By Charles Ike-Okoh
WED, 28 OCT, 2020-theGBJournal-Airtel Africa plc announced today that the Board has confirmed an interim dividend of $1.5c (one and half cents of the US dollar) per ordinary share which will be paid on or around 11 December 2020 to shareholders.
The Board had last week, when it published its half yearly results, ended 30 September 2020, declared it will pay the interim dividend in line with ‘’the new progressive dividend policy to focus on growth opportunities and faster deleveraging.’’
It said the new policy aims to grow the dividend annually by a mid to high-single digit percentage from a base of $4 cents per share for FY
Airtel said the Interim dividend will be paid in U.S. Dollars, but the company is offering their shareholders the opportunity to elect to receive their dividend payments in Pounds Sterling or Naira via Currency Elections.
Details regarding the default currency and options on currency election for the dividend, and the currency exchange rates that will be applicable in determination of the Half Year 2020-21 interim dividend payment to any shareholders that qualify for and have elected to receive the Half Year 2020-21 interim dividend payment in Pounds Sterling or Naira, will be issued in due course.
Airtel latest earnings report reflects growth in customer base by 12.0% to 116.4 million while revenue on reported basis increased by 10.7% to $1,815m, with Q2 revenue growth of 14.3%.
The telecomm giant reported revenue growth of 16.4% in H1 and 19.6% in Q2 in constant currency. Growth in its Nigeria operation was up 20.2%, East Africa up 21.9% and Francophone Africa up 4.4%, and services, with voice revenue up by 7.0%, data by 33.4% and mobile money by 30.4%.
However, profit after tax dipped 36.6% from $228 to $145 million while profit before tax dropped 11.1% to $281 million from $316 million.
Key Highlights
Underlying EBITDA increased 12.8% to $812m while constant currency underlying EBITDA growth was 19.3%
-Reported underlying EBITDA margin was 44.7%, up by 85 bps (110 bps in constant currency)
-Operating profit increased by 19.5% to $472m, an increase of 28.3% in constant currency
-Free cash flow was $319m compared to $210m in the same period last year
– Total tax charges for the period amounted to $136m as compared to $88m in the comparable period last year. This was due to higher operating profit and withholding tax on OPCO dividends. The H1’20 also benefited from higher deferred tax credit recognition of $27m as compared to $9.6m in H1’21
-Basic EPS was $3.0¢, down 52.9% largely as a result of exceptional items and a one-off derivative gain incurred in the prior year. Excluding these one-off benefits basic EPS would be up 19%. EPS before exceptional items was $3.0¢.
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