By Tapiwanashe Mangwiro.
Harare – (News of The South) – Lusaka listed Mobile Network Operator Airtel Zambia reports a 75.73% decline in Profit After Tax to ZMW 15.74 million (USD 1 million) for the year ended 31 December 2019 against a 2018 profit position of ZMW 64.86 million (USD 4.2 million).
On the same tip, the telecom giant’s Earnings Per Share took a 75.7% knock to ZMW 0.15 in 2019 against a prior year EPS of ZMW 0.62.
Affecting the firm’s performance was economic instability in the Southern African country characterized by inflation, a contracting economy, and currency instability. 2019 saw the Kwacha shed more than 21% making it difficult for businesses to operate.
Against inflationary pressures, revenue scaled 10.02% to ZMW 2,2 billion (from ZMW 1,95 billion in 2018 while the Gross profit upped 11.5% to ZMW 2 billion in 2019. Airtel has adopted IFRS 15 for Revenue Reporting and therefore restated its results for 2018 to ensure comparability.
Zambia’s Inflation rate remained at a three-year high in December of 2019 as economic growth slowed. Annual consumer inflation accelerated to 11.7% from 10.8% in December, the fastest rate of price growth since October of 2016.
The firm’s Non-Current liabilities nearly doubled from ZMW 752 million in 2018 to ZMW 1.4 billion (USD 91 million) in 2019, while the asset book grew 14% to ZMW 2.7 billion (USD 174 million) in 2019 against the 2018 figure.
An overview of the Zambian Telecoms reveals, the total number of mobile telephone subscribers as at December of 2019 was 15.5 million representing a penetration rate of circa 85%, with Airtel holding a 33% market share with a Customer base of 5.836 million.
Airtel networks Zambia is part of the Bharti Airtel Group and is the largest mobile phone operator in Zambia, by revenue, with a customer base of 5.836 million as at 31 December 2019. Since commencing operations in December 1998, Airtel Networks Zambia has extended its network across the country and now provides coverage in all districts of Zambia.
With a 96% shareholding in Airtel Zambia, Airtel Africa Plc has operations in 14 countries across Africa. Airtel Africa had nearly 107.1 million customers across its operations at the end of December 2019 with growth of 9.4% YoY. The group offers mobile voice & data services, fixed line, high-speed broadband, turnkey telecom solutions for enterprises and national & international long distance services to carriers.
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