- PAT rose to 28% due to revenue growth and operating efficiencies
- Revenue jumped by 23%
- Zambia's debt relief deal with bilateral creditors is expected to boost the economy
- Customer base grew 14% to 9.2 million, and rival Liquid Intelligent Technologies also reported growth.
Johannesburg- Airtel Zambia, a subsidiary of Airtel Africa plc, reported a strong rise in quarterly profit on Wednesday, boosted by Zambia’s improving economy after the country reached a debt relief deal with bilateral creditors.
Airtel Zambia’s profit after tax jumped 28% to 183 million Zambian kwacha ($10.2 million) in the quarter ended March 31, from 143 million kwacha a year earlier while revenue increased by 23% to 1.206 billion. Airtel said that this was mainly driven by revenue growth and strong operating efficiencies.
The results come a week after Zambia reached an agreement to restructure $6.3 billion of debt owed to bilateral creditors, a move that is expected to help the economy recover after years of default. The deal extends the maturity of Zambia’s debt by more than 12 years and caps interest rates at 2.5% for 14 years.
With mega profits, the company declared an Interim dividend of 1.98 ZMW (US0.11) per share.
The prevailing macroeconomic environment in Zambia supported by the debt restructuring program instituted by the government has spurred business confidence and consumer demand.
The debt relief is a positive for telecom firms like Airtel Zambia as it may boost consumer spending power in the nation of over 18 million people. Airtel Zambia’s customer base grew 14% from a year earlier to 9.2 million.
The growth in the telecommunications sector has largely been driven by the increasing population and improving lifestyle.
Rival Liquid Intelligent Technologies Zambia also reported double-digit revenue and earnings growth for the year ended February, citing a new strategy focused on human capital and realigning jobs.
About Airtel Zambia
Airtel Networks Zambia plc is part of Airtel Africa plc and is the largest mobile phone operator in Zambia, by revenue, with a customer base of more than 9.2 million as at 31st March 2023. Since commencing operations in December 1998, Airtel Networks Zambia Plc has extended its network across the country and now provides coverage in all the districts of Zambia. Airtel Networks Zambia plc offers a full range of voice services, international roaming, prepaid and post-paid subscriptions, and mobile and fixed internet to individual, corporate and SME customers.
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