Mobile money: $112.3 billion in transactions for Airtel Africa in 2024
May 13th 2024
Airtel Africa said it recorded $112.3 billion in transactions through its Mobile Money services in the 2024 financial year ended March 31. This represents an increase of 28.6% compared to the year 2023, at the closing exchange rate of the accounts. Without the impact of monetary developments on its various markets, the increase is 38.2%.
This performance is attributable to the increase in the customer base using this service. “The expansion of the distribution network, including exclusive Airtel Money branch and kiosk channels, supported a 20.7 per cent growth in the customer base ,” the group said in its financial report for the period.
Additionally, average transaction volumes per user increased by 13.1%, reaching $262 at constant exchange rates. In this context, the contribution of mobile money to Airtel Africa’s turnover reached $837 million, up 21.4%, while the share of net profit is announced at $405 million, up by 27.6%.
Although East Africa remains the main market for Airtel Money, French-speaking Africa constituted a real growth driver for the performance of this service, with growth in turnover of 24.3% compared to 19 .4% for East Africa. Nigeria, despite its potential, continues to be a market under construction and difficult to penetrate.
Despite the solid growth shown, Airtel Money does not yet weigh sufficiently heavily on the telecommunications group’s overall revenues, and the latter is also planning to list it on the stock market . However, the operator’s consolidated figures raise questions. Telephone services certainly generate more revenue and net profits, but in terms of net margin ratio, mobile money with its 48% is the one that brings in the most, plus significant free cash flow.
Source: Agency Ecofin
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