Airtel Africa Announces $100M Share Buyback Plan Amidst Strong Financial Performance

• Airtel Africa, a Nigerian holder in the telecommunications sector, has communicated an intention to repurchase shares worth $100 million from the market. The $100m share buyback program that is planning to start in March and extend over a span of 12 months is expected to increase the value of current shareholders and strengthen the company’s position in better share limits.

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In a report for 9 months recently issued, covering the period through to December 2023, Airtel Africa made mention of $100 million to be allocated for the repurchase of shares, which indicates its potential growth in the coming years. 

This belongs to the features that the company has together with its self-conscious view of the current situation and the perspectives of its business in the long term.

It involves repurchase and cancels existing shares, reducing the total number of shares, which translates to increasing the ownership to increase the total earnings per user and to greater and greater returns to shareholders.

Support for the initiation of the $100m share buyback program is delivered by significant financial results of the company and adequate operational metrics. The company reported a 9.1 percent growth in its total customers to 151.2 million subscribers in all the markets.

Data and mobile money services have gained traction. Mobile data subscribers grew by 22.4%, reaching a total of 62.7 million, while the number of mobile money subscribers reached 37.5 million, which was a 19.5% growth.

In addition, Airtel Africa registered an impressive growth of 20.2% in constant voice, data, and mobile money services revenues in all the regions. Its mobile money annual transaction volume increased to $116 billion, displaying a high level of enthusiasm for digitalizing financial services within its markets.

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Understanding the $100M Share Buyback Strategy

Ogunsanya, the senior executive officer of Airtel Africa, comments on the latest developments concerning the telecommunications industry. 

According to Ogunsanya, these events are at the minimum consistent with Airtel’s growth strategy goals and should provide confidence for its shareholders that the company is able to grow within the telecommunications sector. 

Even though the company is dealing with soaring diesel prices and currency depreciation and inflation in some regions, it continues and will ensure the company provides margin stability and maximizes value for its shareholders.

From a forward-looking standpoint, Airtel Africa is resolute on adhering to sound financial principles and plans to pay off its HoldCo debt amounting to $550 million, which matures in May 2024. 

This debt management strategy further affirms the company’s overview on all of its operations as far as taking care of its business and optimizing its balance sheet is concerned.

As a final remark, pairing Airtel Africa’s $100m share buyback with the strong financials and prospects of the company, we believe that the company can successfully continue expanding and providing worth in the fast-evolving and competitive telecoms sector.

Source: Punchng