Airtel Africa, a prominent telecommunications group listed on the Nigerian Stock Exchange, has unveiled plans to repurchase $100 million worth of its shares from the market.
This announcement was made alongside the release of the company’s 9-month financial report for the period ending December 2023 on Thursday, with the intention to initiate the share buyback program in March 2025, spanning over 12 months.
Airtel Africa emphasized that the decision to repurchase shares stems from its Board’s belief that it is an attractive use of capital, aligning with the group’s robust long-term growth outlook. The share buyback program is set to be executed using the company’s cash reserves and will adhere to applicable securities laws and regulations.
Airtel Africa’s CEO, Segun Ogunsanya, commented on the financial performance and the share buyback initiative, stating, “In light of our consistent strong operating performance and given current leverage, the Board intends to launch a share buy-back program of up to $100m, starting early March 2024 over 12 months.”
He further emphasized the company’s focus on margin resilience despite challenges such as rising diesel prices, currency devaluation, and inflationary pressures in some markets.
Airtel Africa reported impressive operational growth over the nine months, with its total customer base expanding by 9.1% to reach 151.2 million. Mobile data and mobile money services played a pivotal role, driving a 22.4% increase in data customers to 62.7 million and a 19.5% increase in mobile money customers to 37.5 million.
Mobile money transaction value surged by 41.3% in constant currency, reaching a Q3’24 annualized transaction value of $116 billion in reported currency. Airtel Africa’s focus on executing its growth strategy has contributed to a strong 20.2% constant currency revenue growth over the period, accompanied by an increase in EBITDA margins.
Ogunsanya said “Demand remains resilient, highlighting the vital nature of the voice, data, and mobile money services we provide to our customers across the region. This has resulted in a strong 20.2% constant currency revenue growth over the period, with an increase in EBITDA margins.