Olusegun Ogunsanya, CEO of Airtel Group, elucidated that the company’s decision to embark on a share buyback stemmed from its recent commendable operational performance, which furnished it with the requisite leverage. A share buyback, he clarified, ensues when a company compensates its shareholders to repurchase their shares and subsequently annul them, thereby diminishing its share capital.
With a reduction in Airtel shares in circulation, the remaining shareholders stand to secure a larger stake in the company and augmented returns on forthcoming dividends, thereby empowering Airtel with greater control over its trajectory.
Ogunsanya conveyed unwavering confidence in the company’s capacity to persist in capitalizing on the appealing growth prospects within the telecommunications markets. He affirmed that notwithstanding assorted challenges encountered in certain markets, such as escalating diesel expenses, ongoing currency devaluation, and inflationary pressures, Airtel remains steadfast in its commitment to maximizing margin resilience. While acknowledging that further currency devaluation, notably in Nigeria, has somewhat tempered the company’s reported financial performance, Ogunsanya stressed that such fluctuations will not impede the execution of Airtel’s growth strategies.
“We remain steadfast in the execution of our growth strategy and, combined with our robust operational performance, this has ensured sustained, positive growth momentum across the business despite the challenges posed by inflationary pressures and currency fluctuations.”
Airtel disclosed that its overall customer base across all markets surged by 9.1% to attain 151.2 million. Notably, its mobile data and mobile money services witnessed consistent expansion, with data subscribers escalating to 62.7 million (reflecting a 22.4% surge) and mobile money users to 37.5 million (experiencing a 19.5% increase).
The company highlighted that its voice, data, and mobile money services collectively registered a 20.2% constant currency revenue growth across the region. Notably, its annual mobile money transactions amounted to $116 billion, representing a robust 41.3% surge.
Furthermore, the company underscored its commitment to fully settle its HoldCo debt amounting to $550 million upon its maturity in May 2024.
The comprehensive narrative portrays Airtel’s concerted efforts to bolster its operational resilience, capitalize on growth opportunities, and navigate through the intricacies of regional markets. Airtel’s strategic initiatives, underpinned by sound financial management and operational agility, continue to position the company for sustained growth and resilience amidst a dynamic and evolving telecommunications landscape.
Source: Techpoint