Airtel Africa (LSE:AAF) reported half-year revenue of $3,823m, up 28.2% in reported currency and 20.8% in constant currency, as growth accelerated across its businesses in the second quarter.
The London-listed telecommunications and mobile money group operates across 14 sub-Saharan African markets, and the period's growth was broad-based: Nigeria revenue rose 27.0% in constant currency, East Africa grew 18.2% and Francophone Africa accelerated to 20.3% in the second quarter.
Underlying EBITDA margin reached 50.3% for the half, with the second-quarter margin hitting a record 50.4%, up 144 basis points on the prior-year quarter, despite higher fuel costs pressuring the cost base.
Profit after tax rose to $452m from $376m a year earlier, though the figure included $55m of exceptional items tied to an in-principle settlement in one of the group's subsidiaries and costs linked to the Airtel Money initial public offering (IPO).
Basic earnings per share rose to 10.2 cents from 8.3 cents; stripping out exceptional items and lower foreign exchange and derivative gains, earnings per share rose to 11.8 cents from 6.9 cents.
"The recent IPO of Airtel Money represents a significant milestone for the Group," said chief executive officer Sunil Taldar, adding that the company "retained our shareholding through the IPO and remain a long-term strategic shareholder, with significant exposure to Airtel Money's future growth and value creation."
Airtel Money, the group's mobile money arm, listed on the London Stock Exchange on 14 October, offering 270m existing shares, 10% of its issued capital, at £1.96 each.
Airtel Africa did not sell shares in that secondary offering and retains a 77.85% stake, with an over-allotment option of up to 27m additional shares still open during the stabilisation period.
The group's total customer base grew 11.6% to 193.9m, with mobile money customers up 22.4% to 60.9m and data customers up 15% to 89.9m.
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Capital expenditure more than doubled to $657m from $318m, funding around 4,200 new sites as the company accelerates network investment, including for its emerging home broadband business.
Leverage improved to 1.6 times underlying EBITDA from 2.1 times, while lease-adjusted leverage fell to 0.5 times from 0.8 times, aided by the stronger EBITDA performance.
The board declared an interim dividend of 3.1 cents per share, up 9.2%, and the company returned $108.7m to shareholders through a share buyback completed on 28 September, covering 24.5m shares.
Separately, Airtel Kenya acquired 100 MHz of spectrum in the 3500 MHz band for $65m over a 25-year term, following approval from the Communications Authority of Kenya.
The interim dividend is payable on 11 December to shareholders on the register at the close of business on 13 November.