Airtel Africa, a telecom and mobile money-services company focused on Africa, has announced a $100 million share buyback program along with its financial results for the third quarter. The company reported a significant decrease in pretax profit due to higher finance costs and lower revenue.
Financial Highlights
For the third quarter ending December 31, pretax profit amounted to $43 million, compared to $285 million during the same period the previous year. Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $661 million to $606 million. The EBITDA margin remained flat at 49.0%.
Revenue also saw a decline, totaling $1.24 billion compared to $1.35 billion previously. Within the revenue breakdown, voice revenue dropped by 17% to $538 million, while data revenue fell by 5.9% to $428 million.
Share Buyback Program
Airtel Africa’s decision to launch a share buyback program reflects the company’s strong operating performance and current leverage. With plans to commence the program in March over the next year, the buyback is set to amount to $100 million.
CEO’s Outlook
Despite challenges such as rising diesel prices, ongoing currency devaluation, and inflationary pressures across some markets, Chief Executive Olusegun Ogunsanya remains optimistic about the company’s future growth opportunities. He stated, “We continue to be well positioned to deliver on the attractive growth opportunities our markets offer and remain focused on margin resilience.”