Net profit for the Africa business also fell 14.6% sequentially.
Airtel Africa<\/a>'s revenue for the quarter ended September 30 rose 12.7% on-year and 4% sequentially, to $1.308 billion, the company said Thursday. Average revenue per user (ARPU<\/a>) was up 4.4% from the quarter before, and 7.4% on-year to $3.1.
\"Whilst we are not immune to the current macro-economic challenges<\/a> and currency devaluation risks, I am pleased to report double-digit reported revenue growth in the period, largely driven by customer growth of 9.7% and ARPU growth of 7.2%, as we increased penetration and usage through our affordable service offerings,\" Segun Ogunsanya, chief executive officer at Airtel Africa, said in a statement.
Airtel Africa's net finance costs in the September 2022 quarter increased 190% on-year and 36.4% sequentially to $209 million. Net finance costs rose 112% on-year to $358 million in the half year ended September 2022.
Foreign exchange and derivative losses were at $160 million during the half year ended September 30, 2022.
\"Net finance costs of $358m includes foreign exchange and derivative losses of $184m for half year ended 30 September 2022 against $24 million the in prior period, an increase of $160 million largely due to a $31 million derivative loss, Nigerian Naira devaluation impact of $30 million, CFA (Central African Franc) devaluation of $45 million and the balance being devaluation in the Malawian Kwacha, Ugandan shilling & Kenyan shilling,\" the company said in the statement.
Airtel Africa's net debt as on September 30 2022 stood at $3.278 billion, a 7.26% rise on-quarter and 4.8% rise on-year.
\"Our cost efficiency initiatives combined with improving growth trends have also helped offset inflationary pressures on our cost base and expand our EBITDA margin by 38 bps in constant currency,\" said Ogunsanya.
He added that the company has continued to de-risk its balance sheet and have further reduced holding company debt with the early repayment of $450 million of bond in July. “We continue to invest for growth and have increased capital expenditure by 27% over the period, alongside a substantial investment into additional spectrum across several markets,” he added.
Airtel Africa's customer base across 14 markets in the continent fell 2.4% on-quarter but rose 8.6% on-year to 128.4 million, with 3.1 million net additions in the past quarter.
The active mobile money base grew 7.6% on-quarter and 24% on-year to 29.7 million customers.
Mobile money ARPU rose 3.3% on-quarter and 8.4% on-year to $2.1.
\"Following the receipt of the Payment Service Bank<\/a> and Super-Agent license in Nigeria during the period, we have launched our mobile money operations. We are excited about the opportunity in our biggest market and will continue to build trust and confidence in the brand, whilst investing in distribution to increase access to financial services for underserved communities within the country,\" the company said.
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