Data yields drive Airtel EA revenue to Sh10.5b
By Lewis Njoka, May 15, 2020
Lewis Njoka @LewisNjoka
Improved performance in mobile money and data segments saw Airtel Africa revenue for the East African region increase by Sh10.5 billion in the year ended March 2020.
According to the company’s full year results released on Wednesday, revenue for the East African region rose to Sh128.1 billion up from Sh117.5 billion last year, a 13.6 per cent increase.
The East Africa region comprises Airtel businesses in Kenya, Uganda, Tanzania, Malawi, Rwanda, and Zambia.
Data alone accounted for 25.6 per cent of the Sh128.1 billion total revenue for East African region.
Mobile money accounted for 17.7 per cent while other sources accounted for 10.1 per cent of the revenue.
Average returns
Data revenue grew by 20.3 per cent, to stand at Sh32.8 billion driven by 22 per cent growth in data customers and a 4.6 per cent increase in data average return per unit.
Mobile money revenue grew by 43.7 per cent, to stand at Sh22.7 billion largely driven by growth in Zambia, Tanzania, Uganda and Malawi.
The growth in mobile money segment was driven by a 28.9 per cent increase in customers and a 21.4 per cent growth in transaction value per customer, supported by the expansion of the company’s distribution network through more agents, kiosks and Airtel Money branches.
Despite the massive growth in data and mobile money segments, voice continues to be the biggest income earner for Airtel East Africa bringing in Sh64.7 billion, 50.5 per cent of the total regional revenue.
However, the segment is growing at a much slower rate of 6.2 per cent compared to data’s 20.3 per cent and mobile money’s 43.7 per cent.
“All countries, with the exception of Rwanda, delivered double-digit revenue growth.
Performance improved in the fourth quarter of 2019 largely as a result of an increase in voice and data customers in Tanzania, Uganda and Kenya,” reads the report in part.
Airtel Africa’s total revenue, comprising 14 countries in East, Central and West Africa, stood at Sh365 billion an 11.2 per cent growth compared to last year.