnings before tax for the first nine months dropped to $801 million from $864 million in the same period in 2021, a 7.3% decrease.
Some analysts expect earnings to improve as the telecom operator plan selective rollout of its 5G network after it announced about $300 billion was used to acquire the spectrum from Nigeria.
“We spent about $500 million or plus in the last nine months to acquired spectrum in a number of countries, of course, Nigeria, with data in Kenya, Tanzania, Zambia and Mozambique”, Segun Ogunsanya told investors conference.
“So we’re not spectrum-shy, but the pricing that they provide commercial opportunities in the country before we decide to put money behind this”.
“… We have acquired spectrum in a number of countries. Yes, we plan to go down. It’s going to be selected in key cities, where we have gone to see no far devices and with no purchasing power to really enjoy the benefits of 5G”. Airtel bought 5G in Nigeria, close to $300 million.
Jaideep Paul, Airtel Africa’s Chief Financial Officer told analysts that about 20% of Nigeria customers use 4G phones. About 15% use 3G phones, and about 65-odd per cent use 2G phones, mainly antique rural areas.
