Airtel Africa eyes $100 million share buyback after a surge in customers. The buy-back program will kick off in the early parts of March 2024 and will run for over a year.
Airtel Africa Eyes $100 Million Share Buyback
A share buyback, as undertaken by a company like Airtel, involves the company purchasing its own shares from shareholders and subsequently canceling them, effectively reducing the total share capital. This process decreases the number of shares available on the market, resulting in an increased ownership percentage for the remaining shareholders. This can lead to higher returns on future dividends and grants the company greater autonomy in its operations.
The CEO of Airtel, Ogunsanya, has expressed a robust confidence in the company’s capacity to capitalize on the growth opportunities within the telecommunications sector. Despite facing several challenges, including the rising costs of diesel, currency devaluation, and inflationary pressures across various markets, Airtel is committed to maintaining margin resilience.
Currency Devaluation Affecting the Development
Ogunsanya emphasized that, although currency devaluation, particularly in Nigeria, has negatively affected the company’s reported financial performance, it will not hinder Airtel’s strategic growth initiatives. This assurance highlights Airtel’s dedication to navigating through economic challenges while pursuing its expansion and growth objectives in the telecom industry.
“We remain focused on the execution of our growth strategy and, combined with our strong operational execution, this has ensured that we continue to see sustained, positive growth momentum across the business despite the inflationary and currency headwinds. “
Airtel Has Experienced Significant Growth across Its Operations
Airtel has experienced significant growth across its operations, with its overall customer base expanding by 9.1% to reach a total of 151.2 million users across all markets. This growth is particularly notable in its mobile data and mobile money services. Data subscribers have risen to 62.7 million, marking a 22.4% increase, while mobile money users have grown to 37.5 million, a 19.5% growth rate.
The company has reported a 20.2% growth in constant currency revenue across its services, including voice, data, and mobile money, within the region. Additionally, Airtel’s annual mobile money transactions have seen a substantial increase, valued at $116 billion, indicating a 41.3% growth.
Airtel’s Commitment to Fully Repay its HoldCo Debt
Airtel has also announced its commitment to fully repay its HoldCo debt, which amounts to $550 million, by its due date in May 2024. This decision underlines Airtel’s robust financial management and its strategic approach to handling its obligations while continuing to pursue growth and expansion in its services.
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