TIDMAAF

RNS Number : 0361L

Airtel Africa PLC

11 May 2022

Airtel Africa plc

Results for the year ended 31 March 2022

11 May 2022

Full-year highlights

-- Reported revenue grew by 20.6% for the year, to $4,714m, and 17.8% for Q4. Constant currency underlying revenue grew 23.3% for the year and 19.1% in Q4.

-- Constant currency underlying revenue growth was strong in all regions: Nigeria up 27.7%, East Africa up 22.7% and Francophone Africa up 17.2%; and across all key services, with revenue in Voice up 15.4%, Data up 34.6% and Mobile Money up 34.9%.

   --      Underlying EBITDA of $2,311m, grew by 29.0% in reported currency. 
   --      Underlying EBITDA margin of 49.0%, increased by 294 basis points. 
   --      Operating profit grew by 37.2% to $1,535m in reported currency. 
   --      Profit after tax grew by 82.0% to $755m. 

-- Basic EPS of 16.8 cents, an increase of 86.5%. EPS before exceptional items of 16.0 cents (FY'21: 8.2 cents).

-- Operating free cash flow of $1,655m, up 40.5%, with net cash generated from operating activities up 20.7% to $2,011m. Over the last twelve months the business has repaid nearly $1.4bn of debt at HoldCo as a result of strong cash upstreaming across its OpCos and proceeds from minority investments in mobile money and tower sales.

-- Leverage ratio improved to 1.3x from 2.0x in the prior year, with $1bn of debt now held at HoldCo (FY'21: $2.4bn).

-- Customer base of 128.4 million, up 8.7%, with increased penetration across mobile data (customer base up 15.2%) and mobile money services (customer base up 20.7%). NIN/SIM regulations in Nigeria impacted customer growth in H1, but then returned to strong growth, adding 4 million customers in Nigeria during H2'22.

-- Board recommends a final dividend of 3 cents per share, making total FY'22 dividends 5 cents per share (FY'21: 4 cents).

 
 Alternative performance measures (2)                                GAAP measures 
  (Year ended)                                                        (Year ended) 
------------------------------------------------------------------  ------------------------------------------------- 
       Description         Mar-22   Mar-21   Reported    Constant       Description       Mar-22   Mar-21   Reported 
                                              currency    currency                                           currency 
------------------------                                            ------------------- 
                             $m       $m      change      change                            $m       $m      change 
                                                 %           %                                                  % 
------------------------  -------  -------  ----------  ----------  -------------------  -------  -------  ---------- 
 Underlying revenue 
  (1)                      4,714    3,888      21.3%       23.3%     Revenue              4,714    3,908      20.6% 
------------------------  -------  -------  ----------  ----------  -------------------  -------  -------  ---------- 
 Underlying EBITDA         2,311    1,792      29.0%       31.2%     Operating profit     1,535    1,119      37.2% 
------------------------  -------  -------  ----------  ----------  -------------------  -------  -------  ---------- 
 Underlying EBITDA                              294         296      Profit after 
  margin                   49.0%    46.1%       bps         bps       tax                  755      415       82.0% 
------------------------  -------  -------  ----------  ----------  -------------------  -------  -------  ---------- 
 EPS before exceptional                                              Basic EPS ($ 
  items ($ cents)           16.0     8.2       96.0%                  cents)               16.8     9.0       86.5% 
------------------------  -------  -------  ----------  ----------  -------------------  -------  -------  ---------- 
                                                                     Net cash generated 
 Operating free                                                       from operating 
  cash flow                1,655    1,178      40.5%                  activities          2,011    1,666      20.7% 
------------------------  -------  -------  ----------  ----------  -------------------  -------  -------  ---------- 
 

( (1) Underlying r evenue excludes a one-time exceptional revenue of $20m relating to a settlement in Niger in the prior year.

( (2) Alternative performance measures (APM) are described on page 51.

Segun Ogunsanya, chief executive officer, on the trading update:

"This is another strong set of results for Airtel Africa, demonstrating our solid execution as we continue to enrich the lives of a growing number of people through leveraging the sizeable opportunity to promote digital and financial inclusion across our markets.

We have delivered strong double-digit growth in revenues across all our regions and all our key services, with improving margins driven by strong cost control, and expanding cash generation which is enabling us to continue to invest in our network and services and expand our distribution, as well as strengthening our balance sheet and increasing our returns to shareholders. We are connecting more customers in new and existing coverage areas and driving usage levels and ARPUs to new highs.

We have successfully executed on a number of strategic initiatives in the year, with tower sales completed in four countries, $550m of minority investments secured for our mobile money business and a successful buyout of minorities in our Nigerian operation. Our receipt last month of a full PSB licence in Nigeria will help us to accelerate financial inclusion in the territory and drive our mobile money business even faster.

While the fundamentals of our six-pillar growth strategy remain unchanged, we are looking to accelerate our performance through a greater focus on digitalisation and we have underpinned our strategic pillars with our sustainability ambition.

I am particularly proud of the progress we have made in articulating our sustainability strategy this year as well as the partnership we announced with UNICEF to help drive and support educational programmes in our territories. I very much look forward to us publishing both our pathway to net zero and our first full sustainability report later in the year.

Turning to the outlook, long-term opportunities for us remain attractive. While mindful of currency devaluation and repatriation risks, we continue to work actively to mitigate all our material risks and to deliver value for all our stakeholders. There are increasing challenges from global inflationary pressures, but we continue to target revenue growth ahead of the market and moderate margin expansion."

Airtel Africa plc ("Airtel Africa" or "Group") annual financial information contained in this report is drawn from Airtel Africa plc's audited annual consolidated financial statements for the years ended 31 March 2022 and 31 March 2021, prepared in accordance with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and approved for use in the United Kingdom (UK) by the UK Accounting Standards Endorsement Board (UKEB). Quarterly information is drawn from unaudited IAS 34 financials of respective periods. Comparative period figures have been regrouped/ reclassified to conform with current year grouping/ classification.

About Airtel Africa

Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.

Airtel Africa offers an integrated suite of telecoms solutions to its subscribers, including mobile voice and data services as well as mobile money services, both nationally and internationally. We aim to continue providing a simple and intuitive customer experience through streamlined customer journeys.

Enquiries

 
Airtel Africa - Investor Relations 
 Pier Falcione                            +44 7446 858 280 
 Morten Singleton                         +44 7464 830 011 
 Investor.relations@africa.airtel.com     +44 207 493 9315 
 
Hudson Sandler 
 Nick Lyon 
 Emily Dillon 
 airtelafrica@hudsonsandler.com           +44 207 796 4133 
 

Conference call

Management will host an analyst and investor presentation and conference call at 12:00pm UK time (BST), on Wednesday 11 May 2022, including a Question and Answer session.

To receive an invitation with the dial in numbers to participate in the event, please register beforehand using the following link:

https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=1370750&linkSecurityString=2d5d99c98

Key financial information

 
 Description            Unit       Year ended                                  Quarter ended 
                     of measure 
-----------------                 ------------------------------------------  ---------------------------------------- 
                                   Mar-22    Mar-21    Reported    Constant    Mar-22   Mar-21   Reported    Constant 
                                                        currency    currency                      currency    currency 
                                                         change      change                        change      change 
                                                           %           %                             %           % 
-----------------                 --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Profit and loss 
  summary 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying 
  revenue 
  (1)                    $m         4,714     3,888      21.3%       23.3%     1,222    1,038      17.8%       19.1% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
  Voice revenue          $m         2,358     2,083      13.2%       15.4%      611      547       11.8%       13.6% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
  Data revenue           $m         1,525     1,157      31.8%       34.6%      397      315       26.0%       27.9% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
  Mobile money 
   revenue 
   (2)                   $m          553       401       37.9%       34.9%      147      110       33.6%       29.0% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
  Other revenue          $m          407       347       17.4%       19.9%      102       91       12.3%       14.0% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Expenses                $m        (2,413)   (2,107)     14.5%       16.4%     (616)    (544)      13.2%       14.8% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying 
  EBITDA 
  (3)                    $m         2,311     1,792      29.0%       31.2%      608      495       22.9%       23.7% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
  Underlying 
   EBITDA                                                 294         296                           206         187 
   margin                %          49.0%     46.1%       bps         bps      49.7%    47.7%       bps         bps 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Depreciation and 
  amortisation           $m         (744)     (681)      9.3%        11.3%     (188)    (176)      6.6%        8.4% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating 
  exceptional 
  items (4)              $m         (32)       14          -           -        (32)      1          -           - 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating profit        $m         1,535     1,119      37.2%       39.4%      390      319       22.3%       22.0% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Net finance 
  costs 
  (5)                    $m         (403)     (423)     (4.6%)                 (112)    (104)      7.7% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Non-operating 
  exceptional 
  items(6)               $m          92         -          -                     82       -          - 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Profit before 
  tax                    $m         1,224      697       75.6%                  360      215       67.4% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Tax                     $m         (471)     (318)      48.2%                 (122)     (82)      47.5% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Tax - 
  exceptional 
  items                  $m           2        36          -                     2        21         - 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Total tax charge        $m         (469)     (282)      66.3%                 (120)     (61)      95.2% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Profit after 
  tax                    $m          755       415       82.0%                  240      154       56.0% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Non-controlling 
  interest               $m         (124)     (76)       62.9%                  (50)     (22)     130.7% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Profit 
  attributable 
  to owners of 
  the 
  company - 
  before 
  exceptional 
  items                  $m          602       308       95.9%                  171      121       41.5% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Profit 
  attributable 
  to owners of 
  the 
  company                $m          631       339       86.3%                  190      132       43.7% 
-----------------                 --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 EPS - before 
  exceptional 
  items                cents        16.0       8.2       96.0%                  4.6      3.2       41.6% 
=================  =============  ========  ========  ==========  ==========  =======  =======  ==========  ========== 
 Basic EPS             cents        16.8       9.0       86.5%                  5.1      3.5       43.8% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Weighted average 
  no of shares        million       3,754     3,758     (0.1%)                 3,753    3,756     (0.1%) 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Capex                   $m          656       614       6.9%                   224      211       6.4% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating free 
  cash flow              $m         1,655     1,178      40.5%                  384      284       35.1% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Net cash 
  generated 
  from operating 
  activities             $m         2,011     1,666      20.7%                  512      449       14.1% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Net debt                $m         2,941     3,530                            2,941    3,530 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Leverage (net 
  debt to 
  underlying 
  EBITDA)              times        1.3x      2.0x                              1.3x     2.0x 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Return on 
  capital                                                 678                                       680 
  employed               %          23.3%     16.5%       bps                  23.2%    16.4%       bps 
-----------------                 --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating KPIs 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 ARPU                    $           3.2       2.8       13.5%       15.4%      3.2      2.9       9.5%        10.7% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Total customer 
  base                million       128.4     118.2      8.7%                  128.4    118.2      8.7% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Data customer 
  base                million       46.7      40.6       15.2%                  46.7     40.6      15.2% 
-----------------  -------------  --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 Mobile money 
  customer 
  base                million       26.2      21.7       20.7%                  26.2     21.7      20.7% 
-----------------                 --------  --------  ----------  ----------  -------  -------  ----------  ---------- 
 

(1) Revenue includes intra-segment eliminations of $129m for the year ended 31 March 2022 and $100m for the prior year. And it also excludes one-time exceptional revenue of $20m relating to a settlement in Niger in the year ended 31 March 2021.

(2) Mobile money revenue post intra-segment eliminations with mobile services was $424m for the year ended 31 March 2022, and $301m for the prior year.

(3) Underlying EBITDA includes other income of $10m for the year ended 31 March 2022, and $11m for the prior year.

(4) Operating exceptional items of $32m in the year ended 31 March 2022 consists of a $12m provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party and $20m costs of agreeing historical spectrum fees in one of the Group's subsidiaries. The prior year operating exceptional items includes exceptional revenue relating to a one-time settlement in Niger for $20m, partially offset by one-off costs of $6m in Francophone Africa.

(5) Net finance costs in the year ended 31 March 2022 excludes a one-off cost of $19m on prepayment of $505m bonds in March 2022.

(6) Non-operating exceptional items in the year ended 31 March 2022 include a gain of $111m on the sale of telecommunication tower assets in the Group's subsidiaries in Tanzania, Malawi, Madagascar, and Rwanda, partially offset by costs of $19m on prepayment of $505m of bonds.

Financial review for the year ended 31 March 2022

We have recorded another strong set of results that demonstrate the effective execution of our strategy, with strong performance across our regional segments and key services. Reported revenue grew by 20.6%.

Underlying revenue in constant currency grew by 23.3%. Revenue in Nigeria grew by 27.7%, in East Africa by 22.7% and in Francophone Africa by 17.2% in constant currency. We have delivered strong double-digit growth across all our key services: voice revenue grew by 15.4%, data revenue grew by 34.6%, mobile money revenue grew by 34.9%, and other revenue by 19.9%. Growth in other revenues was marginally impacted in Q4'22 from the loss of c.$6m revenues from tower sharing related to tower sales completed in the year. Mobile services revenue grew by 22.0% in constant currency (19.6% in reported currency) and mobile money services revenue grew by 34.9% (37.9% in reported currency). Revenue growth for the year benefited from a weakened performance in the first quarter of the prior year during the peak period of Covid-19 restrictions across the region.

Net finance costs were broadly flat. The increase in tax charges of $187m was due to higher operating profits and withholding tax on dividends by subsidiaries, with the prior year also benefitting from $36m deferred tax credit recognition.

Basic EPS improved to 16.8 cents while EPS before exceptional items improved to 16.0 cents, with higher profits more than offsetting the associated increased tax charges, and higher non-controlling interests due to higher profit contributions in OpCos with minority shareholdings and new minority shareholdings in Airtel Money, partially offset by lower minority interests in Airtel Nigeria as a result of the successful share buy-back.

Leverage improved to 1.3x from 2.0x in the prior year, largely driven by increased cash generation, expansion of underlying EBITDA and proceeds from Airtel Money investments. Our balance sheet has also been further de-risked by continued localisation of our debt into the OpCos and material debt reduction in HoldCo.

GAAP measures

Revenue

Reported revenue grew by 20.6% to $4,714m. The prior year benefited from one-time exceptional revenue of $20m relating to a settlement in Niger. Excluding this, revenue grew by 21.3% in reported currency and by 23.3% in constant currency. Constant currency growth of 23.3% was partially offset by currency devaluations, mainly in the Nigerian naira (5.6%) and the Malawian kwacha (7.2%), in turn partially offset by appreciation in the Ugandan shilling (4.1%) and Zambian kwacha (4.4%). Revenue growth for the year benefited from a weakened performance in the first quarter of the prior year during the peak period of Covid-19 restrictions across the region.

Operating profit

Operating profit grew by 37.2% to $1,535m in reported currency as a result of strong revenue growth and improvements in operating efficiency across all our regions. Operating profit included a one-time cost of $32m consisting of a $12m provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party, and $20m costs relating to an agreement on historical spectrum fees in one of the Group's subsidiaries. This compared to the prior year which included a gain of $20m for a one-time settlement in Niger, which was partially offset by one-off costs of $6m in Francophone Africa. Excluding exceptional items, operating profit grew by 41.9%.

Net finance costs

Net finance costs were broadly flat, as lower foreign exchange and derivative losses, higher interest income and a one-time $12m gain in other finance charges as a result of the reversal of an interest provision in one of our operating entities were offset by a one-off cost of $19m for the applicable premium paid on the early repayment of the $505m bonds in March 2022. Additionally, interest costs were also broadly flat as lower interest costs on our reduced market debt were offset by an increase in interest costs on lease liabilities.

The Group effective interest rate increased to 5.6% compared to 4.9%, largely driven by repayment of the EUR750m bond in May 2021, which carried a lower-than-average coupon, and due to higher local currency debt at the OpCo level. In line with our strategy to continue to reduce foreign currency debt at HoldCo, we also repaid $505m bonds in March 2022, one year earlier than their March 2023 redemption date. One-off costs of $19m, including applicable premium, have been recorded under non-operating exceptional items, while the Group will save an aggregate of c.$26m on interest payments from the early redemption.

Taxation

Total tax charges were $469m, an increase of $187m, driven by higher operating profit and withholding tax on dividends by subsidiaries. The prior year also benefited from the recognition of a deferred tax credit of $36m in Tanzania.

Profit after tax

Profit after tax increased by 82.0% to $755m. This increase was mainly led by higher operating profits and stable net finance costs which more than offset the associated increase in tax charges. Exceptional gains were also $12m higher than the prior year.

Basic EPS

Basic EPS climbed to 16.8 cents, an improvement of 7.8 cents (+86.5%) from 9.0 cents in the prior year. This increase was mainly due to higher operating profits which more than offset increased tax charges and higher non-controlling interests (due to higher profit contributions in OpCos with minority shareholdings, new minority shareholdings in Airtel Money partially offset by lower minority interests in Airtel Nigeria as a result of the successful share buy-back).

Net cash generated from operating activities

Net cash generated from operating activities was $2,011m, an increase of 20.7% from $1,666m in the prior period. The increase was largely driven by higher profit before tax of $527m, which was partially offset by higher tax payments on the increased profits and withholding tax on dividends by subsidiaries. Over the last twelve months the business has repaid nearly $1.4bn of debt at HoldCo as a result of strong cash upstreaming across its OpCos and proceeds from minority investments in mobile money and tower sales.

Alternative performance measures [1]

Underlying revenue

Underlying revenue in constant currency grew by 23.3%, driven by both customer base growth of 8.7% and ARPU growth of 15.4%. The slowdown in customer base growth was due to the introduction of new SIM registration regulations in Nigeria. Excluding Nigeria, the customer base grew by 10.2%. In Nigeria, our customer base returned to growth in the second half of the year, adding a net 2.4 million customers for the full year. At the end of the year our total customer base was 128.4 million, an increase of 10.2 million. ARPU growth of 15.4% was driven by all our key services: with data contributing 7.7%, voice contributing 4.3%, mobile money contributing 2.7%, and the balance coming from other revenue, which was marginally impacted in Q4 from the loss of tower sharing revenues relating to towers sold during the year.

Revenue growth was recorded across all our regions and key services. Underlying revenue in Nigeria grew by 27.7%, in East Africa by 22.7%, and in Francophone Africa by 17.2%. Voice revenue grew by 15.4%, data revenue grew by 34.6% and mobile money revenue grew by 34.9% in constant currency.

Underlying EBITDA

Underlying EBITDA was $2,311m, an increase of 29.0% in reported currency and of 31.2% in constant currency. Growth in underlying EBITDA was led by revenue growth and supported by improved operating efficiencies. The underlying EBITDA margin improved by 294 basis points in reported currency to 49.0%.

Foreign exchange had an adverse impact of $58m on revenue, and $26m on underlying EBITDA, as a result of devaluations of the Nigerian naira and the Malawian kwacha, in turn partially offset by appreciations of both the Ugandan shilling and the Zambian kwacha.

With respect to currency devaluation sensitivity, on a 12-month basis, a 1% currency devaluation across all currencies in our OpCos would have a negative impact of $43m on revenues, $26m on underlying EBITDA and $21m on finance costs. Our largest exposure is to the Nigerian naira, for which a 1% devaluation would have a negative impact of $18m on revenues, $11m on underlying EBITDA and $7m on finance costs.

Tax

The effective tax rate was 39.0% compared to 43.2% in the prior period, largely due to profit mix changes amongst the OpCos. The effective tax rate is higher than the weighted average statutory corporate tax rate of approximately 33%, largely due to the profit mix between various OpCos and withholding taxes on dividends by subsidiaries.

Exceptional items

Operating exceptional items of $32m in the year ended 31 March 2022 consists of a $12m provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party and $20m costs of agreeing historical spectrum fees in one of the Group's subsidiaries. The prior period operating exceptional items includes exceptional revenue on account of a one-time settlement in Niger amounting to $20m, partially offset by a one-off cost of $6m in Francophone Africa.

Non-operating exceptional items in the year ended 31 March 2022 include a gain of $111m on the sale of telecommunications tower assets in the Group's subsidiaries in Tanzania, Malawi, Madagascar, and Rwanda, partially offset by one-off costs of $19m including applicable premium paid on the early repayment of $505m bonds in March 2022.

Exceptional tax benefit of $2m recognised in the year mainly relate to the provision for the contractual dispute in which one of the Group's subsidiaries is a party, and the $36m in the prior year relates to deferred tax credit recognition in Tanzania.

EPS before exceptional items

EPS before exceptional items almost doubled to 16.0 cents, up by 96.0% (+7.8 cents) from 8.2 cents in the prior year. This increase was mainly due to higher operating profits which more than offset the increased tax charges and higher non-controlling interests (due to higher profit contributions in OpCos with minority shareholdings, new minority shareholdings in Airtel Money partially offset by lower minority interests in Airtel Nigeria as a result of the successful share buy-back).

Operating free cash flow

Operating free cash flow increased by 40.5% to $1,655m, as higher underlying EBITDA more than offset increased capital expenditure. Capital expenditure in the prior year was slightly lower due to logistical challenges as a result of the pandemic.

Leverage

Leverage (net debt to underlying EBITDA) improved to 1.3x at 31 March 2022, from 2.0x at 31 March 2021, largely driven by increased cash generation, expansion in underlying EBITDA and receipts of $550m from mobile money minority investments. Our balance sheet continued to be de-risked through a reduction of HoldCo debt (now $1bn, down from $2.4bn in the prior year) and increased localisation of our debt into the OpCos, such that our gross OpCo debt of $2,921m (including lease obligations) is now significantly higher than our HoldCo debt of $1,000m.

Other significant updates

Full payment service bank licence in Nigeria

In April 2022, Airtel Africa's subsidiary SMARTCASH Payment Service Bank Limited ('Smartcash') was granted final approval to operate a payment service bank ('PSB') business in Nigeria.

The PSB licence is required for Airtel to provide mobile financial services in Nigeria, such as accepting cash deposits and carrying out payments and remittances, issuing debit and prepaid cards, operating electronic wallets and rendering other financial services.

Full super-agent licence in Nigeria

On 14 November 2021, Airtel Africa's subsidiary Airtel Mobile Commerce Nigeria Ltd was granted approval in principle by the Central Bank of Nigeria to operate as a super-agent in Nigeria. This was subsequently upgraded to approval for a full super-agent licence in April 2022.

Under the super-agent licence, we are able to create an agent network that can service the customers of licensed Nigerian banks, payment service banks and licenced mobile money operators in Nigeria.

Early Bond redemption

In March 2022, the Group confirmed that it had completed the early repayment of its $505m 5.125% Guaranteed Senior Notes, originally due in March 2023, using cash balances available at Group level.

Settlement included all outstanding accrued interest up to the redemption date of 7 March 2022. One-off costs of $19m, including applicable premium, have been recorded under non-operating exceptional items, while the Group will save an aggregate of c.$26m on interest payments from early redemption.

Since the time of the IPO in June 2019, Airtel Africa has successfully pursued a strategy of strengthening its balance sheet through both deleveraging and reducing its US dollar debt exposure. Over this period the Group has reduced its USD HoldCo debt by c.$1.7bn and improved its leverage ratio to 1.3x net debt to underlying EBITDA at 31 March 2022. Following this early repayment of senior notes, the Group now has only $1bn of bonds remaining at HoldCo level, due in May 2024.

Completion of Airtel Nigeria minority buyout offer

On 2 December 2021, further to the buyout offer announcement on 4 October 2021, Airtel Africa announced the completion of the minority shareholding buyback of Airtel Networks Limited ('Airtel Nigeria'), a subsidiary of Airtel Africa plc and a leading provider of telecommunication services in Nigeria.

The purchase consideration for the 8.22% minority shareholdings acquired under the buyback was NGN 67.6bn, equivalent to $163m, including directly attributable transaction costs.

NIN - SIM linkage registration rules in Nigeria

Following a directive issued by the Nigerian Communications Commission (NCC) on 7 December 2020 to all Nigerian telecom operators, Airtel Nigeria has been working with the government to ensure that all our subscribers provide their valid National Identification Numbers (NINs) to update SIM registration records. To complete the registration process, we must link the NIN information received with the SIM of the respective subscribers and share the same with the National Identity Management Commission (NIMC).

The original regulatory directive set an initial deadline for customers to register (link) their NIN with their SIM of 30 December 2020. This was subsequently moved several times, with the last deadline being 31 March 2022. Airtel Nigeria was subsequently notified that with effect from 4 April 2022, all SIMs that have not been linked to a NIN were to be placed on 'receive only' status, meaning all their outgoing calls have been barred with immediate effect.

Subscribers of such lines can still link their SIMs to their NINs in order that these restrictions can be lifted. Customers have therefore been given a final opportunity to fully comply with the latest registration requirements.

We have made significant progress on capturing the NINs of our customers and building the database in collaboration with the NIMC. As at the end of April 2022, we have collated NIN information for 35.9 million active customers. Outgoing voice revenues for those active subscribers who have not yet linked their NIN with their SIM amounts to around 7% of total revenues from Nigeria, and around 3% of total revenues for the Group. However, our experience of adopting similar procedures in other countries suggests that SIM registration is accelerated, and some SIM consolidation is likely to occur in response to implementation, potentially reducing any financial impact. As at the end of the year, Airtel Nigeria had an active customer base of 44.4 million and posted revenue of $1,878m.

We continue to work closely with the regulator and impacted customers to help them to comply with the registration requirements, making every effort to minimise disruption and ensure affected customers can continue to benefit from full-service connectivity as soon as possible; in line with our aim to drive increased connectivity and digital inclusion across Nigeria.

Kenya spectrum licences

On 7 March 2022, the Group announced that its Kenya subsidiary, Airtel Kenya Networks Limited ('Airtel Kenya'), had entered into agreements with the Communications Authority of Kenya regarding its operating and spectrum licences, and received approval for the replacement of its temporary licence with a ten-year frequency licence for 2x10 MHz of spectrum in the 2100 MHz band, as follows:

-- In respect of agreements regarding 2015-2025 operating and spectrum licences, Airtel Kenya will pay a total of c.$20m in four instalments over the next three years.

-- In respect of the 2x10 MHz licence, 2022-2032, Airtel Kenya has agreed and paid for a ten-year licence for $10m.

Airtel Kenya is one of the Group's largest markets by revenue, and from FY'19 to FY'22 grew revenues by 22.2% CAGR. This $30m investment reflects our continued confidence in the tremendous opportunity inherent in the Kenya market.

Uganda listing obligation

Under Article 16 of Uganda's National Telecom Operator ('NTO') licence, Airtel Uganda limited is obliged to comply with the sector policy, regulations and guidelines requiring the listing of part of its shares on the Uganda Stock Exchange. The current Uganda Communications (Fees & Fines) (Amendment) Regulations 2020, creates a public listing obligation for all NTO licensees, and specifies that 20% of the shares of the operator must be listed within two years of the date of the effective date of the licence. Currently, this imposes a listing requirement by 15 December 2022 on Airtel Uganda. On 5(th) April 2022 we applied to the Uganda Communications Commission for an extension on the deadline for a period of one year.

Tower sales

On 25 March 2022 and 3 November 2021, Airtel Africa announced the first closings of transactions to sell its telecommunications tower companies in Malawi and Madagascar respectively, to Helios Towers plc, a leading independent telecommunications infrastructure company in Africa.

On 5 January 2022, Airtel Africa announced the first closing of the transaction to sell its telecommunications tower assets in Tanzania to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation, a leading global independent owner and operator of wireless communications infrastructure, as majority owner, and by Paradigm Infrastructure Limited, a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth markets.

The gross considerations for these transactions are $55m in Malawi, $52m in Madagascar, and $177m in Tanzania. Loss of tower sharing revenue as a result of the sale of these towers amounted to $29m per annum. As a result of the tower sales across our OpCos the Group recorded a gain of $111m.

Under the terms of these tower transactions, Airtel Africa's subsidiaries in the respective countries will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements with the purchaser.

In March 2021, the Group also announced memorandum of understanding arrangements with Helios Towers for the potential sale of its tower assets in Chad and Gabon. In February 2022, Airtel Africa announced that it had agreed an extension to their memorandum of understanding arrangement with Helios Towers in Gabon, with completion still subject to Helios Towers obtaining a passive infrastructure licence. The memorandum of understanding arrangement relating to tower assets in Chad expired in February 2022, and Airtel Africa and Helios Towers have mutually agreed that this would not be renewed.

Strategic investments in our mobile money business

Following earlier similar announcements of investments in our mobile money business of $200m by TPG's The Rise Fund and $100m by Mastercard (made on 18 March 2021 and 1 April 2021 respectively) in July 2021, Airtel Africa signed agreements with Qatar Holding LLC, an affiliate of the Qatar Investment Authority ('QIA'), regarding their investment of $200m in Airtel Mobile Commerce BV ('AMC BV'), a subsidiary of Airtel Africa plc. AMC BV is the holding company for several of Airtel Africa's mobile money operations; and ultimately is intended to own and operate the mobile money businesses across all of Airtel Africa's 14 operating countries.

On 2 August 2021 and 20 August 2021 Airtel Africa announced first closings relating to the Airtel Money minority investment transactions with TPG's The Rise Fund and Mastercard, and subsequently with Qatar Holding LLC respectively. Upon first closings, The Rise Fund, Mastercard and QIA invested $150m, $75m and $150m respectively in a secondary purchase of shares in AMC BV from a subsidiary of Airtel Africa, and both QIA and TPG each appointed a director to the board of AMC BV.

In November 2021, Airtel Africa announced second closings relating to these Airtel Money minority investment transactions, with a further $50m, $25m and $50m invested into AMC BV by The Rise Fund, Mastercard and QIA respectively.

In December 2021, Airtel Africa announced the introduction of Chimera Investment LLC as an additional investor in AMC BV through a $50m secondary purchase of shares from a subsidiary of Airtel Africa plc. Chimera Investment LLC (through its subsidiary Chimetech Holding Ltd.) now holds minority stakes in AMC BV alongside the other minority investors, with Airtel Africa continuing to hold the majority stake.

These transactions are a continuation of the Group's pursuit of strategic asset monetisation and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years from first closing.

Airtel Africa has now received a total of $550m cumulative proceeds from minority stake sales in Airtel Money from the four investors. As previously reported, the proceeds from these secondary stake sale transactions were used for repayment of Group debt and for investment in network and sales infrastructure in the respective operating countries.

Launch of sustainability strategy

Within our Full Year Results announcement in May 2021, we highlighted that we would publish the measurable medium to long-term sustainability goals we set ourselves. In the first six months of this financial year, we identified the programmes needed, along with key milestones towards these goals. We also conducted a consultation progress with our stakeholders to gather feedback and further inform our sustainability strategy.

In October 2021, Airtel Africa launched an ambitious sustainability strategy that underpins our well-established corporate purpose of 'Transforming Lives.' The strategy demonstrates our commitment to developing the infrastructure and services that will drive both digital and financial inclusion for people across Africa and provides a framework to contribute to six of the United Nations' Sustainable Development Goals ('SDGs') where we believe we can have the biggest impact. These are SDG 4: Delivering quality education;

SDG 5: Gender equality; SDG 8: Decent work and economic growth; SDG 9: Industry innovation and infrastructure; SDG 10: Reduced inequalities; and SDG 12: Responsible consumption and production.

The launch of our sustainability strategy builds upon the Group's sustainability framework, announced with the FY'21 results, with its four key pillars of 'Our business', 'Our people', 'Our communities' and 'Our environment', and the strong foundations of the work we are already doing at a Group level and across all our local operations. The new sustainability strategy covers every aspect of our business activities, and has environmental, social and governance criteria at its core.

The sustainability strategy includes nine goals and commitments, with corresponding programmes that address the business' material topics (identified through an extensive consultation at the beginning of the year) and enable the Group to continue delivering sustainable growth and uphold the best governance standards:

-- Data security goal: Establish industry-leading data security for our customers; through investments in technology and expertise, updated processes and consumer awareness - with focus areas around confidentiality, integrity and availability.

   --      Service quality goal : Provide underserved communities with access to reliable networks and connectivity; through the rollout of new infrastructure and technology, improved fibre connectivity and capacity - with focus areas on service accessibility, delivery and reliability. 

-- Supply chain goal: Ensure all our suppliers are aligned with our sustainability agenda; through programmes to increase supplier disclosure and audit ESG performance - with focus areas on enhanced supplier due diligence and ongoing ESG compliance.

-- Commitments to our people: with our ambition to provide rewarding employment opportunities and to achieve genuine diversity and inclusion at all levels across the business through four key commitments:

o Delivering equality in our workforce; through recruitment and programmes to provide training and advancement for everyone regardless of gender, nationality or disability;

o Providing best practice training and development; through upskilling and reskilling initiatives to ensure they can succeed in their future careers. And through supporting female entrepreneurs through training and increasing women's participation in the technology and engineering sectors;

o Providing the highest standards of health and safety for our employees and contractors; through the introduction of a best practice social and health and safety management system, improved policies and full compliance with all legislation and regulation; and,

o Maintaining the highest levels of employee engagement; through the introduction of additional channels that provide every one of our people with a voice.

-- Digital inclusion goal : significantly improve digital Inclusion across Africa; by driving the penetration of mobile, smartphones and home broadband in rural areas through the provision of retail and support services.

-- Financial inclusion goal : significantly increase financial inclusion in Africa, with particular support for women; through the development of affordable financial products to meet the needs of the un- and under-banked, a reliable service and financial confidence and literacy.

-- Access to education goal: helping transform the lives of over one million children through improving access to education - with programmes around connectivity, the provision of zero-rated education content under a five-year UNICEF partnership, connecting 1,400 schools to the internet by 2027, and the adoption and support of schools in all our markets.

-- Greenhouse gas emissions reduction goal: Our ambition is to achieve net zero greenhouse gas ('GHG') emissions ahead of the 2050 deadline set out in the Paris Agreement. To do this we must fully identify, measure and reduce our GHG emissions which can only be achieved in partnership with our peers and the wider industry. We will establish and launch a sector leading and credible decarbonisation pathway in 2022, ahead of the publication of our first Sustainability Report. In January 2022, we have engaged with the Carbon Trust for their advice and assistance with several aspects of our Greenhouse gas emissions measurement, management and reporting.

-- Environmental stewardship: Eliminate hazardous waste from our operations, significantly reduce our non-hazardous waste and minimise our water consumption ; with programmes to replace damaging materials, expand recycling schemes and build employees' awareness around the protection of our natural resources.

Partnership with UNICEF

On 1 November 2021, Airtel Africa and UNICEF announced a five-year pan-African partnership to help accelerate the roll-out of digital learning through connecting schools to the internet and ensuring free access to learning platforms across 13 countries. By providing equal access to quality digital learning, particularly for the most vulnerable children, the partnership will help to ensure that every child reaches their full potential.

Airtel Africa is the first African private sector partner to make a multimillion-dollar commitment to 'Reimagine Education', a global initiative launched by UNICEF in 2020 calling for public and private sector investment in digital learning as an essential service for every child and young person across the globe. This initiative aims to give children a chance to catch up on their learning needs amid the ongoing global pandemic.

Airtel Africa's financial and in-kind contribution for this partnership is $57m over five years to 2027. The programme will call on technology and expertise, in addition to direct financial support to connect schools and communities to the internet and enable free access to online educational content for students. It will also provide vital data insights to inform UNICEF's work to scale-up digital learning and help ensure it is sustainable and meets students' needs across Africa.

The Airtel Africa and UNICEF pan-African partnership will benefit students in Chad, Congo, Democratic Republic of the Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Tanzania, Uganda and Zambia.

Dividend policy

In October 2021, the Board approved an upgrade to the progressive dividend policy as a result of continued strong business performance and significant progress made in reducing the leverage ratio. The new policy aims to grow the dividend annually by a mid to high-single digit percentage from a new base of 5 cents per share for FY'22, with a continued focus to further strengthen the balance sheet.

The Board recommends a final dividend of 3 cents per share, making total FY'22 dividends 5 cents per share including the interim dividend of 2 cents per share, and in line with this upgraded dividend policy.

Covid update

The Covid-19 pandemic contributed to a rapid acceleration of already existing macro trends across the countries where we operate, with people, businesses and governments seeking access to more and better connectivity and improved financial inclusion. These challenging times have shown that the telecoms industry is a key and essential service for these economies, allowing customers to work remotely, reduce their travel, keep connected and have access to affordable entertainment and financial services.

Covid-19 presented significant challenges to the business, particularly during the initial phase of the pandemic in Q1 last year, when mobile money and mobile services growth both slowed. However, the actions taken by the Board at that time enabled the continued execution of our strategy, including meeting increased customer demand for data, mobile money and mobile services.

Through multiple lockdowns and during times of national crisis our people have kept our distribution channels available and our networks fully operational. Our business partners have similarly continued to deliver their services despite numerous logistical challenges, and governments and regulators have continued to support the industry and helped facilitate our continued support to the economies of the countries and the communities we serve.

Several times through the pandemic, the governments in the countries where we operate have acted swiftly to implement and enforce restrictions on the movement of people to prevent contagion. These swift actions, along with low population density and relatively youthful population demographics, less frequent travel, and local experience in dealing with contagious diseases, have resulted in generally lower infection rates in sub-Saharan Africa relative to some other regions. Around the world the vaccination effort is well under way, with a significant easing of social distancing rules and travel restrictions, although Africa lags most developed economies in attaining full vaccination cover.

Despite the resilience demonstrated by our business during the last two years, we are constantly monitoring how the situation is evolving to identify key risks and to put in place adequate mitigation plans to minimise any potential disruptions.

The Group will continue to focus on ensuring the safety of our employees, our outsourced partners and our customers; ensuring that our network and distribution channels remain fully operational and available; ensuring that our customers continue to have access to financial services and ensuring that at Group level we are in the right financial position to meet our financial obligations at all times.

New shareholding requirements in Kenya

On 9 April 2021, the Minister for ICT in Kenya published an amendment to the National Information Communications and Technology (ICT) Policy Guidelines, 2020 (ICT Policy). The ICT Policy amendment will affect Airtel Africa's Kenya business as follows:

-- Airtel Networks Kenya Limited, which currently holds an indefinite exemption from the Minister for ICT, dated 20 March 2013, has three years with effect from 9 April 2021 to comply with the requirement to have a 30% local shareholding.

-- Airtel Money Kenya Limited, which holds a Content Service Provider Licence from the Communications Authority of Kenya, with effect from November 2020, has three years from the date of the licence to comply with the requirement to have a 30% local shareholding.

Under the amended ICT policy, a licensee may apply to the ICT Minister for an extension of time to comply with the requirement, or to obtain an exemption.

Appointment of new CEO, and other Board appointments and changes

On 29 April 2021, Airtel Africa announced that Olusegun 'Segun' Ogunsanya, managing director and chief executive officer Airtel Nigeria was to succeed Raghunath 'Raghu' Mandava, as managing director and chief executive officer following Raghu Mandava's informing the Board of his intention to retire. Segun Ogunsanya joined the Board of Airtel Africa plc with effect from 1 October 2021.

Segun Ogunsanya joined Airtel Africa in 2012 as managing director and chief executive officer Airtel Nigeria and has been responsible for the overall management of our operations in Nigeria, our largest market in Africa. Segun has more than 25 years' business management experience in banking, consumer goods and telecoms. Before joining Airtel in 2012, Segun held leadership roles at Coca-Cola in Ghana, Nigeria, and Kenya (as managing director and chief executive officer). He has also been the managing director of Nigerian Bottling Company Ltd (Coca-Cola Hellenic owned) and Group head of retail banking operations at Ecobank Transnational Inc, covering 28 countries in Africa. He is an electronics engineer and also a chartered accountant.

Raghu Mandava has retired as managing director and chief executive officer, as a director of Airtel Africa plc and as a member of the Market Disclosure Committee as of 30 September 2021. Following his cessation of employment at Airtel Africa, Mr. Mandava remains available to advise the Chairman, the Airtel Africa Board and the newly appointed managing director and chief executive officer for a nine-month period.

Jaideep Paul, chief financial officer, was appointed as an executive director and joined the Board of Airtel Africa plc with effect from 1 June 2021.

On 12 October 2021, Airtel Africa announced the appointment of Ms Tsega Gebreyes to the Board as an independent non-executive director, with immediate effect.

New administrative office in Dubai

Airtel Africa plc has opened a new office in Dubai, adding to its existing administrative office locations in Nairobi, London, Amsterdam and Delhi.

The executive committee of Airtel Africa plc now operates out of the new office, which provides for significantly improved connectivity and enhanced cooperation with our 14 operating markets across Africa and with our other administrative offices.

Information on additional KPIs

An investor relations pack with information on the additional KPIs and balance sheet is available to download on

our website at   airtel.africa/investors. 

Strategic overview

The Group provides telecoms and mobile money services in 14 emerging markets of sub-Saharan Africa. Our markets are characterised by huge geographies with relatively sparse populations, high population growth rates, high proportions of youth in the population, low smartphone penetration, low data penetration and relatively unbanked populations. Unique mobile user penetration across the Group's footprint is around 47%, and banking penetration remains under 50%. These indicators illustrate the significant opportunity still available to Airtel Africa to enhance both digital and financial inclusion in the communities we serve, enriching and transforming their lives through digitalisation at the same time as growing our revenues profitably, across each of our key services of voice, data and mobile money.

The Group continued to invest in its network and distribution infrastructure to enhance both mobile connectivity and financial inclusion across our countries of operation. In particular, we continued to invest in expanding our 4G network footprint to increase data capacity in our networks to support future business growth, as well as deploying new sites, especially in rural areas, to enhance coverage and connectivity.

We describe our 'Win with' strategy through six strategic pillars. Our customers lie at the core of our strategy, through our fundamental purpose around transforming lives.

Our focus on digitalisation, of both our products and services and our internal systems and processes, increasingly functions as a catalyst, or an 'accelerator', for each of our strategic pillars.

Underpinning our Group strategy is our sustainability platform, describing our continued commitment to both driving sustainable development and acting as a responsible business. We launched our sustainability strategy earlier this year, describing our commitment to developing the infrastructure and services that will drive both digital and financial inclusion for people across Africa and provides a framework to describe our contribution to the United Nations' Sustainable Development Goals ('SDGs'). We have four key pillars within our sustainability framework: 'Our business', 'Our people', 'Our communities' and 'Our environment'; and we have nine summary goals and commitments, along with corresponding programmes that address each of the 'material' identified topics of the business, covering data security, service quality, supply chain, people commitments, digital inclusion, financial inclusion, access to education, greenhouse gas emissions reduction and environmental stewardship.

This year, we continued to make strong progress across each of our core strategic pillars: 'Win with network', 'Win with distribution' (renamed from the previous 'Win with customers'), 'Win with data', 'Win with mobile money', 'Win with cost' and 'Win with people'.

Win with network

The Group aims to continually provide a best-in-class network experience, including internet experience, to customers. We continued to invest in our network by expanding 4G coverage and building capacity to cater for the future needs of our customers and to continue providing them with high-speed data. Our expansion of 4G network capability across our footprint and connecting rural areas through deployment of new sites continued to be our two key focus areas. Our investment in the 4G network through single RAN technology has resulted in both expansion of our 4G coverage and enhanced network capacity. At the end of FY'22, 87.6% of our total sites are now on 4G, compared to 76.5% in the previous year. We are building a leading, modernised network that can provide the data capacity to meet rapidly growing demand, and enhanced connectivity and digitalisation needs of our markets. Our network data capacity has increased by 40.4% year on year, reaching 16,900+ TB per day, with additional capacity being added at only very marginal cost. We continued to modernise our network across all our countries of operation, with 96% of our sites now on single RAN.

The Group has added almost 10,000 km of additional fibre in the year, with total fibre now more than 64,500km.

The Group has also added additional spectrum in a few of our markets. We have added 10 MHz in the 2600 band in Malawi and 10 MHz in the 2100 band in Kenya. These allocations will help us to maximise network capacity and coverage.

Capital expenditure related to investment activities during FY'22 was $656m, excluding spectrum acquisitions and licence renewals.

Win with distribution (formerly named 'Win with customers')

Sub-Saharan Africa is characterised by low penetrated markets, with unique subscriber penetration at 47%. The Group's strategy is to build assured availability of service through deployment of exclusive retail footprint and ensuring sufficient resourcing to drive revenue generation at each distribution site.

The Group continued to build a unique mix of multi-brand and exclusive franchise channels, combined with a simplified and enhanced self-service app to provide a seamless customer onboarding experience. These have enabled us to add customers, resulting in customer base growth of 8.7% year on year (excluding Nigeria the customer base grew by 10.2%). This has also helped us to grow voice revenue by 15.4% in constant currency.

The Group continued its investment in strengthening our distribution network infrastructure, with a focus on rural distribution networks. During the period, the Group expanded its exclusive franchise stores, adding more than 15,000+ kiosks and mini-shops (taking the total to almost 53,000) across our footprint. The Group also added more than 43,000 activating entities in the year, up by 21%.

Win with data

The Group continued to invest in the expansion of our 4G network, adding significant data capacity to the network at only marginal cost, expanding both home broadband and enterprise business services to greater leverage the 4G network capacity; growing data ARPU and data revenue. We continue to focus on increasing smartphone ownership and increasing data usage at scale, largely via smartphone offerings through OEM (Original Equipment Manufacturer) device partnerships, and through expanding our network of smartphone device selling outlets.

Our improved 4G network supported our drive to increase smartphone penetration, data customer penetration and the uptake of larger data volumes, resulting in greater data consumption per customer. Smartphone penetration was up by 1.2 percentage point to 34.2% and our data customer base grew by 15.2%, now representing 36.4% of our total customer base.

Data usage per customer reached 3.4 GB per month (from 2.6 GB) led by an increase in smartphone penetration and expansion of our home broadband and enterprise customers. This helped us to grow data revenue by 34.6% in constant currency. Growing penetration and the data usage of customers (particularly 3G and 4G) helped us to grow data ARPU by 18.6%. 4G data usage constituted 66.7% of total data usage on the network in FY'22 with 4G data usage per customer reaching 5.5 GB per month in FY'22, up by 10.7% on FY'21.

Win with mobile money

The Group has continued to drive financial inclusion. The low penetration of traditional banking services across our footprint leaves a large number of unbanked customers whose needs can be largely fulfilled through mobile money services. We aim to drive the uptake of Airtel Money services in all our markets, harnessing the ability of our profitable mobile money business model to enhance financial inclusion in some of the most 'unbanked' populations in the world.

The Group continued to expand our exclusive distribution network of kiosks, mini-shops and Airtel Money branches, so that customers can access their cash with relative ease. We have increased the number of kiosks and mini-shops by 40.0% and Airtel money branches by almost 60%. Additionally, we have increased the number of (non-exclusive) mobile money agents by 41.7%. Throughout the year, the expansion of our mobile money product portfolio, both through partnerships with leading financial institutions and through expansion of our merchant ecosystem, have further strengthened our mobile money propositions.

Our distribution expansion and enhanced offerings helped drive 20.7% growth in our mobile money customer base, now serving over 26.2 million customers and representing 20.4% of our total customer base (31.1% excluding Nigeria).

Mobile money continues to be one of our fastest growing services, delivering revenue growth of 34.9% in FY'22. It is an increasingly important part of our business, delivering $64.4bn of annual transaction value and accounting for 11.7% of total revenue in FY'22.

Mobile money ARPU increased by 12.2% in FY'22, driven by increased transaction values and higher contributions from merchant payments, cash transactions, P2P transfers and mobile services recharges through Airtel Money.

Win with cost

Our operating cost model is focused on enhancing cost efficiency through changes in the operating design and digitalisation initiatives. We embrace robust cost discipline and continuously seek to improve our processes to reduce operating costs, delivering one of the highest underlying EBITDA margins in the industry. We also use the latest technology to optimally design our networks and improve our capital expenditure efficiency; enabling us to build large incremental capacities at lower marginal cost.

As we continued to expand our business, various cost efficiency initiatives were undertaken during the period, relating mainly to:

(i) reduced operating costs at sites due to single RAN; (ii) optimisation of incremental network/site requirements through efficient spectrum utilisation (iii) remodelling our managed services through diversification of supply; and (iv) bandwidth capacity optimisation and implementation of dynamic and contextual interactive voice recognition ('IVR') for more efficient customer interactions.

These have contributed to an expansion of our underlying EBITDA margin by 294 basis points in reported currency and 296 basis points in constant currency. Our underlying EBITDA margin was 49.0% for FY'22, and our operating expenditure as a percentage of revenue improved by 3.0 percentage points.

Win with people

Our values of being Alive, Inclusive and Respectful, underpin our vision of being a responsible employer. We work in highly collaborative teams across the 18 countries in which we have operations or offices, and with 35 different nationalities represented.

Our talented and diverse people have continued to demonstrate incredible dedication and resilience. Their commitment to our business and customers has been a key driver to our long-term growth and as we continue to transform lives in the markets we serve.

Diversity and inclusion remain a key focus area for our business. We made further progress this year with 28% of our ExCo (including OpCos) now being women, up by 5.0 percentage points, with women representing 26% of our total workforce. And we continued to expand financial and digital inclusion to the communities we serve.

Investing in opportunities for learning and development of our people across all our operations has been accelerated through the launch of several digital platforms. Building and maintaining strong functional expertise and capability is a key driver of our performance.

We are committed to employee engagement and upward feedback through regular market visits, town-halls and open mic sessions, which enable us to understand issues that really matter to our colleagues, our workplaces and business operations.

Our reward system is based on simple and consistent metrics that drive a high-performance culture and our people performance metrics are aligned to our business priorities.

We continue to make strides to be an employer of choice with a diverse and inclusive work environment.

Financial review for the year ended 31 March 2022

Nigeria

 
 Description               Unit      Year ended                                Quarter ended 
                             of 
                          measure 
----------------------  ----------  ----------------------------------------  ---------------------------------------- 
                                     Mar-22   Mar-21   Reported    Constant    Mar-22   Mar-21   Reported    Constant 
                                                        currency    currency                      currency    currency 
                                                         change      change                        change      change 
                                                           %           %                             %           % 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Summarised statement 
  of operations 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Revenue                    $m       1,878    1,552      21.0%       27.7%      507      422       20.0%       24.2% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Voice revenue 
   (1)                      $m        985      897       9.8%        15.9%      268      240       11.7%       15.6% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Data revenue              $m        734      549       33.7%       41.1%      194      152       28.0%       32.5% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Other revenue 
   (1)                      $m        159      106       50.0%       58.2%       44       30       46.0%       51.1% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying EBITDA          $m       1,037     839       23.6%       30.4%      279      232       20.6%       24.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Underlying EBITDA                                       115         114 
   margin                    %       55.2%    54.1%       bps         bps      55.1%    54.8%     27 bps      25 bps 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Depreciation 
  and amortisation          $m       (268)    (236)      13.2%       19.5%      (71)     (60)      19.8%       23.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating exceptional      $m         -        -          -           -         -        -          -           - 
  items 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating profit           $m        769      602       27.8%       34.8%      208      172       21.4%       25.7% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Capex                      $m        251      275      (8.8%)      (8.8%)       69       97      (28.9%)     (28.9%) 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating free 
  cash flow                 $m        786      564       39.3%       50.7%      210      135       56.2%       64.3% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating KPIs 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 ARPU                        $        3.8      3.0       26.1%       33.0%      3.9      3.3       18.7%       22.9% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Total customer 
  base                    million     44.4     42.0      5.8%                   44.4     42.0      5.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Data customer 
  base                    million     20.3     17.7      14.9%                  20.3     17.7      14.9% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 

(1) Voice revenue includes inter-segment revenue of $1m and other revenue includes inter-segment revenue of $2m in the year ended 31 March 2022. Excluding inter-segment revenue, voice revenue was $984m and other revenue was $157m in the year ended 31 March 2022.

Reported currency revenue grew by 21.0% to $1,878m with constant currency growth of 27.7%. The differential in growth rates was due to devaluation of the Nigerian naira by 5.6%. The constant currency revenue growth of 27.7% was driven by both customer base growth of 5.8% and ARPU growth of 33.0% largely driven by higher data and voice usage.

Voice revenue grew by 15.9%, driven by an increase in voice usage per customer of 20.8% which led to an ARPU increase of 20.7%. Customer base growth was affected by the NIN-SIM linkage regulations in Nigeria during the first half of the year but returned to growth, adding 4 million customers in the second half of the year, achieving net growth of 2.4 million customers over the full year. The number of regulatory approved outlets expanded to over 19,100 as of 31 March 2022.

Data revenue grew by 41.1% in constant currency, driven by data customer base growth of 14.9% and data ARPU growth of 37.6%, led by growth in data usage per customer to 4.0 GB per month (from 2.8 GB in the prior year). Our continued 4G network expansion and increased smartphone penetration has supported data usage growth. Almost 99% of our sites in Nigeria are now delivering 4G, and smartphone penetration of our customers has increased by almost 1 percentage point. Data revenue accounted for 39.1% of total revenue in Nigeria in the year, up by 3.7% on the prior year. For Q4'22, 43.6% of our data customer base were 4G users, contributing to 76.0% of total data usage. Data usage per customer reached 4.2 GB per month and 4G data usage per customer reached 6.5 GB per month, a significant increase on the 4.6 GB usage per customer per month of Q4'21.

Other revenue grew by 58.2%, with the main contribution coming from the growth in value added services revenue, led by airtime credit services.

Underlying EBITDA was $1,037m, growing by 23.6% in reported currency and representing constant currency growth of 30.4%. Underlying EBITDA margin improved to 55.2%, an increase of 115 basis points in reported currency and 114 basis points in constant currency, as a result of improvements in operational efficiency.

Operating free cash flow was $786m, up by 50.7%, due to the expansion of underlying EBITDA.

East Africa (1)

 
 Description               Unit      Year ended                                Quarter ended 
                             of 
                          measure 
----------------------  ----------  ----------------------------------------  ---------------------------------------- 
                                     Mar-22   Mar-21   Reported    Constant    Mar-22   Mar-21   Reported    Constant 
                                                        currency    currency                      currency    currency 
                                                         change      change                        change      change 
                                                           %           %                             %           % 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Summarised statement 
  of operations 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Revenue (2)                $m       1,717    1,381      24.3%       22.7%      436      358       21.9%       17.9% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Voice revenue 
   (3)                      $m        783      650       20.3%       19.2%      196      164       19.4%       16.3% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Data revenue              $m        457      354       29.1%       27.4%      118       92       28.1%       24.2% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Mobile money revenue 
   (4)                      $m        411      291       41.5%       37.1%      111       79       39.9%       31.5% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Other revenue 
   (3)                      $m        152      150       1.1%        1.6%        34       38      (10.0%)     (10.7%) 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying EBITDA          $m        848      631       34.4%       31.6%      218      168       29.4%       23.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Underlying EBITDA                                       369         331                           291         238 
   margin                    %       49.4%    45.7%       bps         bps      49.9%    47.0%       bps         bps 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Depreciation and 
  amortisation              $m       (240)    (221)      8.7%        7.9%       (60)     (57)      6.4%        4.1% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating exceptional 
  items (5)                 $m        (32)      -          -           -        (32)      -          -           - 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating profit           $m        576      408       41.0%       36.8%      126      111       12.6%       4.6% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Capex                      $m        271      249       8.8%        8.8%       111       81       36.5%       36.5% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating free 
  cash flow                 $m        577      382       51.1%       46.8%      107       87       22.8%       11.6% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating KPIs 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 ARPU                        $        2.5      2.3       12.2%       10.7%      2.6      2.3       12.5%       8.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Total customer 
  base                    million     57.2     53.1      7.8%                   57.2     53.1      7.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Data customer 
  base                    million     18.3     16.2      12.9%                  18.3     16.2      12.9% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Mobile money customer 
  base                    million     21.7     18.0      20.5%                  21.7     18.0      20.5% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 

(1) The East Africa business region includes Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia.

(2) Revenue includes intra-segment eliminations of $85m for the year ended 31 March 2022 and $64m for the prior year.

(3) Voice revenue includes inter-segment revenue of $1m and other revenue includes inter-segment revenue of $6m in the year ended 31 March 2022. Excluding inter-segment revenue, voice revenue was $782m and other revenue was $146m in the year ended 31 March 2022.

(4) Mobile money revenue post intra-segment eliminations with mobile services was $326m for the year ended 31 March 2022 and $227m for the prior year.

(5 ) Operating exceptional items of $32m in the year ended 31 March 2022 consist of $12m provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party and $20m cost of agreeing historical spectrum fees in one of the Group's subsidiaries.

East Africa revenue in reported currency grew by 24.3% to $1,717m with constant currency revenue growth of 22.7%. This growth was delivered across all key services; voice revenue grew by 19.2%, data revenue by 27.4% and mobile money revenue by 37.1% in constant currency. Reported currency revenue growth was slightly higher than constant currency rates due to currency appreciation in the Ugandan shilling and Zambian kwacha, partially offset by currency devaluation in the Malawian kwacha.

Voice revenue grew by 19.2%, driven by both customer base growth of 7.8% and voice ARPU growth of 7.5%. The customer base growth was largely driven by expansion of both network coverage and the distribution network. Voice usage per customer increased by 5.8% to 349 minutes per customer per month, thereby driving voice ARPU growth of 7.5%.

Data revenue grew by 27.4%, largely driven by data customer base growth of 12.9% and data ARPU growth of 5.6%. We continued to invest in our network and expanded our 4G network infrastructure which helped us to grow both data usage and the data customer base. The data customer base increased 12.9% to 18.3 million, with 4G customers accounting for 40.5% of our total data customer base and contributing 60.2% of total data usage. 85.8% of our total sites are now on 4G, compared with 76.4% at the end of the prior year. Data usage per customer reached 3.3 GB per customer per month, up by 22.1%.

Mobile money revenue was up by 37.1%, largely driven by growth in Zambia, Uganda and Malawi. The mobile money customer base grew by 20.5% and mobile money ARPU increased by 14.5%, due largely to expansion of our distribution network. The transaction value per customer reached $183 per customer per month, up by 16.0% from $153 per customer per month in the prior year. The slowdown in mobile money revenue growth was due to implementation of additional levies by the Government of Tanzania on mobile money withdrawal and P2P transactions from July 2021, which were subsequently revised downwards in early September 2021.

The underlying EBITDA margin reached 49.4%, an improvement of 331 basis points in constant currency, as a result of strong revenue growth and improvements in operating efficiency.

Operating free cash flow was $577m, up by 46.8% due largely to the expansion of underlying EBITDA.

Francophone Africa (1)

 
 Description               Unit      Year ended                                Quarter ended 
                             of 
                          measure 
----------------------  ----------  ----------------------------------------  ---------------------------------------- 
                                     Mar-22   Mar-21   Reported    Constant    Mar-22   Mar-21   Reported    Constant 
                                                        currency    currency                      currency    currency 
                                                         change      change                        change      change 
                                                           %           %                             %           % 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Summarised statement 
  of operations 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying revenue 
  (2)                       $m       1,131     964       17.2%       17.2%      282      260       8.4%        12.2% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Voice revenue 
   (3)                      $m        594      541       9.9%        10.0%      148      143       3.3%        7.3% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Data revenue              $m        334      254       31.5%       31.0%       84       70       18.9%       22.6% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Mobile money 
   revenue (4)              $m        142      110       29.0%       29.6%       36       31       17.7%       22.6% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Other revenue 
   (3)                      $m        104       96       8.9%        8.3%        26       25       3.6%        5.3% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying EBITDA          $m        464      364       27.6%       27.7%      118      110       7.4%        10.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Underlying EBITDA                                       332         337                          (39)        (53) 
   margin                    %       41.0%    37.7%       bps         bps      41.7%    42.1%       bps         bps 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Depreciation 
  and amortisation          $m       (203)    (207)     (2.0%)      (2.1%)      (48)     (52)     (8.6%)      (5.8%) 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating exceptional 
  item (5)                  $m         0        14         -           -         0        1          -           - 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating profit 
  (5)                       $m        261      170       53.7%       54.6%       70       59       20.1%       24.8% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Capex                      $m        125       88       42.0%       42.0%       42       32       30.5%       30.5% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating free 
  cash flow                 $m        339      276       23.0%       23.1%       76       78      (2.1%)       2.6% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating KPIs 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 ARPU                        $        3.7      3.8      (1.9%)      (1.9%)      3.6      3.9      (8.2%)      (5.0%) 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Total customer 
  base                    million     26.8     23.1      15.9%                  26.8     23.1      15.9% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Data customer 
  base                    million     8.2      6.7       21.3%                  8.2      6.7       21.3% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Mobile money 
  customer base           million     4.4      3.6       21.8%                  4.4      3.6       21.8% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 

(1) The Francophone Africa business region includes Chad, Democratic Republic of the Congo, Gabon, Madagascar, Niger, Republic of the Congo, and Seychelles.

(2) Underlying revenue includes intra-segment eliminations of $44m for the year ended 31 March 2022 and $36m for the prior year. It also excludes one-time exceptional revenue of $20m relating to a settlement in Niger in the year ended 31 March 2021.

(3 () Voice revenue includes inter-segment revenue of $2m in the year ended 31 March 2022. Excluding inter-segment revenue, voice revenue was $592m in the year ended 31 March 2022.

(4 () Mobile money revenue post intra-segment eliminations with mobile services was $98m in the year ended 31 March 2022 and $74m in the prior year.

(5) Operating exceptional items in the prior year include exceptional revenue relating to a one-time settlement in Niger for $20m partially offset by one-off cost of $6m in Francophone Africa.

Underlying revenue grew by 17.2% both in reported currency and in constant currency. This growth was largely driven by DRC, Chad, Niger and Gabon. The slight currency devaluation of the Central African franc was offset by appreciation in the Seychelles rupee.

Voice underlying revenue grew by 10.0% in constant currency, driven by customer base growth of 15.9% partially offset by voice ARPU decline of 7.9%. The ARPU decline was mainly driven by reductions in international call revenue and local incoming call revenue (the latter due to changes in local interconnect rates in Gabon, Niger and Republic of the Congo). The customer base growth was driven by expansion of both network coverage and distribution infrastructure.

Data revenue grew by 31.0% in constant currency, supported by both customer base growth of 21.3% and data ARPU growth of 1.3%. We continued to expand our 4G network (65.3% of sites now on 4G) and data network coverage, and we enhanced our distribution infrastructure supporting further growth of the data customer base. 30.5% of the Francophone Africa customer base now use data services. 4G data usage contributes 64.1% of total data usage and 44.8% of data users were 4G customers. Data usage per customer was 2.4 GB per month (up 23.1% on the prior year) while 4G data usage per customer reached 4.5 GB (up 3.4%).

Mobile money revenue grew by 29.6% in constant currency, driven by both customer base growth of 21.8% and mobile money ARPU growth of 5.2%. The mobile money ARPU growth was driven by an increase in the transaction value per customer of 8.3%, now at $422 per customer per month. Expansions of our exclusive distribution network and the number of agents helped us to grow the mobile money customer base by 21.8%.

Underlying EBITDA grew by 27.6% with a margin of 41.0%, an improvement of 332 basis points in reported currency and 337 basis points in constant currency. This underlying EBITDA growth was driven by both revenue growth and increased efficiency in operating expenses.

Operating free cash flow was $339m, up 23.1%, due to the expansion in underlying EBITDA.

Mobile services

 
 Description               Unit      Year ended                                Quarter ended 
                             of 
                          measure 
----------------------              ----------------------------------------  ---------------------------------------- 
                                     Mar-22   Mar-21   Reported    Constant    Mar-22   Mar-21   Reported    Constant 
                                                        currency    currency                      currency    currency 
                                                         change      change                        change      change 
                                                           %           %                             %           % 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Summarised statement 
  of operations 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying revenue 
  (1)                       $m       4,294    3,592      19.6%       22.0%     1,112     955       16.5%       18.3% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying EBITDA          $m       2,077    1,639      26.8%       29.7%      542      456       18.9%       20.4% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Underlying EBITDA                                       276         286                           100 
   margin                    %       48.4%    45.6%       bps         bps      48.7%    47.7%       bps       86 bps 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Depreciation 
  and amortisation          $m       (697)    (654)      6.5%        8.4%      (176)    (165)      6.5%        8.3% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating exceptional 
  items (2)                 $m        (32)      14         -           -        (32)      1          -           - 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating profit           $m       1,348     995       35.5%       39.0%      335      292       14.8%       16.1% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Capex                      $m        621      580       7.1%        7.1%       217      185       17.1%       17.1% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating free 
  cash flow                 $m       1,456    1,059      37.6%       42.6%      325      271       20.0%       22.9% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating KPIs 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Mobile voice 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Voice revenue             $m       2,358    2,083      13.2%       15.4%      611      547       11.8%       13.6% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Customer base           million    128.4    118.2      8.7%                  128.4    118.2      8.7% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Voice ARPU                 $        1.6      1.5       5.9%        8.0%       1.6      1.5       3.9%        5.6% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Mobile data 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Data revenue              $m       1,525    1,157      31.8%       34.6%      397      315       26.0%       27.9% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Data customer 
   base                   million     46.7     40.6      15.2%                  46.7     40.6      15.2% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Data ARPU                  $        2.9      2.5       16.1%       18.6%      2.9      2.6       10.5%       12.1% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 

(1) Mobile service revenue after inter-segment eliminations was $4,290m in the year ended 31 March 2022 and $3,587m in the prior year. Underlying revenue for Mobile service excludes one-time exceptional revenue of $20m relating to a settlement in Niger in the year ended 31 March 2021.

(2) Operating exceptional items of $32m in the year ended 31 March 2022 consist of a $12m provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party and $20m costs of agreeing historical spectrum fees in one of the Group's subsidiaries. The prior year operating exceptional items include exceptional revenue on account of a one-time settlement in Niger amounting to $20m, partially offset by one-off costs of $6m in Francophone Africa.

Mobile services underlying revenue in reported currency grew by 19.6%, with constant currency growth of 22.0%, supported by growth in both voice and data services.

Voice underlying revenue grew by 15.4% in constant currency, supported by customer base growth of 8.7% and voice ARPU growth of 8.0%. The customer base growth was driven by expansion of our network and distribution infrastructure. The slowdown in customer base growth was due to the introduction of new SIM registration regulations in Nigeria. Excluding Nigeria, the customer base grew by 10.2%. In Nigeria, our customer base returned to growth in the second half of the year, adding a net 2.4 million customers for the full year. Voice minutes per customer reached 257 minutes per month, up by 9.8%, resulting in voice ARPU growth of 8.0%. Total network minutes increased by 17.3%.

Data revenue continued to be a key driver of growth, up by 34.6% in constant currency. This was driven by data customer base growth of 15.2% and data ARPU growth of 18.6%. Our continued investment in our network and expansion of our 4G network infrastructure helped us to expand our data customer base. 87.6% of our Group sites are now operating on 4G, compared with 76.5% in the prior year. 36.4% of our total customer base were data users, up from 34.3% in the prior year. 4G data usage per customer increased to 5.5 GB per month compared with 5.0 GB in the prior year. 4G data usage reached 5.9 GB per customer per month for Q4'22. Total data usage per customer reached 3.4 GB per month, up 31.0% from the 2.6 GB of the prior year. At the end of the year, 42.6% of the total data customer base were 4G data customers, up from 36.4% in the prior year. The increase in 4G data customer penetration has helped to drive data ARPU growth.

Data revenue contribution reached 32.3% of total Group revenue in the year, up from 29.8% in the prior year.

Mobile money

 
 Description               Unit      Year ended                                Quarter ended 
                             of 
                          measure 
----------------------              ----------------------------------------  ---------------------------------------- 
                                     Mar-22   Mar-21   Reported    Constant    Mar-22   Mar-21   Reported    Constant 
                                                        currency    currency                      currency    currency 
                                                         change      change                        change      change 
                                                           %           %                             %           % 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Summarised statement 
  of operations 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Revenue (1)                $m        553      401       37.9%       34.9%      147      110       33.6%       29.0% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Underlying EBITDA          $m        270      195       38.1%       34.2%       72       54       33.6%       27.9% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Underlying EBITDA                                                  (27)                                      (39) 
   margin                    %       48.7%    48.7%      5 bps        bps      48.7%    48.7%      0 bps        bps 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Depreciation 
  and amortisation          $m        (14)     (10)      34.8%       30.9%      (4)      (4)      (4.6%)      (7.4%) 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating profit           $m        256      185       38.3%       34.4%       68       50       36.5%       30.5% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Capex                      $m         25       32      (19.9%)     (19.9%)      5        25      (79.8%)     (79.8%) 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating free 
  cash flow                 $m        245      163       49.6%       44.8%       67       29      129.7%      122.3% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Operating KPIs 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 Mobile money 
  key KPIs 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Transaction value         $m       64,436   46,009     40.1%       37.0%     16,792   12,538     33.9%       29.2% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Active customers        million     26.2     21.7      20.7%                  26.2     21.7      20.7% 
----------------------  ----------  -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
  Mobile money 
   ARPU                      $        1.9      1.7       14.7%       12.2%      1.9      1.7       12.7%       8.7% 
----------------------              -------  -------  ----------  ----------  -------  -------  ----------  ---------- 
 

(1) Mobile money service revenue post inter-segment eliminations with mobile services was $424m in the year ended 31 March 2022 and $301m in the prior year.

Reported currency mobile money revenue grew by 37.9% with a constant currency growth of 34.9%. The slowdown in mobile money revenue growth since July 2021 has been due to the implementation of levies by the Government of Tanzania on mobile money withdrawal and P2P transactions (subsequently revised downwards in early September 2021). Excluding Tanzania, revenue grew by 41.6% in constant currency. The constant currency revenue growth of 34.9% was driven by both customer base growth of 20.7% and ARPU growth of 12.2%. The mobile money customer base growth was due to the expansion of our distribution network, particularly our exclusive channels of Airtel money branches and kiosks. We continued to expand our mobile money portfolio through partnerships with leading financial institutions, and the expansion of our merchant ecosystem further strengthened our mobile money propositions. The increase in transaction value per customer to $223 per month, up by 13.9%, led to mobile money ARPU growth of 12.2%.

Q4'22 annualised transaction value reached $67.2bn in reported currency, with mobile money revenue contributing 12.0% of total revenue in the quarter.

The mobile money customer base grew by 20.7% to 26.2 million in the year. Mobile money customer base penetration reached 20.4%, an increase of 2 percentage points. The ARPU growth of 12.2% was largely driven by an increase in transaction values and higher contributions from cash transactions, merchant payments, P2P transfers and mobile service recharges through Airtel Money.

Underlying EBITDA was $270m, up by 38.1% in reported currency, with a constant currency growth of 34.2%. The reported currency growth rate was higher than the constant currency growth rate due to appreciation in the Zambian kwacha. The underlying EBITDA margin for the year was 48.7%, broadly in line with the prior year.

Forward looking statements

This document contains certain forward-looking statements regarding our intentions, beliefs or current expectations concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the Group operates.

These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions.

It is believed that the expectations reflected in this document are reasonable, but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual future financial condition, performance and results to differ materially from the plans, goals, expectations and results expressed in the forward-looking statements and other financial and/or statistical data within this communication.

Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are uncertainties related to the following: the impact of competition from illicit trade; the impact of adverse domestic or international legislation and regulation; changes in domestic or international tax laws and rates; adverse litigation and dispute outcomes and the effect of such outcomes on Airtel Africa's financial condition; changes or differences in domestic or international economic or political conditions; the ability to obtain price increases and the impact of price increases on consumer affordability thresholds; adverse decisions by domestic or international regulatory bodies; the impact of market size reduction and consumer down-trading; translational and transactional foreign exchange rate exposure; the impact of serious injury, illness or death in the workplace; the ability to maintain credit ratings; the ability to develop, produce or market new alternative products and to do so profitably; the ability to effectively implement strategic initiatives and actions taken to increase sales growth; the ability to enhance cash generation and pay dividends and changes in

the market position, businesses, financial condition, results of operations or prospects of Airtel Africa.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements contained in this document reflect the knowledge and information available to Airtel Africa at the date of preparation of this document and Airtel Africa undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.

No statement in this communication is intended to be, nor should be construed as, a profit forecast or a profit estimate and no statement in this communication should be interpreted to mean that earnings per share of Airtel Africa plc for the current or any future financial periods would necessarily match, exceed or be lower than the historical published earnings per share of Airtel Africa plc.

Financial data included in this document are presented in US dollars rounded to the nearest million. Therefore, discrepancies in the tables between totals and the sums of the amounts listed may occur due to such rounding. The percentages included in the tables throughout the document are based on numbers calculated to the nearest $1,000 and therefore minor rounding differences may result in the tables. Growth metrics are provided on a constant currency basis unless otherwise stated. The Group has presented certain financial information on a constant currency basis. This is calculated by translating the results for the current financial year and prior financial year at a fixed 'constant currency' exchange rate, which is done to measure the organic performance of the Group. Growth rates for our reporting regions and service segments are provided in constant currency as this better represents the underlying performance of the business.

Consolidated Financial Statements

Consolidated Statement of Comprehensive Income

(All amounts are in US Dollar Millions; unless stated otherwise)

 
                                                                               For the year ended 
                                                                         ------------------------------ 
                                                                  Notes   31 March 2022   31 March 2021 
                                                                         --------------  -------------- 
 Income 
 Revenue                                                            5             4,714           3,908 
 Other income                                                                        10              11 
                                                                                  4,724           3,919 
 
 Expenses 
  Network operating expenses                                                        817             694 
  Access charges                                                                    407             376 
  License fee and spectrum usage charges                                            244             198 
  Employee benefits expense                                                         297             275 
  Sales and marketing expenses                                                      224             187 
  Impairment loss on financial assets                                                 5               7 
  Other operating expenses                                                          451             382 
  Depreciation and amortisation                                                     744             681 
                                                                                  3,189           2,800 
 
 Operating profit                                                                 1,535           1,119 
 
 Finance costs                                                                      441             432 
 Finance income                                                                    (19)             (9) 
 Other non-operating income                                                       (111)               - 
 Share of profit from associate                                                     (0)             (1) 
 Profit before tax                                                                1,224             697 
 
 Income tax expense                                                 7               469             282 
 Profit for the year                                                                755             415 
 
 Profit before tax (as presented above)                                           1,224             697 
 Less: Exceptional items (net)                                      6              (60)            (14) 
 Underlying profit before tax                                                     1,164             683 
---------------------------------------------------------------  ------  --------------  -------------- 
 
 Profit after tax (as presented above)                                              755             415 
 Less: Exceptional items (net)                                      6              (62)            (50) 
 Underlying profit after tax                                                        693             365 
---------------------------------------------------------------  ------  --------------  -------------- 
 
 
 
                                                                               For the year ended 
                                                                         ------------------------------ 
                                                                  Notes   31 March 2022   31 March 2021 
                                                                         --------------  -------------- 
 
 Profit for the year (continued from previous page)                                 755             415 
 
 
    Other comprehensive income ('OCI') 
  Items to be reclassified subsequently to profit or loss: 
       Loss due to foreign currency translation differences                         (4)           (147) 
        Tax (expense)/credit on above                                               (3)               9 
         Share of OCI of associate                                                    1               0 
       Net loss on net investments hedge                                            (8)            (11) 
                                                                                   (14)           (149) 
                                                                         --------------  -------------- 
  Items not to be reclassified subsequently to profit or loss: 
      Re-measurement loss on defined benefit plans                                  (0)             (0) 
      Tax credit on above                                                             0               0 
                                                                                    (0)             (0) 
                                                                         --------------  -------------- 
 
  Other comprehensive loss for the year                                            (14)           (149) 
                                                                         --------------  -------------- 
 
  Total comprehensive income for the year                                           741             266 
                                                                         ==============  ============== 
 
  Profit for the year attributable to:                                              755             415 
 
       Owners of the Company                                                        631             339 
       Non-controlling interests                                                    124              76 
 
  Other comprehensive loss for the year attributable to:                           (14)           (149) 
 
       Owners of the Company                                                       (12)           (140) 
       Non-controlling interests                                                    (2)             (9) 
 
  Total comprehensive income for the year attributable to:                          741             266 
 
       Owners of the Company                                                        619             199 
       Non-controlling interests                                                    122              67 
 
 
 Earnings per share 
       Basic                                                        8             16.8c            9.0c 
       Diluted                                                      8             16.8c            9.0c 
 
 
 Consolidated Statement of Financial Position 
  (All amounts are in US Dollar Millions; unless stated otherwise)                          As of 
                                                                               ------------------------------ 
                                                                       Notes    31 March 2022   31 March 2021 
                                                                               --------------  -------------- 
 
 Assets 
 
    Non-current assets 
          Property, plant and equipment                                  9              2,214           2,066 
          Capital work-in-progress                                       9                189             166 
          Right of use assets                                                           1,109             799 
          Goodwill                                                    10 & 11           3,827           3,835 
          Other intangible assets                                                         632             558 
          Intangible assets under development                                               2             177 
          Investment in associate                                                           6               4 
          Financial assets 
             - Investments                                                                  0               0 
             - Derivative instruments                                                       3               6 
             - Others                                                                       7              17 
          Income tax assets (net)                                                          22              33 
          Deferred tax assets (net)                                                       222             314 
          Other non-current assets                                                        134             112 
                                                                               --------------  -------------- 
                                                                                        8,367           8,087 
 
    Current assets 
            Inventories                                                                     3               7 
            Financial assets 
                - Derivative instruments                                                    3               6 
                - Trade receivables                                                       123             113 
                - Cash and cash equivalents                             12                638             813 
                - Other bank balances                                   12                378             282 
                - Balance held under mobile money trust                                   513             440 
                - Others                                                                  124              66 
            Other current assets                                                          215             147 
            Assets of disposal group classified as held for sale                            -              31 
                                                                                        1,997           1,905 
  Total assets                                                                         10,364           9,992 
                                                                               ==============  ============== 
 
 
 
 
                                                          Notes                        As of 
                                                                 ------------------------------------------------- 
                                                                  31 March 2022                      31 March 2021 
                                                                 --------------  --------------------------------- 
 
     Current liabilities 
          Financial liabilities 
            - Borrowings                                   13               786                              1,468 
             - Lease liabilities                                            323                                240 
             - Derivative instruments                                         9                                  7 
             - Trade payables                                               404                                366 
             - Mobile money wallet balance                                  496                                432 
             - Others                                                       428                                448 
          Provisions                                                         69                                 65 
          Deferred revenue                                                  162                                135 
          Current tax liabilities (net)                                     220                                173 
          Other current liabilities                                         176                                151 
          Liabilities of disposal group classified as 
           held for sale                                                      -                                 19 
                                                                          3,073                              3,504 
 
  Net current liabilities                                               (1,076)                            (1,599) 
 
    Non-current liabilities 
          Financial liabilities 
            - Borrowings                                   13             1,486                              1,871 
            - Lease liabilities                                           1,337                              1,037 
            - Put option liability                         4(g)             579                                  - 
            - Derivative instruments                                          -                                  6 
            - Others                                                         88                                 91 
          Provisions                                                         20                                 25 
          Deferred tax liabilities (net)                                    114                                 81 
          Other non-current liabilities                                      18                                 24 
                                                                 --------------  --------------------------------- 
                                                                          3,642                              3,135 
 
  Total liabilities                                                       6,715                              6,639 
                                                                 ==============  ================================= 
 
  Net Assets                                                              3,649                              3,353 
                                                                 ==============  ================================= 
 
    Equity 
             Share capital                                 14             3,420                              3,420 
             Retained earnings                                            3,436                              2,975 
             Other reserves                                             (3,354)                            (2,990) 
                                                                 --------------  --------------------------------- 
    Equity attributable to owners of the company                          3,502                              3,405 
          Non-controlling interests ('NCI')                                 147                               (52) 
                                                                 --------------  --------------------------------- 
    Total equity                                                          3,649                              3,353 
                                                                 ==============  ================================= 
 
 
     The consolidated financial statements (company registration number: 11462215) were approved 
     by the Board of directors and authorised for issue on 10 May 2022 and were signed on its behalf 
     by: 
 
     Olusegun Ogunsanya 
     Chief Executive Officer 
     10 May 2022 
 
 
 
 
 
 Consolidated Statement of Changes in Equity (All amounts are in US Dollar Millions; unless 
  stated otherwise) 
                                        Equity attributable to owners of the company                      Non-controlling   Total 
                                                                                                          interests (NCI)   equity 
                     ----------------------------------------------------------------------------------  ---------------- 
                           Share Capital        Retained        Other reserves              Equity 
                                                earnings                               attributable to 
                                                                                        owners of the 
                                                                                           company 
                     ------------------------  ---------  --------------------------  -----------------  ---------------- 
 
                          No of        Amount              Transactions     Other 
                        shares(2)                            with NCI     components 
                                                             reserve      of equity 
                                                          -------------  ----------- 
 
   As of 1 April 
    2020               6,839,896,081    3,420      2,805          (585)      (2,252)              3,388             (107)    3,281 
 
   Profit for the 
    year                           -        -        339              -            -                339                76      415 
   Other 
    comprehensive 
    loss                           -        -        (0)              -        (140)              (140)               (9)    (149) 
                     ---------------                                     -----------  -----------------  ---------------- 
   Total 
    comprehensive 
    income                         -        -        339              -        (140)                199                67      266 
   Transaction with 
   owners of equity 
   Employee 
    share-based 
    payment reserve                -        -        (0)              -            0                  0                 -        0 
   Purchase of own 
    shares                         -        -          -              -          (4)                (4)                 -      (4) 
   Transactions 
    with NCI                       -        -          -            (9)            -                (9)                 1      (8) 
   Dividend to 
    owners of the 
    company                        -        -      (169)              -            -              (169)                 -    (169) 
   Dividend 
    (including tax) 
    to NCI (1)                     -        -          -              -            -                  -              (13)     (13) 
   As of 31 March 
    2021               6,839,896,081    3,420      2,975          (594)      (2,396)              3,405              (52)    3,353 
                     ===============  =======  =========  =============  ===========  =================  ================  ======= 
 
   Profit for the 
    year                           -        -        631              -            -                631               124      755 
   Other 
    comprehensive 
    loss                           -        -        (0)              -         (12)               (12)               (2)     (14) 
                     ---------------                                     ----------- 
   Total 
    comprehensive 
    income                         -        -        631              -         (12)                619               122      741 
 
   Transaction with 
   owners of equity 
   Employee 
    share-based 
    payment reserve                -        -        (1)              -            3                  2                 -        2 
   Purchase of own 
    shares                         -        -          -              -          (6)                (6)                 -      (6) 
   Transactions 
    with NCI [Note 
    4 (g) & (h)]                   -        -          -          (348)          (1)              (349)               153    (196) 
   Dividend to 
    owners of the 
    company [Note 4 
    (a) & (b)]                     -        -      (169)              -            -              (169)                 -    (169) 
   Dividend 
    (including tax) 
    to NCI (1)                     -        -          -              -            -                  -              (76)     (76) 
   As of 31 March 
    2022               6,839,896,081    3,420      3,436          (942)      (2,412)              3,502               147    3,649 
                     ===============  =======  =========  =============  ===========  =================  ================  ======= 
 
   (1)      Dividend to NCI includes tax of USD 4m (March 2021: USD 0m). 
   (2)      Includes ordinary and deferred shares. 
 
 Consolidated Statement of Cash Flows (All amounts are in US Dollar Millions; unless stated 
  otherwise) 
                                                                                            For the year ended 
                                                                                      ------------------------------ 
                                                                                       31 March 2022   31 March 2021 
                                                                                      --------------  -------------- 
 Cash flows from operating activities 
 Profit before tax                                                                             1,224             697 
 Adjustments for - 
     Depreciation and amortization                                                               744             681 
     Finance income                                                                             (19)             (9) 
     Finance cost(s)                                                                             441             432 
     Share of profit of associate                                                                (0)             (1) 
     Other non-operating income adjustment [refer to note 4(c) and (f)]                        (111)               - 
     Other non-cash adjustments (1)                                                              (6)            (15) 
 
 Operating cash flow before changes in working capital                                         2,273           1,785 
 Changes in working capital 
     Increase in trade receivables                                                              (18)             (8) 
     Decrease / (Increase) in inventories                                                          4             (4) 
     Increase / (Decrease) in trade payables                                                      34            (38) 
     Increase in mobile money wallet balance                                                      64             139 
     Increase in provisions                                                                       14               1 
     Increase in deferred revenue                                                                 27              17 
     Decrease in income received in advance                                                        -             (1) 
     Increase in other financial and non financial liabilities                                    50              18 
     Increase in other financial and non financial assets                                      (144)            (48) 
 Net cash generated from operations before tax                                                 2,304           1,861 
     Income taxes paid                                                                         (293)           (195) 
 
 Net cash generated from operating activities (a)                                              2,011           1,666 
                                                                                      --------------  -------------- 
 
 Cash flows from investing activities 
     Purchase of property, plant and equipment and capital work-in-progress                    (717)           (645) 
     Proceeds from sale of tower assets [refer to note 4(c) and (d)]                             171               - 
     Purchase of intangible assets                                                              (22)           (270) 
     Maturity of deposits with bank                                                              301               - 
     Investment in deposits with bank (2)                                                      (388)           (257) 
     Proceeds from sale of tower subsidiary (net of cash acquired) [note 4(e) and 
     (f)]                                                                                         79               - 
     Interest received                                                                            19              14 
 Net cash used in investing activities (b)                                                     (557)         (1,158) 
                                                                                      --------------  -------------- 
 
 Cash flows from financing activities 
     Proceeds from sale of shares to non-controlling interests [refer to note 4(g)]              550               - 
     Acquisition of non-controlling interests [refer to note 4(h)]                             (164)             (7) 
     Purchase of own shares by ESOP trust                                                        (6)             (4) 
     Proceeds from issue of share to non-controlling interests                                     2               - 
     Proceeds from borrowings                                                                    973             407 
     Repayment of borrowings                                                                 (2,115)           (265) 
     Repayment of lease liabilities                                                            (251)           (208) 
     Dividend paid to non-controlling interests                                                 (48)             (9) 
     Dividend paid to owners of the Company                                                    (169)           (169) 
     Interest on borrowings and lease liabilities and other finance charges                    (370)           (317) 
     Payment on maturity of derivatives                                                          (9)             (3) 
 Net cash used in financing activities (c)                                                   (1,607)           (575) 
                                                                                      --------------  -------------- 
 
 Decrease in cash and cash equivalents during the year (a+b+c)                                 (153)            (67) 
 Currency translation differences relating to cash and cash equivalents                          (3)            (17) 
 
 Cash and cash equivalent as at beginning of the year                                          1,003           1,087 
 Cash and cash equivalents as at end of the year (Note 12) (3)                                   847           1,003 
                                                                                      ==============  ============== 
 

1. For the year ended 31 March 2022, this mainly includes movement in trade receivables impairment and other provisions. For the year ended 31 March 2021, this mainly includes recognition of revenue pertaining to earlier years on a cumulative catch-up basis, arising out of a non-cash settlement agreement entered with a customer in one of the Group's subsidiaries in Niger.

2. Includes investment in deposits with original maturity of more than 3 months and deposits placed against certain borrowings. These are included within other bank balances in the consolidated statement of financial position.

3. Includes balance held under mobile money trust of USD 513m (2021: USD 440m) on behalf of mobile money customers which are not available for use by the Group.

Notes to Consolidated Financial Statements

(All amounts are in US Dollar Millions; unless stated otherwise)

   1.   Corporate information 

Airtel Africa plc ('the company') is a public company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales (registration number 11462215). The registered address of the company is First Floor, 53/54 Grosvenor Street, London W1K 3HU, United Kingdom. The company listed on the London Stock Exchange (LSE) on 3 July 2019 and on the Nigerian Stock Exchange (NGX) on 9 July 2019. The company is a subsidiary of Airtel Africa Mauritius Limited ('the parent'), a company registered in Mauritius. The registered address of the parent is c/o IQ EQ Corporate Services (Mauritius) Ltd., 33, Edith Cavell Street, Port Louis, 11324, Mauritius.

The company, together with its subsidiary undertakings (hereinafter referred to as 'the Group') has operations in Africa. The principal activities of the Group and its associate consist of the provision of telecommunications and mobile money services.

   2.   Basis of preparation 

The results for the year ended 31 March 2022 are an abridged statement of the full annual report which was approved by the Board of Directors on 10 May 2022 and signed on its behalf on 10 May 2022. The consolidated financial statements within the full annual report are prepared in accordance with the requirements of the Companies Act 2006 and International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) and approved for use in the United Kingdom (UK) by the UK Accounting Standards Endorsement Board (UKEB).

The financial information set out above does not constitute the company's statutory accounts for the years ended 31 March 2022 and 2021, but is derived from those accounts. Statutory accounts for March 2021 have been delivered to the Registrar of Companies and those for 2022 will be delivered following the company's annual general meeting.

The financial information included in this release announcement does not itself contain sufficient information to comply with IFRS. The company will publish full financial statements that comply with IFRS, in June 2022.

All the amounts included in the financial statements are reported in United States dollars, with all values rounded to the nearest millions (USD m) except when otherwise indicated. Further, amounts which are less than half a million are appearing as '0'.

The accounting policies as set out in the following paragraphs of this note have been consistently applied by all the Group entities to all the periods presented in these financial statements.

   3.   Going concern 

These consolidated financial statements have been prepared on a going concern basis. In making this going concern assessment, the Group has considered cash flow projections to June 2023 under both base and reasonable worst case scenarios taking into considerations its principal risks and uncertainties including a reduction in revenue and EBITDA and a significant devaluation of the various currencies in the countries in which the Group operates including the Nigerian Naira. As part of this evaluation, the Group has considered available ways to mitigate these risks and uncertainties and has also considered committed undrawn facilities of USD 424m expiring beyond the going concern assessment period (total committed undrawn facilities as of the date of authorisation of these consolidated financial statements are USD 587m), which will fulfil the Group's cash flow requirement under both the base and reasonable worst case scenarios.

Having considered all the factors above impacting the Group's businesses, the impact of downside sensitivities, and the mitigating actions available including a reduction and deferral of capital expenditure, the directors are satisfied that the Group has adequate resources to continue its operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the consolidated and company only financial statements.

   4.   Significant transactions/new developments 

a) The directors recommended and shareholders approved a final dividend of 2.5 cents per ordinary share for the year ended 31 March 2021, which was paid on 23 July 2021 to the holders of ordinary shares on the register of members at the close of business on 25 June 2021.

b) The interim dividend of 2 cents per share was approved by the Board on 27 October 2021 and paid on 10 December 2021 to the holders of ordinary shares on the register of members at the close of business on 12 November 2021.

c) On 2 June 2021, the Group signed an agreement to sell 1,445 towers in Tanzania to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation as majority owner and by Paradigm Infrastructure Limited, for a gross consideration of USD 177m. The first close of such sale was completed on 4 January 2022 and a portion of consideration amounting USD 160m was received. The Group has leased back a portion of such tower assets and thus a corresponding portion of the total gain on the sale has been recognized as a deduction in the cost of the Right of Use assets for the assets leased back. The resultant remaining gain (amounting to USD 83m) has been recorded as 'other non-operating income' and presented as an exceptional item (refer to Note 6(1)). The Group has recognised Right of Use assets and Lease Liabilities for the portion of towers leased back by the Group.

Consequent to the completion of this sale, as per the settlement agreement with Government of Tanzania (GOT), shareholder loans payable by Airtel Tanzania (a subsidiary of the Group) to Bharti Airtel Tanzania BV ('BATBV') and Bharti Airtel International (Netherlands) B.V. ('BAIN') (other subsidiaries of the Group) amounting to USD 408m were forgiven after repayment of a part of the shareholder loan amounting USD 107m by Airtel Tanzania to BATBV. A portion of the impact of this waiver pertaining to the non-controlling holders has been allocated to non-controlling interest in the consolidated financial statements.

As per the settlement agreement, Airtel Tanzania also paid a special dividend of USD 18m to its 49% shareholder, Government of Tanzania. The reduction in net assets of Airtel Tanzania (subsidiary) due to this distribution has been allocated to owners of the Company and non-controlling interests in the consolidated financial statements in proportion of their respective shareholdings.

d) In line with the agreement to sell 162 towers in Rwanda, signed by the Group on 22 February 2021 with IHS Rwanda Ltd, during the year ended 31 March 2022, the Group completed the first and second close of the sale of telecommunication tower assets and received a consideration of USD 11m. Since the Group has leased back a portion of such tower assets, a corresponding portion of the total gain on the sale has been recognized as a deduction in the cost of the Right of Use asset for the assets leased back with the remaining gain (amounting to USD 4m) recorded as 'other non-operating income' and presented as an exceptional item (refer to Note 6(1)). The Group has recognised Right of Use assets and Lease Liabilities for the portion of towers leased back by the Group.

e) In line with the agreement to sell, signed by the Group on 23 March 2021 with Helios Towers for gross consideration of USD 52m, during the year ended 31 March 2022, the Group completed the first and second close of the sale of the Group's subsidiary which holds tower assets in Madagascar and received consideration of USD 46m. Since the Group has leased back a portion of such tower assets, a corresponding portion of the total gain on the sale has been recognized as a deduction in the cost of the Right of Use asset for the assets leased back with the remaining gain (amounting to USD 5m) recorded as 'other non-operating income' and presented as an exceptional item (refer to Note 6(1)). The Group has recognised Right of Use assets and Lease Liabilities for the portion of towers leased back by the Group.

The details of the consideration received, assets and liabilities over which control was lost and gain recorded during the year are as follows:

 
                                                           As of 
                                                      --------------- 
A. Consideration received                             2 November 2021 
                                                      --------------- 
Fair value of consideration (first and subsequent 
 closings)                                                  49 
B. Net assets disposed 
Non-current assets 
Property Plant and Equipment                                18 
Others                                                       2 
Current Assets 
Cash and Cash Equivalents                                    2 
Others                                                       1 
                                                      --------------- 
Total Assets                                                23 
                                                      --------------- 
Current Liabilities 
Trade Payables                                               4 
Non-Current Liabilities 
Others                                                       2 
                                                      --------------- 
Total Liabilities                                            6 
                                                      --------------- 
Net Assets                                                  17 
                                                      --------------- 
C. Gain on Disposal(1)                                       5 
D. Net Cash inflow on disposal 
Consideration received in Cash and Cash Equivalents 
 (at first and second close)                                46 
 

(1) Gain on disposal has been computed after adjusting foreign currency translation losses reclassified to the statement of comprehensive income amounting to USD 6m and a gain amounting to USD 21m pertaining to the portion of assets leased back by the Group which has been recognized as a deduction in the right of use asset.

f) In line with the agreement to sell, signed by the Group on 23 March 2021 with Helios Towers for gross consideration of USD 55m, the Group completed the first close of the sale of the Group's subsidiary which holds tower assets in Malawi on 24 March 2022 and received a portion of consideration amounting to USD 34m. Since the Group has leased back a portion of such tower assets, a corresponding portion of the total gain on the sale has been recognized as a deduction in the cost of the Right of Use assets for the assets leased back with the remaining gain (amounting to USD 19m) recorded as 'other non-operating income' and presented as an exceptional item (refer to Note 6(1)). The Group has recognised Right of Use assets and Lease Liabilities for the portion of towers leased back by the Group.

The details of the consideration received, assets and liabilities over which control was lost and gain recorded during the year is as follows:

 
                                                          As of 
                                                      ------------- 
A. Consideration received                             24 March 2022 
                                                      ------------- 
Fair value of consideration received (first and 
 subsequent close)                                         51 
B. Net assets disposed: 
Non-current assets 
Property Plant and Equipment                               31 
Right of use assets                                         3 
Others                                                      2 
 
Current Assets 
Cash and Cash Equivalents                                   2 
Others                                                      2 
                                                      ------------- 
Total Assets                                               40 
                                                      ------------- 
Current Liabilities 
Trade Payables                                              5 
Others                                                      2 
Non-Current Liabilities 
Deferred tax liability                                      2 
Others                                                      3 
                                                      ------------- 
Total Liabilities                                          12 
                                                      ------------- 
Net Assets                                                 28 
                                                      ------------- 
C. Gain on Disposal(1)                                     19 
D. Net Cash inflow on disposal 
Consideration received in Cash and Cash Equivalents        34 
 

(1) Gain on disposal has been computed after adjusting Foreign Currency Translation gains reclassified to the statement of comprehensive income amounting to USD 11m and a gain amounting to USD 15m pertaining to the portion of assets leased back by the Group which has been recognized as a deduction in the right of use asset.

g) In March 2021, the Group had entered into agreements with TPG's The Rise Fund and Mastercard for the sale of non-controlling interests in one of the Group's subsidiaries (AMC BV) by way of secondary sale of AMC BV's shares.

On 02 August 2021, the Group completed the first close of the transaction, whereby The Rise Fund and Mastercard invested USD 150m and USD 75m respectively.

On 30 July 2021, the Group further entered into an agreement with Qatar Holdings LLC for the sale of further non-controlling interests in AMC BV and completed the first close of the transaction on 19 August 2021 receiving USD 150m from Qatar Holdings LLC.

On 16 November 2021, the Group completed the second close of the above transactions whereby The Rise Fund and Qatar Holdings LLC each invested a further USD 50m, and Mastercard a further USD 25m.

On 15 December 2021, the Group further entered into an agreement with Chimetech Holding Limited for the sale of further non-controlling interests in AMC BV and received USD 50m from Chimetech Holding Limited.

While the Group continues to control AMC BV, for all the above-mentioned investments, the Group has recorded a non-controlling interest including shares held within Escrow. These shares may transfer to the investors at the end of a restructuring period as per the terms of the agreements. The Group has concluded that it does not control the shares placed in Escrow and hence has recorded these shares as part of the Group's non-controlling interests.

Under the terms of the transaction, and in very limited circumstances (including in the event that there is no Initial Public Offering of shares in AMC BV within four years of first close), The Rise Fund and Mastercard would have the option, so as to provide liquidity to them, to sell its shares in AMC BV to Airtel Africa or its affiliates at fair market value (determined by a mutually agreed merchant bank using an agreed internationally accepted valuation methodology). The Group has determined that successfully executing the IPO is not within complete control of the Group and has thus recorded a put option liability at the present value of the expected buy-back amount which is also the maximum amount, by debiting 'transactions with NCI reserve'. Subsequent re-measurement of this liability has been recognised as a finance cost.

h) On 1 December 2021, Airtel Nigeria completed the buy-back of 8.22% non-controlling interest (out of existing 8.26%) from its non-controlling shareholders at a total cost of NGN 67.6 billion (approximately USD 163m) including directly attributable transaction costs. The difference between such cost and the carrying value of such non-controlling interest, has been recorded in 'Transaction with NCI reserve' as part of owner's equity.

i) On 7 March 2022, Bharti Airtel International (Netherlands) B.V., a subsidiary of the Group, completed early repayment of its USD 505m, 5.125% Guaranteed Senior Notes, with original maturity due in March 2023 using cash balances available at the Group level. The settlements included all outstanding accrued interest up to the redemption date and an applicable premium. The difference of USD 19m between the carrying value of such bonds and the total consideration paid has been recognized as a finance cost in the statement of comprehensive income and presented as an exceptional item.

j) During the year ended 31 March 2022, Airtel Kenya Networks Limited ('Airtel Kenya'), a subsidiary of the Group, entered into an agreement with the Communications Authority of Kenya regarding its 2015-2025 operating and spectrum licence. Under this agreement, Airtel Kenya agreed to pay a total of USD 20m in four instalments over the next three years. The first instalment of USD 5m has been paid and for the balance amount, a deferred payment liability has been recognized in the consolidated financial statements. This cost has been charged to the statement of comprehensive income and presented as an exceptional item.

   5.   Segmental Information 

The group's segment information is provided on the basis of geographical clusters to the group's chief executive officer i.e. chief operating decision maker (CODM) for the purposes of resource allocation and assessment of performance. The group's reporting segments are as follows:

Nigeria

East Africa - Comprising operations in Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia

Francophone Africa - Comprising operations in Chad, Congo B, DRC, Gabon, Madagascar, Niger and Seychelles

Each segment derives revenue from mobile services, mobile money and other services. Expenses, assets and liabilities primarily related to the corporate headquarters of the Group are presented as Unallocated Items.

The amounts reported to CODM are based on the accounting principles used in the preparation of the financial statements. Each segment's performance is evaluated based on segment revenue and segment result.

The segment result is Underlying EBITDA i.e. earnings before interest, tax, depreciation and amortisation before exceptional items. In March 2021, Underlying EBITDA was also adjusted for charitable donations. This is the measure reported to the CODM for the purpose of resource allocation and assessment of segment performance.

Inter-segment pricing and terms are reviewed and changed by management to reflect changes in market conditions and changes to such terms are reflected in the period in which the change occurs.

The 'Eliminations/Adjustments' column comprises inter-segment revenues eliminated upon consolidation and Group accounting policy alignments.

Segment assets and segment liabilities comprise those assets and liabilities directly managed by each segment. Segment assets primarily include receivables, property, plant and equipment, capital work in progress, right-to-use assets, intangibles assets, inventories and cash and cash equivalents. Segment liabilities primarily include operating liabilities. Segment capital expenditure comprises investment in property, plant and equipment, capital work in progress, intangible assets (excluding licenses) and capital advances.

Investment elimination upon consolidation and resulting goodwill are reflected in the 'elimination /adjustment' column.

Summary of the segmental information and disaggregation of revenue for the year ended and as of 31 March 2022 is as follows:

 
 
                                    Nigeria   East Africa   Francophone Africa   Unallocated   Eliminations   Total 
                                   --------  ------------  -------------------  ------------  -------------  ------- 
 
 Revenue from external customers 
   Voice revenue                        984           782                  592             -              -    2,358 
   Data revenue                         734           457                  334             -              -    1,525 
   Mobile money revenue(1)                0           326                   98             -              -      424 
   Other revenue(2)                     157           146                  104             -              -      407 
 
                                      1,875         1,711                1,128             -              -    4,714 
 Inter-segment revenue                    3             6                    3             -           (12)        - 
 Total revenue                        1,878         1,717                1,131             -           (12)    4,714 
 Segment results: Underlying 
  EBITDA                              1,037           848                  464          (38)            (0)    2,311 
 
 Less: 
 Depreciation and amortisation          268           240                  203            33              0      744 
 Finance costs                                                                                                   441 
 Finance income                                                                                                 (19) 
 Other non-operating Income, 
  (net)                                                                                                        (111) 
 Share of profit of associate                                                                                    (0) 
 Exceptional items pertaining to 
  operating profit                        -            32                    -                            -       32 
 Profit before tax                                                                                             1,224 
 
 Other segment items 
 Capital expenditure                    251           271                  125             9              -      656 
---------------------------------  --------  ------------  -------------------  ------------  -------------  ------- 
 
 As of 31 March 2022 
 Segment assets                       2,254         2,394                1,720        27,422       (23,426)   10,364 
 Segment liabilities                  1,437         2,869                2,495        14,491       (14,577)    6,715 
 Investment in associate 
  (included in segment assets 
  above)                                  -             -                    6             -              -        6 
 

(1) intra-segment elimination of USD 129m adjusted with Mobile money revenue. It includes USD 85m pertaining to East Africa and balance USD 44m pertaining to Francophone Africa.

(2) it includes messaging, value added services, enterprise, site sharing and handset sale revenue.

Summary of the segmental information and disaggregation of revenue for the year ended and as of 31 March 2021 is as follows:

 
 
                                    Nigeria   East Africa   Francophone Africa   Unallocated   Eliminations   Total 
                                   --------  ------------  -------------------  ------------  -------------  ------- 
 
 Revenue from external customers 
   Voice revenue                        896           649                  558             0              -    2,103 
   Data revenue                         549           354                  254             -              -    1,157 
   Mobile money revenue (1)               0           227                   74             -              -      301 
   Other revenue (2)                    104           147                   96             -              -      347 
 
                                      1,549         1,377                  982             0              -    3,908 
 Inter-segment revenue                    3             4                    3             -           (10)        - 
 Total revenue                        1,552         1,381                  985             0           (10)    3,908 
 Segment results: Underlying 
  EBITDA                                839           631                  364          (42)              -    1,792 
 
 Less: 
 Depreciation and amortisation          236           221                  207            17              -      681 
 Finance costs                                                                                                   432 
 Finance income                                                                                                  (9) 
 Share of profit of associate                                                                                    (1) 
 Charitable donation                      1             2                    1             2              -        6 
 Exceptional items pertaining to 
  operating profit                        -             -                 (14)             -              -     (14) 
 Profit before tax                                                                                               697 
 
 Other segment items 
 Capital expenditure                    275           249                   88             2              -      614 
---------------------------------  --------  ------------  -------------------  ------------  -------------  ------- 
 
 As of 31 March 2021 
 
 Segment assets                       1,889         2,042                1,791        29,207       (24,937)    9,992 
 Segment liabilities                  1,192         2,989                2,715        16,907       (17,164)    6,639 
 Investment in associate 
  (included in segment assets 
  above)                                  -             -                    4             -              -        4 
 

(1) intra-segment elimination of USD 100m adjusted with mobile money revenue. It includes USD 64m pertaining to East Africa and balance USD 36m pertaining to Francophone Africa.

(2) it includes messaging, value added services, enterprise, site sharing and handset sale revenue.

Geographical information disclosure on non-current assets (PPE, CWIP, ROU, Intangible assets including goodwill and intangible assets under development):

 
                                                 As of 
                                    ------------------------------ 
                                     31 March 2022   31 March 2021 
                                    --------------  -------------- 
 United Kingdom                                  1               1 
 Nigeria                                     1,670           1,455 
 Netherlands (including goodwill)            3,773           3,805 
 Others                                      2,529           2,341 
 Total                                       7,973           7,602 
                                    ==============  ============== 
 

Additional product related information:

Currently, based on the information provided to the CODM for the purposes of resource allocation and assessment of performance, Group's segments are geographical clusters in which the Group operates. The Group also presents additional product-wise information to investors on a regular basis, however products do not currently meet the requirements of being operating segments for the Group. Given the increasing focus of the Group on mobile money services, the Directors have decided to provide additional disclosure on a product basis within this operating segment note, consistent with the information provided within the strategic report. The Group will continue re-assess its definition and presentation of operating segments, particularly in respect of mobile money as the size and importance to the Group grows.

 
                                                     For the year ended 
                      -------------------------------------------------------------------------------- 
                                   31 March 2022                            31 March 2021 
                      ---------------------------------------  --------------------------------------- 
                       Mobile    Mobile  Eliminations/          Mobile    Mobile  Eliminations/ 
                       Services   Money    Adjustment   Total   Services   Money    Adjustment   Total 
Revenue                   4,294     553          (133)  4,714      3,612     401          (105)  3,908 
Underlying EBITDA         2,077     270           (36)  2,311      1,639     195           (42)  1,792 
Depreciation and 
 amortization               697      14             33    744        654      10             17    681 
Capital Expenditure         621      25             10    656        580      32              2    614 
 
   6.    Exceptional items 

Underlying profit before tax excludes the following exceptional items:

 
                                                               For the year ended 
                                                         ------------------------------ 
                                                          31 March 2022   31 March 2021 
                                                         --------------  -------------- 
 Profit before tax                                                1,224             697 
 
 Add: Exceptional items 
 - Gain on sale of tower assets (1)                               (111)               - 
 - Spectrum fee agreement cost (2)                                   20               - 
 - Bond prepayment cost (3)                                          19               - 
 - Provision for settlement of contractual dispute (4)               12               - 
 - Service revenues (5)                                               -            (20) 
 - Employee restructuring cost (6)                                    -               6 
                                                                   (60)            (14) 
                                                         --------------  -------------- 
 Underlying profit before tax                                     1,164             683 
                                                         --------------  -------------- 
 

(1) Represents the gain on the sale of telecommunication tower assets in the Group's subsidiaries in Tanzania, Rwanda, Madagascar, and Malawi, ( refer to Note 4(c) to 4(f)), as part of the Group's strategic asset monetisation programme recognised in other non-operating income.

(2) Represents cost of agreeing historical spectrum fees in one of the Group's subsidiaries (refer to Note 4(j)) recognised in license fees and spectrum usage charges.

(3) Comprises cost of prepaying USD 505m bonds with original maturity of March 2023 (refer to Note 4(i)) recognised in finance costs.

(4) Represents provision for expected settlement of a contractual dispute in which one of the Group's subsidiaries is a party recognised in other operating expenses.

(5) Represents recognition of revenue pertaining to earlier years on a cumulative catch-up basis, arising out of a settlement agreement entered with a customer in one of the Group's subsidiaries in Niger.

(6) Comprises the cost of employee restructuring completed during the year ended 31 March 2021 in one of the Group's subsidiaries, including settlement of severance pay defined benefit plans recognised in employee benefit expenses.

Underlying profit after tax excludes the following exceptional items:

 
                                              For the year ended 
                                        ------------------------------ 
                                         31 March 2022   31 March 2021 
                                        --------------  -------------- 
 Profit after tax                                  755             415 
 -Exceptional items (as above)                    (60)            (14) 
 - Tax on above exceptional items                  (2)               - 
 - Deferred tax asset recognition (1)                -            (36) 
                                                  (62)            (50) 
                                        --------------  -------------- 
 Underlying profit after tax                       693             365 
                                        ==============  ============== 
 

(1) During the year ended 31 March 2021, the Group recognised deferred tax assets in Airtel Tanzania. Airtel Tanzania had carried forward losses and temporary differences on which deferred tax was not recognised in the past. Considering that Airtel Tanzania has been in continuous and cumulative profits and on the basis of likely timing and the level of future taxable profits, the Group has determined that it is now probable that taxable profits will be available against which the tax losses and temporary differences can be utilised in the foreseeable future. Consequently, the deferred tax asset recognition criteria are met, leading to recognition of USD 36m during the year ended 31 March 2021.

Profit attributable to non-controlling interests include benefit of USD 33m and USD 19m during the year ended 31 March 2022 and 2021 respectively, relating to the above exceptional items.

   7.    Income tax 

The tax expense is as follows:

 
                            For the year ended 
                      ------------------------------ 
                       31 March 2022   31 March 2021 
                      --------------  -------------- 
 
 Current tax                     347             242 
 Deferred tax                    122              40 
                      --------------  -------------- 
 Income Tax expense              469             282 
                      --------------  -------------- 
 
   8.     Earnings per share ('EPS') 

For the year ended

 
                                                                       31 March 2022              31 March 2021 
                                                                      --------------  ------------------------- 
 
 Profit for the year attributable to owners of the Company                       631                        339 
 Weighted average ordinary shares outstanding for basic EPS            3,754,179,962              3,757,550,081 
 
 Basic EPS                                                                     16.8c                       9.0c 
                                                                      --------------  ------------------------- 
 
 
   The details used in the computation of diluted EPS: 
                                                                                   For the year ended 
                                                                      ----------------------------------------- 
                                                                       31 March 2022              31 March 2021 
                                                                      --------------  ------------------------- 
 
 Profit for the year attributable to owners of the Company                       631                        339 
 Weighted average ordinary shares outstanding for diluted EPS(1)(2)    3,760,109,303              3,759,122,452 
 
 Diluted EPS                                                                   16.8c                       9.0c 
                                                                      --------------  ------------------------- 
 
       (1) The difference between the basic and diluted number of shares at the end of March 2022 
       being 5,929,341 (March 2021: 1,572,371) relates to awards committed but not yet issued under 
       the Group's share-based payment schemes. 
       (2) Deferred shares have not been considered for EPS computation as they do not have right 
       to participate in profits. 
 
   9.    Property, plant and equipment ('PPE') 

The following table presents the reconciliation of changes in the carrying value of PPE for the year ended 31 March 2022 and 31 March 2021:

 
                                            Leasehold     Building    Land    Plant and    Furniture    Vehicles     Office     Computer    Total     Capital work 
                                           Improvements                       Equipment    & Fixture                Equipment                         in progress 
                                                                                 (2)                                                                      (3) 
                                         --------------  ---------  ------  -----------  -----------  ----------  -----------  ---------  -------  ---------------- 
  Gross carrying value 
  Balance as of 1 April 2020                         50         47      26        2,408           25          24           37        661    3,278               259 
  Additions / capitalization                          1          1       0          648           14           0            9         26      699               611 
  Disposals / adjustments (1)                       (1)        (0)     (0)         (32)          (1)         (0)          (0)        (0)     (34)             (696) 
   Transferred to assets held for sale                -          -       -         (77)            -           0            -        (0)     (77)               (0) 
  Foreign currency translation impact                 0        (2)       1         (89)          (1)           0          (1)       (11)    (103)               (8) 
  Balance as of 31 March 2021                        50         46      27        2,858           37          24           45        676    3,763               166 
 
  Additions / capitalization                          1          0       2          543           28           0           14         38      626               653 
  Disposals / adjustments (1)                       (0)        (0)     (2)        (285)          (2)         (2)          (4)        (1)    (296)             (627) 
  Foreign currency translation impact               (2)          1     (1)         (71)          (1)         (0)            0       (10)     (84)               (3) 
  Balance as of 31 March 2022                        49         47      26        3,045           62          22           55        703    4,009               189 
 
  Accumulated Depreciation 
  Balance as of 1 April 2020                         42         15       1          722            9          22           19        616    1,446                 - 
 
  Charge                                              2          3       0          341            6           1            9         27      389                 - 
  Disposals / adjustments (1)                       (0)        (0)       0         (28)          (0)         (1)          (0)          1     (28)                 - 
   Transferred to assets held for sale                -          -       -         (58)            -         (0)            -        (0)     (58) 
  Foreign currency translation impact                 0        (1)     (0)         (41)          (0)           0          (1)        (9)     (52)                 - 
  Balance as of 31 March 2021                        44         17       1          936           15          22           27        635    1,697                 - 
 
  Charge                                              1          3       0          364           10           0            9         31      418                 - 
  Disposals / adjustments (1)                         0        (0)     (1)        (241)          (2)         (2)          (3)        (3)    (252)                 - 
  Foreign currency translation impact               (1)          0     (0)         (56)          (0)         (0)          (1)       (10)     (68)                 - 
  Balance as of 31 March 2022                        44         20       0        1,003           23          20           32        653    1,795                 - 
 
  Net carrying value 
  As of 1 April 2020                                  8         32      25        1,686           16           2           18         45    1,832               259 
  As at 31 March 2021                                 6         29      26        1,922           22           2           18         41    2,066               166 
  As at 31 March 2022                                 5         27      26        2,042           39           2           23         50    2,214               189 
 
 

(1) Related to the reversal of gross carrying value and accumulated depreciation on retirement of PPE and reclassification from one category of asset to another.

(2) Includes PPE pledged against the Group's Borrowings outstanding of USD 50m as at 31 March 2022 and 31 March 2021.

(3) The carrying value of capital work-in-progress as at 31 March 2022 and 2021 mainly pertains to plant and equipment.

10. Goodwill

The following table presents the reconciliation of changes in the carrying value of Goodwill for the year ended 31 March 2022 and 31 March 2021:

 
                                      Goodwill 
                                      -------- 
Balance as of 1 April 2020               3,943 
Foreign currency translation impact      (108) 
                                      -------- 
Balance as of 31 March 2021              3,835 
 
Balance as of 1 April 2021               3,835 
Foreign currency translation impact        (8) 
                                      -------- 
Balance as of 31 March 2022              3,827 
                                      -------- 
 

11. Impairment review

The carrying amount of goodwill is attributed to the following groups of CGUs:

 
                                     As of 
                        ------------------------------ 
                         31 March 2022   31 March 2021 
                        --------------  -------------- 
 Nigeria                         1,275           1,298 
 East Africa                     1,835           1,821 
 Francophone Africa                717             716 
                                 3,827           3,835 
                        ==============  ============== 
 

The Group tests goodwill for impairment annually on 31 December. The carrying amount of goodwill as of 31 December 2021 was USD 1,277m, USD 1,861m and USD 719m for Nigeria, East Africa and Francophone Africa respectively. The recoverable amounts of the above group of CGUs are based on value-in-use, which are determined based on ten-year business plans that have been approved by the Board.

Whilst the Board performed a long-term viability assessment over a three-year period, for the purpose of assessing liquidity, the Group has adopted a ten-year plan for the purpose of impairment testing due to the following reasons;

-- The Group operates in emerging markets where the telecommunications market is underpenetrated compared to developed markets. In these emerging markets, short-term plans (for example, five years) are not indicative of the long-term future prospects and performance of the Group.

-- The life of the Group's regulatory licences and network assets are at an average of ten years, and

-- The potential opportunities of the emerging African telecom sector, which is mostly a two-three player market with lower smartphone penetration.

Accordingly, the Board approved that this planning horizon reflects the assumptions for medium to long-term market developments, appropriately covers market dynamics of emerging markets and better reflects the expected performance in the markets in which the Group operates.

While using the ten-year plan, the Group also considers external market data to support the assumptions used in such plans, which is generally available only for the first five years. Considering the degree of availability of external market data beyond year five, the Group has performed sensitivity analysis to assess the impact on impairment of using a five-year plan. The results of this sensitivity analysis demonstrate that the initial five-year plan with appropriate changes including long-term growth rates applied at the end of this period does not result in any impairment and does not impact the headroom by more than 5% in any of the group of CGUs as compared to the headroom using the ten-year plan. Further, the Group is confident that projections for years six to ten are reliable and can demonstrate its ability, based on past experience, to forecast cash flows accurately over a longer period. Accordingly, the Board has approved and the Group continues to follow a consistent policy of using an initial forecast period of ten years for the purpose of impairment testing.

In assessing the Group's prospects, the Directors considered 5G cellular network potential in the markets which the Group operates. The Group's first endeavour is to secure spectrum for 5G launch and roll out 5G network in key markets. Given the relatively low 4G customer penetration in the countries where it operates, the Group will continue to focus on its strategy to expand its data services and increase data customer penetration by leveraging and expanding its leading 4G network.

During the year, the Central Bank of Nigeria gave Airtel Africa's subsidiary Smartcash Payment Service Bank Limited (Smartcash) approval in principle to operate a payment service bank (PSB) business in Nigeria. The PSB licence allows Smartcash to accept deposits from individuals and small businesses, carry out payment and remittance services within Nigeria, and issue debit and prepaid cards among other activities set out by the Central Bank of Nigeria (CBN). As of the date of impairment testing, the Group had in-principle approval of such licence in hand. Subsequent to the year end, in April 2022, the Group has received the final approval from the Central Bank of Nigeria for a full PSB licence affording the Group the opportunity to deliver a full suite of mobile money services in Nigeria.

Management is in early stages of considering the impact of climate change. Based on the analysis conducted so far, the Group is satisfied that the impact of climate change does not lead to an impairment as at 31 December 2021 and is adequately covered as part of the sensitivities disclosed below.

The cash flows beyond the planning period are extrapolated using appropriate long-term terminal growth rates. The long-term terminal growth rates used do not exceed the long-term average growth rates of the respective industry and country in which the entity operates and are consistent with internal/external sources of information.

The inputs used in performing the impairment assessment at 31 December 2021 were as follows:

 
 Assumptions                   Nigeria   East Africa   Francophone Africa 
---------------------------  ---------  ------------  ------------------- 
 Pre tax Discount Rate          24.35%        16.17%               15.43% 
 Capital expenditure (as % 
  of Revenue)                 8% - 15%      7% - 15%             7% - 12% 
 Long term growth rate           2.65%         5.31%                5.46% 
 

At 31 December 2021, the impairment testing did not result in any impairment in the carrying amount of goodwill in any group of CGUs.

The key assumptions in performing the impairment assessment were as follows:

 
 Assumptions            Basis of assumptions 
---------------------  ----------------------------------------------------------------------------------------------- 
 Discount rate          Discount rate reflects the market assessment of the risks specific to the group of CGUs and 
                         estimated based on the weighted average cost of capital for each respective group of CGUs. 
=====================  =============================================================================================== 
 Capital expenditures   The cash flow forecasts of capital expenditure are based on experience after considering the 
                         capital expenditure required to meet coverage and capacity requirements relating to voice, 
                         data and mobile money services. 
=====================  =============================================================================================== 
 Growth rates           The growth rates used are in line with the long-term average growth rates of the respective 
                        industry and country in which the entity operates and are consistent with the internal / 
                        external 
                        sources of information. 
=====================  =============================================================================================== 
 

At 31 December 2021, the impairment testing did not result in any impairment in the carrying amount of goodwill in any group of CGUs. The results of the impairment tests using these rates show that the recoverable amount exceeds the carrying amount by USD 5,579m for East Africa (173%) and USD 2,559m for Francophone Africa (160%). For Nigeria, the recoverable amount exceeds the carrying amount by USD 2,842m (104%) including the cash flows of PSB licence which was received subsequent to the impairment testing date. Excluding such cash-flows did not result in any impairment in Nigeria. The Group therefore concluded that no impairment was required to the Goodwill held against each group of CGUs.

   --      Sensitivity in discount rate and capital expenditure 

Management believes that no reasonably possible change in any of the key assumptions would cause the difference between the carrying value and recoverable amount for any cash-generating unit to be materially different from the recoverable value in the base case. The table below sets out the breakeven pre-tax discount rate for each group of CGUs, which will result in the recoverable amount being equal with the carrying amount for each group of CGU's:

 
                                              Francophone 
                        Nigeria  East Africa     Africa 
----------------------  -------  -----------  ----------- 
Pre tax Discount Rate   43.70%     34.34%       32.63% 
 

The table below presents the increase in isolation in capital expenditure as a percentage of revenue (across all years of the impairment review) which will result in equating the recoverable amount with the carrying amount for each group of CGUs:

 
 Assumptions            Nigeria   East Africa   Francophone Africa 
---------------------  --------  ------------  ------------------- 
 Capital expenditure     9.64%      13.99%            11.06% 
 

No reasonably possible change in the terminal growth rate would cause the carrying amount to exceed the recoverable amount.

12. Cash and bank balances

 
 Cash and cash equivalents                              As of 
                                                -------------------- 
                                                 31 March   31 March 
                                                     2022       2021 
                                                ---------  --------- 
       Balances with banks 
       - On current accounts                          267        486 
       - Bank deposits with original maturity 
        of three months or less                       281        290 
       Cheques on hand                                  -          0 
       Balance held in wallets                         89         36 
       Cash on hand                                     1          1 
                                                ---------  --------- 
                                                      638        813 
                                                ---------  --------- 
 

Other bank balances

 
                                                                          As of 
                                                             ------------------------------ 
                                                              31 March 2022   31 March 2021 
                                                             --------------  -------------- 
      -Term deposits with banks with original maturity of               220             257 
       More than three months but less than 12 months 
      -Margin money deposits (1)                                        158              25 
      -Unpaid dividend                                                    0               0 
                                                                        378             282 
                                                             ==============  ============== 
 

(1) Margin money deposits represent amount given as collateral for legal cases and/or bank guarantees for disputed matters, deposit against derivative contracts and deposits given against borrowings in one of the Group's subsidiaries.

For the purpose of the statement of cash flows, cash and cash equivalents are as follows:

 
                                                                             As of 
                                                                ------------------------------ 
                                                                 31 March 2022   31 March 2021 
                                                                --------------  -------------- 
       Cash and cash equivalents as per balance sheet                      638             813 
       Balance held under mobile money trust                               513             440 
       Bank overdraft                                                    (304)           (251) 
       Cash and cash equivalents classified as held for sale                 -               1 
                                                                           847           1,003 
                                                                ==============  ============== 
 

13. Borrowings

Non-current

 
                                                         As of 
                                 --------------------------------------------------- 
                                  31 March 2022                        31 March 2021 
                                 --------------  ----------------------------------- 
 Secured 
    Term loans                               50                                   50 
    Less: Current portion (A)              (50)                                 (50) 
                                 --------------  ----------------------------------- 
                                              -                                    - 
 Unsecured 
    Term loans                              655                                  544 
    Non- convertible bonds                1,015                                2,403 
                                 --------------  ----------------------------------- 
                                          1,670                                2,947 
    Less: Current portion (B)             (184)                              (1,076) 
                                 --------------  ----------------------------------- 
                                          1,486                                1,871 
 
                                          1,486                                1,871 
                                 --------------  ----------------------------------- 
 
 

C urrent

 
                                                                   As of 
                                                       31 March 2022   31 March 2021 
                                                      --------------  -------------- 
 Unsecured 
    Term loans(1)                                                248              92 
    Bank overdraft                                               304             250 
                                                      --------------  -------------- 
                                                                 552             342 
  Current maturities of long-term borrowings (A+B)               234           1,126 
                                                      --------------  -------------- 
                                                                 786           1,468 
                                                      --------------  -------------- 
 

(1) Term loans as at 31 March 2022, include borrowings against which certain deposits (included in other bank balances in statement of financial position) have been placed.

14. Share capital

 
                                                                                         As of 
                                                                   ------------------------------------------------- 
                                                                    31 March 2022                      31 March 2021 
                                                                   --------------  --------------------------------- 
 Authorised shares 
 3,758,151,504 Ordinary shares of USD 0.5 each 
  (March 2021: 3,758,151,504)                                               1,879                              1,879 
 3,081,744,577 Deferred shares of USD 0.5 each 
  (March 2021:3,081,744,577)                                                1,541                            1,541 
 
                                                                            3,420                              3,420 
                                                                   ==============  ================================= 
 Issued, Subscribed and fully paid-up shares 
 3,758,151,504 Ordinary shares of USD 0.5 each (March 2021: 
  3,758,151,504)                                                            1,879                              1,879 
 3,081,744,577 Deferred shares of USD 0.5 each 
  (March 2021: 3,081,744,577)                                               1,541                            1,541 
 
                                                                            3,420                              3,420 
                                                                   ==============  ================================= 
 
 

Terms/rights attached to equity shares

The company has the following two classes of ordinary shares:

-- Ordinary shares having par value of USD 0.5 per share. Each holder of equity shares is entitled to cast one vote per share and carries a right to dividends.

-- Deferred shares of USD 0.5 each. These deferred shares are not listed and are intended to be cancelled in due course. No share certificates are to be issued in respect of the deferred shares. These are not freely transferable and would not affect the net assets of the Company. The deferred shareholders shall have no right to receive any dividend or other distribution or return whether of capital or income. On a return of capital in a liquidation, the deferred shareholders shall have the right to receive the nominal amount of each deferred share held, but only after the holder of each 'Other' share (i.e. shares other than the deferred shares) in the capital of the Company shall have received the amount paid up on each such Other share held and the payment in cash or in specie of GBP100,000 (or its equivalent in any other currency) on each such Other shares held. The Company shall have an irrevocable authority from each holder of the deferred shares at any time to purchase all or any of the deferred shares without obtaining the consent of the deferred shareholders in consideration of the payment of an amount not exceeding one US cent in respect of all the deferred shares then being purchased.

15. Contingent liabilities and commitments

 
 Contingent liabilities                                                                      As of 
                                                                                ------------------------------ 
                                                                                 31 March 2022   31 March 2021 
                                                                                --------------  -------------- 
 (a) Taxes, Duties and Other demands (under adjudication / appeal / dispute) 
 -Income tax                                                                                18              23 
 - Value added tax                                                                          30              30 
 -Customs duty & Excise duty                                                                 9               8 
 -Other miscellaneous demands                                                                6               9 
 ( b) Claims under legal and regulatory cases including 
  arbitration matters (1) (2)                                                               82              87 
                                                                                --------------  -------------- 
                                                                                           145             157 
                                                                                ==============  ============== 
 

There are uncertainties in the legal, regulatory and tax environments in the countries in which the Group operates and there is a risk of demands, which may be raised based on current or past business operations. Such demands have in the past been challenged and contested on merits with the relevant authorities and appropriate settlements agreed. Other than amounts provided where the Group believes there is a probable settlement and contingent liabilities where the Group has assessed the additional possible amounts, there are no other legal, tax or regulatory obligations which may be expected to be material to the financial statements.

The movement in contingent liabilities during the year ended 31 March 2022 of USD 12m primarily comprise a reduction on account of settlement of an Income tax assessment amounting to approximately USD3m, closure of other miscellaneous demand amounting to approximately USD3m and rest of the cases are individually immaterial.

(1) One of the subsidiaries of the group is involved in a dispute with one of its vendors, with respect to invoices for services provided to a subsidiary under a service contract. The original order under the contract was issued by the subsidiary for a total amount of Central African franc (CFA) 473,800,000 (approximately UDS 0.8m). In 2014, the vendor-initiated arbitration proceedings claiming a sum of approximately CFA 1.9 billion (approximately UDS 3.2m). In mid-May 2019, lower courts imposed a penalty of CFA 35 billion (approximately UDS 60m), based on which certain banks of the subsidiary were summoned to release the funds. The subsidiary immediately lodged an appeal in the Supreme Court for a stay of execution which was granted. Subsequently, the vendor filed an appeal before the Common Court of Justice and Arbitration (CCJA). Quite unexpectedly, in April 2020, the CCJA lifted the Supreme Court stay of execution. In May 2021, the Commercial Division of the High Court maintained new seizures carried out by the Vendor. The subsidiary appealed and the Court of Appeal determination on the seizures is pending as of April 2022. In March 2022 the CCJA interpreted its judgment of March 2019 to indicate that the daily penalty could not be maintained after its ruling dated 18 November 2018.

Separately, in December 2020 the subsidiary initiated criminal proceedings against the vendor for fraud and deceitful conduct. In February 2021, the investigating judge issued an order to cease the investigation which was appealed by the Subsidiary. In March 2022 the Court Appeal quashed the investigative judge order and allowed the investigation into the Vendor to resume. Testimony in the criminal investigation case happened on 26 April 2022 in front of the criminal court of appeal where the honourable judge has further re-examined the facts from the representatives of subsidiary against this case. The court will provide further update on the upcoming proceedings in due course.

(2) One of the subsidiaries of the Group is involved in a dispute with one of its distributors, with respect to alleged unpaid commissions, bonuses and benefits, totalling approximately USD 12m, over a period of around 11 years of its business relationship with the subsidiary. In March 2012, the distributor filed a claim against the subsidiary in the High Court. On 4 October 2016, the High Court ruled against the subsidiary and ordered to pay the claimed amount of approximately USD 12m to the distributor. On 5 October 2016, the subsidiary filed an appeal in the Court of Appeal against the order of the High Court, which on 24 July 2020 was ruled against the subsidiary. On 7 August 2020, the subsidiary filed an appeal against the decision of the Court of Appeal, in the Supreme Court. Record of appeal has been transmitted to the Supreme Court and briefs of argument are currently being prepared.

Despite the strength of the subsidiary's line of defence, as both the High Court and Court of Appeal have ruled against the subsidiary, it is appropriate to disclose this matter as contingent liability for USD 12m, pending the decision of the Supreme Court. No provision has been made against the said claim.

In addition to the individual matters disclosed above, in the ordinary course of business, the Group is a defendant or co-defendant in various litigations and claims which are immaterial individually.

Guarantees:

Guarantees outstanding as of 31 March 2022 and 31 March 2021 amounting to USD 8m and USD 12m respectively have been issued by banks and financial institutions on behalf of the Group. These guarantees include certain financial bank guarantees which have been given for sub judice matters, the amounts with respect to these have been disclosed under capital commitments, contingencies and liabilities, as applicable.

(ii) Commitments

Capital Commitments

The Group has contractual commitments towards capital expenditure (net of related advances paid) of

USD 295m and USD 232m as of 31 March 2022 and 31 March 2021 respectively.

16. Related Party disclosure

List of related parties

   i)      Parent company 

Airtel Africa Mauritius Limited

   ii)     Intermediate parent entity 

Network i2i Limited

Bharti Airtel Limited

Bharti Telecom Limited

   iii)    Ultimate controlling entity 

Bharti Enterprises (Holding) Private Limited. It is held by private trusts of Bharti family, with Mr. Sunil Bharti Mittal's family trust effectively controlling the company.

   iv)    Associate: 

Seychelles Cable Systems Company Limited

   v)     Other entities with whom transactions have taken place during the reporting period 
   a.     Fellow subsidiaries 

Nxtra Data Limited

Bharti Airtel (Services) Limited

Bharti International (Singapore) Pte Ltd

Bharti Airtel (UK) Limited

Bharti Airtel (France) SAS

Bharti Airtel Lanka (Private) Limited

Bharti Hexacom Limited

   b.    Other related parties 

Airtel Ghana Limited (till 12 October 2021)

Singapore Telecommunication Limited

   vi)    Key Management Personnel ('KMP') 
   a.     Executive director 

Olusegun Ogunsanya (since October 2021)

Raghunath Venkateswarlu Mandava (till September 2021)

Jaideep Paul (since June 2021)

   b.    Non-Executive directors 

Sunil Bharti Mittal

Awuneba Ajumogobia

Douglas Baillie

John Danilovich

Andrew Green

Akhil Gupta

Shravin Bharti Mittal

Annika Poutiainen

Ravi Rajagopal

Arthur Lang (till October 2020)

Kelly Bayer Rosmarin (since October 2020)

Tsega Gebreyes (since October 2021)

   c.   Others 

Olusegun Ogunsanya (till September 2021)

Jaideep Paul (till May 2021)

Ian Ferrao

Michael Foley

Razvan Ungureanu

Luc Serviant

Daddy Mukadi

Neelesh Singh

Ramakrishna Lella

Olivier Pognon (till 15 October 2021)

Edgard Maidou (since 16 October 2021)

Rogany Ramiah

Stephen Nthenge

Vimal Kumar Ambat (since February 2021)

Ashish Malhotra (since October 2020)

Vinny Puri (since March 2021)

C Surendran (since August 2021)

Olubayo Adekanmbi (since December 2021)

In the ordinary course of business, there are certain transactions among the group entities and all these transactions are on arm's length basis. However, the intra-group transactions and balances, and the income and expenses arising from such transactions, are eliminated on consolidation. The transactions with remaining related parties for the years ended 31 March 2022 and 2021 respectively, are described below:

The summary of transactions with the above-mentioned parties is as follows:

 
                                                                     For the year ended 
                ---------------------------------------------------------------------------------------------------------------------------- 
                                        31 March 2022                                                  31 March 2021 
                ------------------------------------------------------------- 
 Relationship    Parent    Intermediate      Fellow      Associates    Other    Parent    Intermediate      Fellow      Associates    Other 
                 company      parent      subsidiaries                related   company      parent      subsidiaries                related 
                              entity                                  parties                entity                                  parties 
                --------  -------------  -------------  -----------            --------  -------------  -------------  -----------  -------- 
 Sale / 
  rendering of 
  services          -           13             59            -           0         -            6             66             -          1 
 Purchase / 
  receiving of 
  services          -           19             54            0           0         -           17             52             1          0 
 Rent and 
  other 
  charges           -           1              -             -           -         -            1              -             -          - 
 Guarantee and 
  collateral 
  fee paid          -           6              -             -           -         -           10              -             -          - 
 Purchase of 
  assets            -           -              2             -           -         -            0              0             -          - 
 Dividend Paid     95           -              -             -           -         95           -              -             -          - 
 
 

The outstanding balance of the above mentioned related parties are as follows:

 
 Relationship               Parent company    Intermediate          Fellow   Joint venture   Associate   Other related 
                                             parent entity    subsidiaries                                     parties 
                          ----------------  --------------  --------------  --------------  ----------  -------------- 
 As of 31 March 2022 
 Trade payables                          -              10              33               -           0               - 
 Trade receivables                       -               5              36               -           -               - 
 Corporate guarantee fee                 -               3               -               -           -               - 
 payable 
 Guarantees and                          -           2,000               -               -           -               - 
 collaterals taken 
 (including performance 
 guarantees) 
 Reimbursement asset                     -              25               -               -           -               - 
 
 As of 31 March 2021 
 
 Trade payables                          -               9              29               -           1               2 
 Trade receivables                       -               3              37               -           -               3 
 Corporate guarantee fee                 -               2               -               -           -               - 
  payable 
 Guarantees and                          -           7,056               -               -           -               - 
  collaterals taken 
  (including performance 
  guarantees) 
 

Key management compensation

KMP are those persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or indirectly, including any director, whether executive or otherwise. For the group, these include executive committee members. Remuneration to key management personnel were as follows:

 
                                      For the year ended 
                                ------------------------------ 
                                 31 March 2022   31 March 2021 
                                --------------  -------------- 
 Short-term employee benefits               10               8 
 Performance linked incentive                3               3 
 Share-based payment                         2               1 
 Other long term benefits                    2               4 
 Other benefits                              1               1 
                                            18              17 
                                ==============  ============== 
 

17. Fair Value of financial assets and liabilities

The category wise details as to the carrying value, fair value and the level of fair value measurement hierarchy of the group's financial instruments are as follows:

 
                                            Carrying value as of                       Fair value as of 
                                       ------------------------------  ----------------------------------------------- 
                                        31 March 2022   31 March 2021   31 March 2022                    31 March 2021 
                                       --------------  --------------  --------------  ------------------------------- 
 Financial assets 
 
 FVTPL 
 Derivatives 
 - Forward and option 
  contracts                  Level 2                2              12               2                               12 
 - Currency swaps and 
  interest rate swaps        Level 2                3               0               3                                0 
 - Cross currency swaps      Level 3                1               1               1                                1 
 Other bank balances         Level 2               16               -              16                                - 
 Investments                 Level 2                0               0               0                                0 
 
 Amortised cost 
 Trade receivables                                123             113             123                              113 
 Cash and cash equivalents                        638             813             638                              813 
 Other bank balances                              362             282             362                              282 
 Balance held under mobile money 
  trust                                           513             440             513                              440 
 Other financial assets                           131              83             131                               83 
 
                                                1,789           1,744            1789                            1,744 
                                       ==============  ==============  ==============  =============================== 
 
 Financial liabilities 
 FVTPL 
 Derivatives 
 - Forward and option 
  contracts                  Level 2                4               6               4                                6 
 - Currency swaps and 
  interest rate swaps        Level 2                0               2               0                                2 
 - Cross currency swaps      Level 3                4               3               4                                3 
 - Embedded derivatives      Level 2                1               1               1                                1 
 
 Amortised cost 
 Borrowings - fixed rate     Level 1            1,015           2,403           1,016                            2,479 
 Borrowings - fixed rate     Level 2              267             100             264                               98 
 Put option liability        Level 3              579               -             579                                - 
  Borrowings                                      990             836             990                              836 
 Trade payables                                   404             366             404                              366 
 Mobile money wallet balance                      496             432             496                              432 
 Other financial liabilities                      516             539             516                              539 
                                                4,276           4,688           4,274                            4,762 
                                       ==============  ==============  ==============  =============================== 
 

The following methods/assumptions were used to estimate the fair values:

-- The carrying value of bank deposits, trade receivables, trade payables, short-term borrowings, other current financial assets and liabilities approximate their fair value mainly due to the short-term maturities of these instruments.

-- Fair value of quoted financial instruments is based on quoted market price at the reporting date.

-- The fair value of non-current financial assets, long-term borrowings and other financial liabilities is estimated by discounting future cash flows using current rates applicable to instruments with similar terms, currency, credit risk and remaining maturities.

-- The fair values of derivatives are estimated by using pricing models, wherein the inputs to those models are based on readily observable market parameters. The valuation models used by the group reflect the contractual terms of the derivatives (including the period to maturity), and market-based parameters such as interest rates, foreign exchange rates, volatility etc. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement and inputs thereto are readily observable.

-- The fair value of the put option liability to buy back the stake held by non-controlling interest in AMC BV (refer to Note 4(g)) is measured at the present value of the redemption amount (i.e. expected cash outflows). Since, the liability will be based on fair value of the equity shares of AMC BV (subject to a cap) at the end of 48 months, the expected cash flows are estimated by determining the projected equity valuation of the AMC BV at the end of 48 months and applying a cap thereon.

During the year ended 31 March 2022 and year ended 31 March 2021 there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

The following table describes the key inputs used in the valuation (basis discounted cash flow technique) of

the Level 2 financial assets/liabilities as of 31 March 2022              and 31 March 2021: 
 
     Financial assets / liabilities                            Inputs used 
    --------------------------------------------------        ------------------------------------------------ 
 -   Currency swaps, forward and option contracts and          Forward foreign currency exchange rates, Interest rate 
     other bank balances 
 -   Interest rate swaps                                       Prevailing / forward interest rates in market, Interest 
                                                               rate 
 -   Embedded derivatives                                      Prevailing interest rates in market, inflation rates 
 -   Other financial assets / fixed rate borrowing / other     Prevailing interest rates in market, Future payouts, 
     financial                                                 Interest rates 
     liabilities 
 
 

Reconciliation of fair value measurements categorised within level 3 of the fair value hierarchy - Financial Assets/(Liabilities) (net)

-- Cross Currency Swaps (CCS)

 
                                                 For the year ended 
                                            ---------------------------- 
                                            31 March 2022  31 March 2021 
                                            -------------  ------------- 
Opening Balance                                       (3)              - 
Issuance(1)                                             -              - 
Recognised in finance costs in profit and 
 loss(unrealized)(2)                                    0            (3) 
                                            -------------  ------------- 
Closing Balance                                       (3)            (3) 
                                            -------------  ------------- 
 

(1) The Group during the year ended 31 March 2021 had entered into a Cross Currency Swap (CCS) in one of its subsidiaries, which was accounted for as FVTPL. The fair value of CCS was estimated based on the contractual terms of the CCS and parameters such as interest rates, foreign exchange rates etc. Since, the data from any observable markets in respect of interest rates was not available, the interest rates were considered to be significant unobservable inputs to the valuation of this CCS.

(2) These amounts represent the amounts recognised in the financial statements during the year excluding the initial recognition deferment impact.

-- Put option liability (refer to note 4(g))

 
                                                    For the year ended 
                                               ---------------------------- 
                                               31 March 2022  31 March 2022 
                                               -------------  ------------- 
Opening Balance                                            -              - 
Liability recognized by debiting transaction 
 with NCI reserve                                        575              - 
Recognized in finance costs in profit and 
 loss (unrealized)                                         4              - 
                                               -------------  ------------- 
Closing Balance                                          579              - 
                                               -------------  ------------- 
 
   18.      Assets and Liabilities held for sale 

Assets and liabilities of disposal groups held for sale at 31 March 2021 related to our telecommunication tower subsidiary in Madagascar (part of Francophone Africa segment) and 162 towers and related liabilities in Rwanda (part of East Africa segment).

During the year ended 31 March 2022, the sale of 162 towers in Rwanda and tower company in Madagascar has been completed and thus the related assets and liabilities held for sale have been de-recognised.

The disposal groups were stated at their carrying values and comprised the following assets and liabilities:

 
                                                                       As of 
                                                            31 March 2022  31 March 2021 
                                                            -------------  ------------- 
Assets of disposal group classified as held for sale 
             Property, plant and equipment                        -             19 
             Capital work-in-progress                             -              0 
             Right of use assets                                  -              5 
             Income tax assets                                    -              0 
             Deferred tax assets                                  -              2 
             Trade receivables                                    -              0 
             Cash and cash equivalents                            -              1 
             Loans and security deposits                          -              0 
             Other current assets                                 -              4 
                                                            -------------  ------------- 
                                                                  -             31 
                                                            =============  ============= 
Liabilities of disposal group classified as held for sale 
               Lease liabilities                                  -              7 
               Provisions                                         -              1 
               Deferred tax liabilities                           -              1 
               Trade payables                                     -              2 
               Other current liabilities                          -              8 
                                                            -------------  ------------- 
                                                                  -             19 
                                                            =============  ============= 
 

As of 31 March 2022, the cumulative other comprehensive income relating to the disposal group classified as held for sale is Nil (as of 31 March 2021: other comprehensive loss of USD 4m).

19. Events after the balance sheet date

No material subsequent events or transactions have occurred since the date of statement of financial position except as disclosed below:

   --      The Board recommended a final dividend of 3 cents per share on 10 May 2022. 

-- In April 2022, one of the Group's subsidiaries, SMARTCASH Payment Service Bank limited , has received the final approval from the Central Bank of Nigeria for a full Payment Service Bank (PSB) licence affording the Group the opportunity to deliver a full suite of mobile money services in Nigeria

-- In April 2022, one of the Group's subsidiaries, Airtel Mobile Commerce Nigeria Ltd, has been awarded with full super agent licence by the Central Bank of Nigeria. The licence allows the Group to create an agency network that can service the customers of licenced Nigerian banks, payment service banks and licenced mobile money operators in Nigeria.

Appendix

Additional information pertaining to three months ended March 31, 2022

Consolidated Statement of Comprehensive Income (unaudited)

(All amounts are in US Dollar Millions; unless stated otherwise)

 
                                                                                For three months ended 
                                                                  -------------------------------------------------- 
                                                                   31 March 2022                       31 March 2021 
                                                                  --------------  ---------------------------------- 
       Income 
       Revenue                                                             1,222                               1,038 
       Other income                                                            2                                   1 
                                                                           1,224                               1,039 
       Expenses 
       Network operating expenses                                            213                                 183 
       Access charges                                                        104                                  97 
       License fee and spectrum usage charges                                 78                                  53 
       Employee benefits expense                                              77                                  67 
       Sales and marketing expenses                                           60                                  50 
       Impairment loss on financial assets                                   (1)                                 (1) 
       Other expenses                                                        115                                  97 
       Depreciation and amortisation                                         188                                 174 
                                                                             834                                 720 
 
       Operating profit                                                      390                                 319 
 
       Finance costs                                                         136                                 106 
       Finance income                                                        (5)                                 (2) 
       Other non-operating income                                          (101)                                   - 
       Share of profit for associate                                           0                                 (0) 
       Profit before tax                                                     360                                 215 
 
       Tax expense / (credit)                                                120                                  61 
       Profit for the period                                                 240                                 154 
 
       Profit before tax (as presented above)                                360                                 215 
       Add: Exceptional items (net)                                         (51)                                 (1) 
       Underlying profit before tax                                          309                                 214 
----------------------------------------------------------------  --------------  ---------------------------------- 
 
       Profit after tax (as presented above)                                 240                                 154 
       Add: Exceptional items (net)                                         (52)                                (22) 
       Underlying profit after tax                                           188                                 132 
----------------------------------------------------------------  --------------  ---------------------------------- 
 
  Other comprehensive income ('OCI') 
  Items to be reclassified subsequently to profit or loss: 
       Net losses due to foreign currency translation 
        differences                                                         (39)                                (94) 
       Share of OCI of associate                                               1                                   - 
       Net loss on net investments hedge                                       -                                   9 
                                                                            (38)                                (85) 
                                                                  --------------  ---------------------------------- 
  Items not to be reclassified subsequently to profit or loss: 
      Re-measurement gain on defined benefit plans                             0                                 (0) 
      Tax expense on above                                                   (0)                                   0 
                                                                               0                                 (0) 
                                                                  --------------  ---------------------------------- 
 
  Other comprehensive loss for the period                                   (38)                                (85) 
                                                                  --------------  ---------------------------------- 
 
 
 
                                                                                For three months ended 
                                                                  -------------------------------------------------- 
                                                                   31 March 2022                       31 March 2021 
                                                                  --------------  ---------------------------------- 
  Total comprehensive income for the period                                  202                                  69 
                                                                  --------------  ---------------------------------- 
 
  Profit for the period attributable to:                                     240                                 154 
 
       Owners of the Company                                                 190                                 132 
       Non-controlling interests                                              50                                  22 
 
  Other comprehensive loss for the period attributable to:                  (38)                                (85) 
 
       Owners of the Company                                                (38)                                (80) 
       Non-controlling interests                                             (0)                                 (5) 
 
  Total comprehensive income for the period attributable to:                 202                                  69 
 
       Owners of the Company                                                 152                                  52 
       Non-controlling interests                                              50                                  17 
 

Alternative performance measures (APMs)

Introduction

In the reporting of financial information, the directors have adopted various APMs. These measures are not defined by International Financial Reporting Standards (IFRS) and therefore may not be directly comparable with other companies APMs, including those in the Group's industry.

APMs should be considered in addition to, and are not intended to be a substitute for, or superior to, IFRS measurements.

Purpose

The directors believe that these APMs assist in providing additional useful information on the underlying trends, performance and position of the Group.

APMs are also used to enhance the comparability of information between reporting periods and geographical units (such as like-for-like sales), by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid users in understanding the Group's performance. Consequently, APMs are used by the directors and management for performance analysis, planning, reporting and incentive-setting purposes.

The directors believe the following metrics to be the APMs used by the Group to help evaluate growth trends, establish budgets and assess operational performance and efficiencies. These measures provide an enhanced understanding of the Group's results and related trends, therefore increasing transparency and clarity into the core results of the business.

The following metrics are useful in evaluating the Group's operating performance:

 
 APM             Closest         Adjustments to reconcile to IFRS measure                                      Definition and purpose 
                 equivalent                                                                    Table 
                 IFRS measure                                                                  reference(1) 
                                                                                                             -------------------------- 
 Underlying      Revenue                                                                                      The Group defines 
 revenue                           *    Exceptional items                                                     underlying revenue as 
                                                                                                              revenue for the period 
                                                                                                  Table A     adjusted for exceptional 
                                                                                                              items. 
                                                                                                              The directors view 
                                                                                                              underlying revenue to be 
                                                                                                              a meaningful measure to 
                                                                                                              analyse the Group's 
                                                                                                              revenue, 
                                                                                                              excluding exception 
                                                                                                              items. 
                                                                                                              Exceptional items are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size, nature or incidence 
                                                                                                              in the results, are 
                                                                                                              considered to hinder 
                                                                                                              comparison of the Group's 
                                                                                                              performance on a period 
                                                                                                              to period basis and could 
                                                                                                              distort the understanding 
                                                                                                              of our performance for 
                                                                                                              the period and 
                                                                                                              the comparability between 
                                                                                                              periods and hence are 
                                                                                                              adjusted to arrive at 
                                                                                                              underlying revenue. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Underlying      Operating                                                                                    The Group defines 
 EBITDA and      profit            *    Depreciation and amortisation                                         underlying EBITDA as 
 margin                                                                                                       operating profit/(loss) 
                                                                                                              for the period before 
                                   *    Exceptional items                                                     depreciation 
                                                                                                              and amortisation and 
                                                                                                              adjusted for exceptional 
                                                                                                              items. 
                                                                                                  Table B     The Group defines 
                                                                                                              underlying EBITDA margin 
                                                                                                              as underlying EBITDA 
                                                                                                              divided by underlying 
                                                                                                              revenue. 
                                                                                                              Underlying EBITDA and 
                                                                                                              margin are measures used 
                                                                                                              by the directors to 
                                                                                                              assess the trading 
                                                                                                              performance 
                                                                                                              of the business and are 
                                                                                                              therefore the measure of 
                                                                                                              segment profit that the 
                                                                                                              Group presents under 
                                                                                                              IFRS. Underlying EBITDA 
                                                                                                              and margin are also 
                                                                                                              presented on a 
                                                                                                              consolidated basis 
                                                                                                              because the 
                                                                                                              directors believe it is 
                                                                                                              important to consider 
                                                                                                              profitability on a basis 
                                                                                                              consistent with that 
                                                                                                              of the Group's operating 
                                                                                                              segments. When presented 
                                                                                                              on a consolidated basis, 
                                                                                                              underlying EBITDA 
                                                                                                              and margin are APMs. 
                                                                                                              Depreciation and 
                                                                                                              amortisation is a 
                                                                                                              non-cash item which 
                                                                                                              fluctuates depending on 
                                                                                                              the timing 
                                                                                                              of capital investment and 
                                                                                                              useful economic life. 
                                                                                                              Directors believe that a 
                                                                                                              measure which removes 
                                                                                                              this volatility improves 
                                                                                                              comparability of the 
                                                                                                              Group's results period on 
                                                                                                              period and hence is 
                                                                                                              adjusted to arrive at 
                                                                                                              underlying EBITDA and 
                                                                                                              margin. 
                                                                                                              Exceptional items are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size, nature or incidence 
                                                                                                              in the results, are 
                                                                                                              considered to hinder 
                                                                                                              comparison of the Group's 
                                                                                                              performance on a 
                                                                                                              period-to-period 
                                                                                                              basis and could distort 
                                                                                                              the understanding of our 
                                                                                                              performance for the 
                                                                                                              period and the 
                                                                                                              comparability 
                                                                                                              between periods and hence 
                                                                                                              are adjusted to arrive at 
                                                                                                              underlying EBITDA and 
                                                                                                              margin. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Underlying      Profit /                                                                                     The Group defines 
 profit /        (loss) before     *    Exceptional items                                                     underlying profit/(loss) 
 (loss) before   tax                                                                                          before tax as 
 tax                                                                                              Table C     profit/(loss) before tax 
                                                                                                              adjusted 
                                                                                                              for exceptional items. 
                                                                                                              The directors view 
                                                                                                              underlying profit/(loss) 
                                                                                                              before tax to be a 
                                                                                                              meaningful measure to 
                                                                                                              analyse 
                                                                                                              the Group's 
                                                                                                              profitability. 
                                                                                                              Exceptional items are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size, nature or incidence 
                                                                                                              in the results, are 
                                                                                                              considered to hinder 
                                                                                                              comparison of the Group's 
                                                                                                              performance on a 
                                                                                                              period-to-period 
                                                                                                              basis and could distort 
                                                                                                              the understanding of our 
                                                                                                              performance for the 
                                                                                                              period and the 
                                                                                                              comparability 
                                                                                                              between periods and hence 
                                                                                                              are adjusted to arrive at 
                                                                                                              underlying profit/(loss) 
                                                                                                              before tax. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Effective tax   Reported tax                                                                                 The Group defines 
 rate            rate             *    Exceptional items                                                      effective tax rate as 
                                                                                                              reported tax rate 
                                                                                                              (reported tax charge 
                                  *    Foreign exchange rate movements                                        divided by 
                                                                                                              reported profit before 
                                                                                                  Table D     tax) adjusted for 
                                  *    One-off tax impact of prior period, tax litigation                     exceptional items, 
                                       settlement and impact of tax on permanent differences                  foreign exchange rate 
                                                                                                              movements 
                                                                                                              and one-off tax items of 
                                                                                                              prior period adjustment, 
                                                                                                              tax settlements and 
                                                                                                              impact of permanent 
                                                                                                              differences on tax. 
                                                                                                              This provides an 
                                                                                                              indication of the current 
                                                                                                              on-going tax rate across 
                                                                                                              the Group. 
                                                                                                              Exceptional tax items or 
                                                                                                              any tax arising on 
                                                                                                              exceptional items are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size, nature or incidence 
                                                                                                              in the results, are 
                                                                                                              considered to hinder 
                                                                                                              comparison 
                                                                                                              of the Group's 
                                                                                                              performance on a 
                                                                                                              period-to-period basis 
                                                                                                              and could distort the 
                                                                                                              understanding 
                                                                                                              of our performance for 
                                                                                                              the period and the 
                                                                                                              comparability between 
                                                                                                              periods and hence are 
                                                                                                              adjusted 
                                                                                                              to arrive at effective 
                                                                                                              tax rate. 
                                                                                                              Foreign exchange rate 
                                                                                                              movements are specific 
                                                                                                              items that are non-tax 
                                                                                                              deductible in a few of 
                                                                                                              the entities which are 
                                                                                                              loss making and where DTA 
                                                                                                              is not yet triggered and 
                                                                                                              hence are considered 
                                                                                                              to hinder comparison of 
                                                                                                              the Group's effective tax 
                                                                                                              rate on a 
                                                                                                              period-to-period basis 
                                                                                                              and therefore 
                                                                                                              excluded to arrive at 
                                                                                                              effective tax rate. 
                                                                                                              One-off tax impact on 
                                                                                                              account of prior period 
                                                                                                              adjustment, any tax 
                                                                                                              litigation settlement and 
                                                                                                              tax impact on permanent 
                                                                                                              differences are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size 
                                                                                                              and frequency in the 
                                                                                                              results, are considered 
                                                                                                              to hinder comparison of 
                                                                                                              the Group's effective 
                                                                                                              tax rate on a 
                                                                                                              period-to-period basis. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Underlying      Profit/(loss)                                                                                The Group defines 
 profit/(loss)   for the           *    Exceptional items                                                     underlying profit/(loss) 
 after tax       period                                                                                       after tax as 
                                                                                                  Table E     profit/(loss) for the 
                                                                                                              period adjusted 
                                                                                                              for exceptional items. 
                                                                                                              The directors view 
                                                                                                              underlying profit/(loss) 
                                                                                                              after tax to be a 
                                                                                                              meaningful measure to 
                                                                                                              analyse 
                                                                                                              the Group's 
                                                                                                              profitability. 
                                                                                                              Exceptional items are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size, nature or incidence 
                                                                                                              in the results, are 
                                                                                                              considered to hinder 
                                                                                                              comparison of the Group's 
                                                                                                              performance on a 
                                                                                                              period-to-period 
                                                                                                              basis and could distort 
                                                                                                              the understanding of our 
                                                                                                              performance for the 
                                                                                                              period and the 
                                                                                                              comparability 
                                                                                                              between periods and hence 
                                                                                                              are adjusted to arrive at 
                                                                                                              underlying profit/(loss) 
                                                                                                              after tax. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Earnings per    EPS                                                                                          The Group defines 
 share before                      *    Exceptional items                                                     earnings per share before 
 exceptional                                                                                                  exceptional items as 
 items                                                                                                        profit/(loss) for the 
                                                                                                  Table F     period 
                                                                                                              before exceptional items 
                                                                                                              attributable to owners of 
                                                                                                              the company divided by 
                                                                                                              the weighted average 
                                                                                                              number of ordinary shares 
                                                                                                              in issue during the 
                                                                                                              financial period. 
                                                                                                              This measure reflects the 
                                                                                                              earnings per share before 
                                                                                                              exceptional items for 
                                                                                                              each share unit 
                                                                                                              of the company. 
                                                                                                              Exceptional items are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size, nature or incidence 
                                                                                                              in the results, are 
                                                                                                              considered to hinder 
                                                                                                              comparison of the Group's 
                                                                                                              performance on a 
                                                                                                              period-to-period 
                                                                                                              basis and could distort 
                                                                                                              the understanding of our 
                                                                                                              performance for the 
                                                                                                              period and the 
                                                                                                              comparability 
                                                                                                              between periods and hence 
                                                                                                              are adjusted to arrive at 
                                                                                                              earnings for the purpose 
                                                                                                              of earnings per 
                                                                                                              share before exceptional 
                                                                                                              items. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Operating       Cash                                                                                         The Group defines 
 free cash       generated         *    Income tax paid                                                       operating free cash flow 
 flow            from                                                                                         as net cash generated 
                 operating                                                                        Table G     from operating activities 
                 activities        *    Changes in working capital                                            before income tax paid, 
                                                                                                              changes in working 
                                                                                                              capital, other non-cash 
                                   *    Other non-cash items                                                  items, non-operating 
                                                                                                              income 
                                                                                                              and exceptional items, 
                                   *    Non-operating income                                                  less capital 
                                                                                                              expenditures. The Group 
                                                                                                              views operating free cash 
                                   *    Exceptional items                                                     flow 
                                                                                                              as a key liquidity 
                                                                                                              measure, as it indicates 
                                   *    Capital expenditures                                                  the cash available to pay 
                                                                                                              dividends, repay debt 
                                                                                                              or make further 
                                                                                                              investments in the Group. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Net debt and    Borrowings                                                                                   The Group defines net 
 leverage                           *    Lease liabilities                                                    debt as borrowings 
 ratio                                                                                                        including lease 
                                                                                                              liabilities less cash and 
                                    *    Cash and cash equivalent                                 Table H     cash equivalents, 
                                                                                                              term deposits with banks, 
                                                                                                              deposits given against 
                                    *    Term deposits with banks                                             borrowings/non-derivative 
                                                                                                              financial instruments, 
                                                                                                              processing costs related 
                                    *    Deposits given against borrowings/ non-derivative                    to borrowings and fair 
                                         financial instruments                                                value hedge adjustments. 
                                                                                                              The Group defines 
                                                                                                              leverage ratio as net 
                                    *    Fair value hedges                                                    debt divided by 
                                                                                                              underlying EBITDA. 
                                                                                                              The directors view net 
                                                                                                              debt and the leverage 
                                                                                                              ratio to be meaningful 
                                                                                                              measures to monitor the 
                                                                                                              Group's ability to cover 
                                                                                                              its debt through its 
                                                                                                              earnings. 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 Return on       No direct                                                                                    The Group defines return 
 capital         equivalent        *    Exceptional items to arrive at underlying EBIT                        on capital employed 
 employed                                                                                                     ('ROCE') as underlying 
                                                                                                              EBIT divided by average 
                                                                                                              capital employed. 
                                                                                                              The directors view ROCE 
                                                                                                  Table I     as a financial ratio that 
                                                                                                              measures the Group's 
                                                                                                              profitability and the 
                                                                                                              efficiency with which its 
                                                                                                              capital is being 
                                                                                                              utilised. 
                                                                                                              The Group defines 
                                                                                                              underlying EBIT as 
                                                                                                              operating profit/(loss) 
                                                                                                              for the period adjusted 
                                                                                                              for exceptional 
                                                                                                              items. 
                                                                                                              Exceptional items are 
                                                                                                              additional specific items 
                                                                                                              that because of their 
                                                                                                              size, nature or incidence 
                                                                                                              in the results, are 
                                                                                                              considered to hinder 
                                                                                                              comparison of the Group's 
                                                                                                              performance on a 
                                                                                                              period-to-period 
                                                                                                              basis and could distort 
                                                                                                              the understanding of our 
                                                                                                              performance for the 
                                                                                                              period and the 
                                                                                                              comparability 
                                                                                                              between periods and hence 
                                                                                                              are adjusted to arrive at 
                                                                                                              Underlying EBIT. 
                                                                                                              Capital employed is 
                                                                                                              defined as sum of equity 
                                                                                                              attributable to owners of 
                                                                                                              the company, 
                                                                                                              non-controlling 
                                                                                                              interests and net debt. 
                                                                                                              Average capital employed 
                                                                                                              is average of capital 
                                                                                                              employed at the closing 
                                                                                                              and beginning of the 
                                                                                                              relevant period. 
                                                                                                              For quarterly 
                                                                                                              computations, ROCE is 
                                                                                                              calculated by dividing 
                                                                                                              underlying EBIT for the 
                                                                                                              preceding 
                                                                                                              12 months by the average 
                                                                                                              capital employed (being 
                                                                                                              the average of the 
                                                                                                              capital employed averages 
                                                                                                              for the preceding four 
                                                                                                              quarters). 
--------------  --------------  ------------------------------------------------------------  -------------  -------------------------- 
 

(1 Refer "Reconciliation between GAAP and Alternative Performance Measures" for respective table.)

Some of the Group's IFRS measures and APMs are translated at constant currency exchange rates to measure the organic performance of the Group. In determining the percentage change in constant currency terms, both current and previous financial reporting period's results have been converted using exchange rates prevailing as on 31 March 2021. Reported currency percentage change is derived on the basis of the average actual periodic exchange rates for that financial period. Variances between constant currency and reported currency percentages are due to exchange rate movements between the previous financial reporting period and the current period.

Changes to APMs

Charity and donations are not related to the trading performance of the Group and hence were adjusted to arrive at underlying EBITDA and margin till previous periods. However, with launch of our sustainability strategy in current year, wherein "Access to educational goal" is one of the key goals, hence, the Group has revisited the definition to include the CSR expense as part of the underlying EBITDA, margin and operating free cash flow. Given the size in prior years, no changes have been made to the prior year figures.

During the year following APMs have been removed:

   --      Free cash flows - since the Group's dividends are no longer linked to such metric. 

-- Restated EPS - as this is no longer valid, as there has been no significant change in the number of shares issued between the current and previous financial reporting periods.

-- Adjusted effective tax rate - since adjustments related to any tax arising on exceptional items or any exceptional tax items are now adjusted in arriving at the effective tax rate, the separate APM for adjusted effective tax rate has been removed.

Reconciliation between GAAP and Alternative Performance Measures

Table A: Underlying revenue

 
 Description               Unit             Year ended 
                        of measure 
--------------------  -------------  ------------------------ 
                                      March 2022   March 2021 
--------------------  -------------  -----------  ----------- 
 Revenue                    $m          4,714        3,908 
 Less: 
  Exceptional items         $m            -           (20) 
--------------------  -------------  -----------  ----------- 
 Underlying revenue         $m          4,714        3,888 
--------------------  -------------  -----------  ----------- 
 

Table B: Underlying EBITDA and margin

 
 Description                           Unit             Year ended 
                                    of measure 
--------------------------------  -------------  ------------------------ 
                                                  March 2022   March 2021 
--------------------------------  -------------  -----------  ----------- 
 Operating profit                       $m          1,535        1,119 
 Add: 
  Depreciation and amortisation         $m           744          681 
  Charity and donation (1)              $m            -            6 
  Exceptional items                     $m            32          (14) 
 Underlying EBITDA                      $m          2,311        1,792 
 Underlying revenue                     $m          4,714        3,888 
--------------------------------  -------------  -----------  ----------- 
 Underlying EBITDA margin 
  (%)                                   %           49.0%        46.1% 
--------------------------------  -------------  -----------  ----------- 
 

(1) Refer changes to APMs in Alternative performance measure (APMs) section.

Table C: Underlying profit / (loss) before tax

 
 Description                       Unit             Year ended 
                                of measure 
----------------------------  -------------  ------------------------ 
                                              March 2022   March 2021 
----------------------------  -------------  -----------  ----------- 
 Profit / (loss) before tax         $m          1,224         697 
  Exceptional items (net)           $m           (60)         (14) 
 Underlying profit / (loss) 
  before tax                        $m          1,164         683 
                                                          ----------- 
 

Table D: Effective tax rate

 
 Description                          Unit                                   Year ended 
                                   of measure 
-------------------------------  ------------- 
                                                            March 2022                         March 2021 
-------------------------------  -------------  ---------------------------------  --------------------------------- 
                                                  Profit        Income       Tax     Profit        Income       Tax 
                                                   before     tax expense    rate     before     tax expense    rate 
                                                  taxation                    %      taxation                    % 
-------------------------------  -------------  ----------  -------------  ------  ----------  -------------  ------ 
 Reported effective 
  tax rate                             $m          1,224         469        38.3%      697          282        40.5% 
 Adjusted for: 
 Exceptional items (provided 
  below)                               $m          (60)           2                   (14)           36 
 Foreign exchange rate 
  movements for non-DTA 
  operating companies 
  & holding companies                  $m           50            -                    42             - 
 One-off adjustment and 
  tax on permanent differences         $m          (12)          (2)                    -           (5) 
 Effective tax rate                    $m          1,202         469        39.0%      725          313        43.2% 
                                                                                                              ------ 
 Exceptional items 
 1. Deferred tax asset 
  recognition                          $m            -            -                     -            36 
 2. Service Revenues                   $m            -             -                  (20)            - 
 3. Gain on sale of tower 
  assets                               $m          (111)           0                    -             - 
 4. Employee restructuring             $m            -             -                    6             - 
  cost 
 5. Bonds prepayment                   $m           19             -                    -             - 
  cost 
 6. Provision for settlement 
  of contractual dispute               $m           12            2                     -             - 
 7. Spectrum fee agreement             $m           20             -                    -             - 
  cost 
 Total                                 $m          (60)           2                   (14)           36 
                                                                                                              ------ 
 

Table E: Underlying profit / (loss) after tax

 
 Description                             Unit             Year ended 
                                      of measure 
----------------------------------  -------------  ------------------------ 
                                                    March 2022   March 2021 
----------------------------------  -------------  -----------  ----------- 
 Profit / (loss) after tax                $m           755          415 
  Exceptional items                       $m           (62)         (50) 
 Underlying profit / (loss) after 
  tax                                     $m           693          365 
                                                                ----------- 
 

Table F: Earnings per share before exceptional items

 
 Description                                   Unit            Year ended 
                                                 of 
                                              measure 
------------------------------------------  ----------  ------------------------ 
                                                         March 2022   March 2021 
------------------------------------------  ----------  -----------  ----------- 
 Profit for the period attributable 
  to owners of the company                      $m          631          339 
  Operating and Non-operating exceptional 
   items                                        $m          (60)         (14) 
  Tax exceptional items                         $m          (2)          (36) 
  Non-controlling interest exceptional 
   items                                        $m           33           19 
------------------------------------------  ----------  -----------  ----------- 
 Profit for the period attributable 
  to owners of the company- 
  before exceptional items                      $m          602          308 
 Weighted average number of ordinary 
  shares in issue during the financial 
  period.                                     Million      3,754        3,758 
 Earnings per share before exceptional 
  items                                        Cents        16.0         8.2 
                                                                     ----------- 
 

Table G: Operating free cash flow

 
 Description                                      Unit             Year ended 
                                               of measure 
-------------------------------------------  -------------  ------------------------ 
                                                             March 2022   March 2021 
-------------------------------------------  -------------  -----------  ----------- 
 Net cash generated from operating 
  activities                                       $m          2,011        1,666 
    Add: Income tax paid                           $m           293          195 
 Net cash generation from operation 
  before tax                                       $m          2,304        1,861 
 Less: Changes in working capital 
        Increase in trade receivables              $m            18           8 
        (Decrease)/Increase in inventories         $m           (4)           4 
        (Increase)/Decrease in trade 
         payables                                  $m           (34)          38 
        Increase in mobile money wallet 
         balance                                   $m           (64)        (139) 
        Increase in provisions                     $m           (14)         (1) 
        Increase in deferred revenue               $m           (27)         (17) 
        Decrease in income received 
         in advance                                $m            -            1 
        Increase in other financial 
         and non-financial liabilities             $m           (50)         (18) 
        Increase in other financial 
         and non-financial assets                  $m           144           48 
 Operating cash flow before changes 
  in working capital                               $m          2,273        1,785 
      Other non-cash adjustments                   $m            6            15 
      Charity and donation (1)                     $m            -            6 
      Operating exceptional items                  $m            32          (14) 
 Underlying EBITDA                                 $m          2,311        1,792 
     Less: Capital expenditure                     $m          (656)        (614) 
 Operating free cash flow                          $m          1,655        1,178 
                                                                         ----------- 
 

(1) Refer changes to APMs in Alternative performance measure (APMs) section.

Table H: Net debt and leverage

 
 Description                                         Unit                 As at                      As at 
                                                  of measure 
----------------------------------------------  ------------- 
                                                                       March 2022                  March 2021 
----------------------------------------------  -------------  --------------------------  ------------------------- 
 Long term borrowing, net of current 
  portion                                             $m                  1,486                      1,871 
 Short-term borrowings and current 
  portion of long-term borrowing                      $m                   786                       1,468 
     Add: Processing costs related to 
      borrowings                                      $m                    5                          5 
     Add/(less): Fair value hedge adjustment          $m                  (16)                        (21) 
     Less: Cash and cash equivalents                  $m                  (638)                      (813) 
     Less: Term deposits with banks                   $m                  (220)                      (257) 
     Less: Deposits given against borrowings/         $m                  (122)                        - 
      non-derivative financial instruments 
     Add: Lease liabilities                           $m                  1,660                      1,277 
 Net debt                                             $m                  2,941                      3,530 
                                                                                           ------------------------- 
 Underlying EBITDA (LTM)                              $m                            2,311                      1,792 
 Leverage (LTM)                                     times                 1.3x                        2.0x 
----------------------------------------------  -------------  --------------------------  ------------------------- 
 

Table I: Return on capital employed

 
            Description                Unit            Year ended 
                                         of 
                                      measure 
----------------------------------  ----------  ------------------------ 
                                                 March 2022   March 2021 
----------------------------------  ----------  -----------  ----------- 
 Operating profit                       $m         1,535        1,119 
 Less: 
  Operating exceptional items           $m           32          (14) 
----------------------------------  ----------  -----------  ----------- 
 Underlying EBIT                        $m         1,567        1,105 
----------------------------------  ----------  -----------  ----------- 
 Equity attributable to owners of 
  the Company                           $m         3,502        3,405 
 Non-controlling interests (NCI)        $m          147          (52) 
 Net debt (refer Table H)               $m         2,941        3,530 
----------------------------------  ----------  -----------  ----------- 
 Capital employed                       $m         6,590        6,883 
----------------------------------  ----------  -----------  ----------- 
 Average capital employed (1)           $m         6,736        6,705 
----------------------------------  ----------  -----------  ----------- 
 Return on capital employed              %         23.3%        16.5% 
----------------------------------  ----------  -----------  ----------- 
 

(1) Average capital employed is calculated as average of capital employed at closing and opening of relevant period. Capital employed at the beginning of year ended 31 March 2022 and 2021 is $ 6,883m and $ 6,528m respectively.

Glossary

Technical and Industry Terms

 
4G data customer                                             A customer having a 4G handset and who has used at least 
                                                             1 MB on any of the Group's GPRS, 
                                                             3G & 4G network in the last 30 days. 
----------------------------------------------------------  ---------------------------------------------------------- 
Airtel Money (mobile money)                                  Airtel Money is the brand name for Airtel Africa's mobile 
                                                             money products and services. The 
                                                             term is used interchangeably with 'mobile money' when 
                                                             referring to our mobile money business, 
                                                             finance, operations and activities. 
----------------------------------------------------------  ---------------------------------------------------------- 
Airtel Money ARPU                                            Mobile money average revenue per user per month. This is 
                                                             derived by dividing total mobile 
                                                             money revenue during the relevant period by the average 
                                                             number of active mobile money customers 
                                                             and dividing the result by the number of months in the 
                                                             relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Airtel Money customer base                                   Total number of active subscribers who have enacted any 
                                                             mobile money usage event in last 30 
                                                             days. 
----------------------------------------------------------  ---------------------------------------------------------- 
Airtel Money customer penetration                            The proportion of total Airtel Africa active mobile 
                                                             customers who use mobile money services. 
                                                             Calculated by dividing the mobile money customer base by 
                                                             the Group's total customer base. 
----------------------------------------------------------  ---------------------------------------------------------- 
Airtel Money transaction value                               Any financial transaction performed on Airtel Africa's 
                                                             mobile money platform. 
----------------------------------------------------------  ---------------------------------------------------------- 
Airtel Money transaction value per customer per month        Calculated by dividing the total mobile money transaction 
                                                             value on the Group's mobile money 
                                                             platform during the relevant period by the average number 
                                                             of active mobile money customers 
                                                             and dividing the result by the number of months in the 
                                                             relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Airtime credit service                                       A value-added service where the customer can take an 
                                                             airtime credit and continue to use our 
                                                             voice and data services, with the credit recovered 
                                                             through subsequent customer recharge. This 
                                                             is classified as a Mobile Services product (not a Mobile 
                                                             Money product). 
----------------------------------------------------------  ---------------------------------------------------------- 
ARPU                                                         Average revenue per user per month. This is derived by 
                                                             dividing total revenue during the relevant 
                                                             period by the average number of customers during the 
                                                             period and dividing the result by the 
                                                             number of months in the relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Average customers                                            The average number of active customers for a period. 
                                                             Derived from the monthly averages during 
                                                             the relevant period. Monthly averages are calculated 
                                                             using the number of active customers 
                                                             at the beginning and the end of each month. 
----------------------------------------------------------  ---------------------------------------------------------- 
Capital expenditure                                          An alternative performance measure (non-GAAP). Defined as 
                                                             investment in gross fixed assets 
                                                             (both tangible and intangible but excluding spectrum and 
                                                             licences) plus capital work in progress 
                                                             (CWIP), excluding provisions on CWIP for the period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Constant currency                                            The Group has presented certain financial information 
                                                             that is calculated by translating the 
                                                             results for the current financial year and previous 
                                                             financial years at a fixed 'constant currency' 
                                                             exchange rate, which is done to measure the organic 
                                                             performance of the Group. Growth rates 
                                                             for reporting regions and service segments are in 
                                                             constant currency as it better represents 
                                                             the underlying performance of the business. Constant 
                                                             currency growth rates for prior periods 
                                                             are calculated using closing exchange rates as at the end 
                                                             of prior period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Customer                                                     Defined as a unique active subscriber with a unique 
                                                             mobile telephone number who has used any 
                                                             of Airtel's services in the last 30 days. 
----------------------------------------------------------  ---------------------------------------------------------- 
Customer base                                                The total number of active subscribers that have used any 
                                                             of our services (voice calls, SMS, 
                                                             data usage or mobile money transaction) in the last 30 
                                                             days. 
----------------------------------------------------------  ---------------------------------------------------------- 
Data ARPU                                                    Data average revenue per user per month. Data ARPU is 
                                                             derived by dividing total data revenue 
                                                             during the relevant period by the average number of data 
                                                             customers and dividing the result 
                                                             by the number of months in the relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Data customer base                                           The total number of subscribers who have consumed at 
                                                             least 1 MB on the Group's GPRS, 3G or 
                                                             4G network in the last 30 days. 
----------------------------------------------------------  ---------------------------------------------------------- 
Data customer penetration                                    The proportion of customers using data services. 
                                                             Calculated by dividing the data customer 
                                                             base by the total customer base. 
----------------------------------------------------------  ---------------------------------------------------------- 
Data usage per customer per month                            Calculated by dividing the total MBs consumed on the 
                                                             Group's network during the relevant period 
                                                             by the average data customer base over the same period 
                                                             and dividing the result by the number 
                                                             of months in the relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Digitalisation                                               We use the term digitalisation in its broadest sense to 
                                                             encompass both digitisation actions 
                                                             and processes that convert analogue information into a 
                                                             digital form and thereby bring customers 
                                                             into the digital environment, and the broader 
                                                             digitalisation processes of controlling, connecting 
                                                             and planning processes digitally; the processes that 
                                                             effect digital transformation of our 
                                                             business, and of industry, economics and society as a 
                                                             whole through bringing about new business 
                                                             models, socio-economic structures and organisational 
                                                             patterns. 
----------------------------------------------------------  ---------------------------------------------------------- 
Diluted earnings per share                                   Diluted EPS is calculated by adjusting the profit for the 
                                                             year attributable to the shareholders 
                                                             and the weighted average number of shares considered for 
                                                             deriving basic EPS, for the effects 
                                                             of all the shares that could have been issued upon 
                                                             conversion of all dilutive potential shares. 
                                                             The dilutive potential shares are adjusted for the 
                                                             proceeds receivable had the shares actually 
                                                             been issued at fair value. Further, the dilutive 
                                                             potential shares are deemed converted as 
                                                             at beginning of the period, unless issued at a later date 
                                                             during the period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Earnings per share (EPS)                                     EPS is calculated by dividing the profit for the period 
                                                             attributable to the owners of the 
                                                             company by the weighted average number of ordinary shares 
                                                             outstanding during the period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Foreign exchange rate movements for non-DTA operating        Foreign exchange rate movements are specific items that 
companies                                                    are non-tax deductible in a few of 
and holding companies                                        our operating entities, hence these hinder a 
                                                             like-for-like comparison of the Group's effective 
                                                             tax rate on a period-to-period basis and are therefore 
                                                             excluded when calculating the effective 
                                                             tax rate. 
----------------------------------------------------------  ---------------------------------------------------------- 
Indefeasible Rights of Use (IRU)                             A standard long-term leasehold contractual agreement that 
                                                             confers upon the holder the exclusive 
                                                             right to use a portion of the capacity of a fibre route 
                                                             for a stated period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Information and communication technologies (ICT)             ICT refers to all communication technologies, including 
                                                             the internet, wireless networks, cell 
                                                             phones, computers, software, middleware, 
                                                             videoconferencing, social networking, and other media 
                                                             applications and services. 
----------------------------------------------------------  ---------------------------------------------------------- 
Interconnect user charges (IUC)                              Interconnect user charges are the charges paid to the 
                                                             telecom operator on whose network a 
                                                             call is terminated. 
----------------------------------------------------------  ---------------------------------------------------------- 
Lease liability                                              Lease liability represents the present value of future 
                                                             lease payment obligations. 
----------------------------------------------------------  ---------------------------------------------------------- 
Leverage                                                     An alternative performance measure (non-GAAP). Leverage 
                                                             (or leverage ratio) is calculated 
                                                             by dividing net debt at the end of the relevant period by 
                                                             the underlying EBITDA for the preceding 
                                                             12 months. 
----------------------------------------------------------  ---------------------------------------------------------- 
Minutes of usage                                             Minutes of usage refer to the duration in minutes for 
                                                             which customers use the Group's network 
                                                             for making and receiving voice calls. It includes all 
                                                             incoming and outgoing call minutes, 
                                                             including roaming calls. 
----------------------------------------------------------  ---------------------------------------------------------- 
Mobile services                                              Mobile services are our core telecom services, mainly 
                                                             voice and data services, but also including 
                                                             revenue from tower operation services provided by the 
                                                             Group and excluding mobile money services. 
----------------------------------------------------------  ---------------------------------------------------------- 
Net debt                                                     An alternative performance measure (non-GAAP). The Group 
                                                             defines net debt as borrowings including 
                                                             lease liabilities less cash and cash equivalents, term 
                                                             deposits with banks, processing costs 
                                                             related to borrowings and fair value hedge adjustments. 
----------------------------------------------------------  ---------------------------------------------------------- 
Net debt to underlying EBITDA (LTM)                          An alternative performance measure (non-GAAP) Calculated 
                                                             by dividing net debt as at the end 
                                                             of the relevant period by underlying EBITDA for the 
                                                             preceding 12 months (from the end of the 
                                                             relevant period). This is also referred to as the 
                                                             leverage ratio. 
----------------------------------------------------------  ---------------------------------------------------------- 
Network towers or 'sites'                                    Physical network infrastructure comprising a base 
                                                             transmission system (BTS) which holds the 
                                                             radio transceivers (TRXs) that define a cell and 
                                                             coordinates the radio link protocols with 
                                                             the mobile device. It includes all ground-based, roof top 
                                                             and in-building solutions. 
----------------------------------------------------------  ---------------------------------------------------------- 
Operating company (OpCo)                                     Operating company (or OpCo) is a defined corporate 
                                                             business unit, providing telecoms services 
                                                             and mobile money services in the Group's footprint. 
----------------------------------------------------------  ---------------------------------------------------------- 
Operating free cash flow                                     An alternative performance measure (non-GAAP). Calculated 
                                                             by subtracting capital expenditure 
                                                             from underlying EBITDA. 
----------------------------------------------------------  ---------------------------------------------------------- 
Operating leverage                                           An alternative performance measure (non-GAAP). Operating 
                                                             leverage is a measure of the operating 
                                                             efficiency of the business. It is calculated by dividing 
                                                             operating expenditure (excluding 
                                                             regulatory charges) by total revenue. 
----------------------------------------------------------  ---------------------------------------------------------- 
Operating profit                                             Operating profit is a GAAP measure of profitability. 
                                                             Calculated as revenue less operating 
                                                             expenditure (including depreciation and amortisation and 
                                                             operating exceptional items). 
----------------------------------------------------------  ---------------------------------------------------------- 
Other revenue                                                Other revenue includes revenues from messaging, value 
                                                             added services (VAS), enterprise, site 
                                                             sharing and handset sale revenue. 
----------------------------------------------------------  ---------------------------------------------------------- 
Reported currency                                            Our reported currency is US dollars. Accordingly, actual 
                                                             periodic exchange rates are used 
                                                             to translate the local currency financial statements of 
                                                             OpCos into US dollars. Under reported 
                                                             currency the assets and liabilities are translated into 
                                                             US dollars at the exchange rates prevailing 
                                                             at the reporting date whereas the statements of profit 
                                                             and loss are translated into US dollars 
                                                             at monthly average exchange rates. 
----------------------------------------------------------  ---------------------------------------------------------- 
Smartphone                                                   A smartphone is defined as a mobile phone with an 
                                                             interactive touch screen that allows the 
                                                             user to access the internet and additional data 
                                                             applications, providing additional functionality 
                                                             to that of a basic feature phone which is used only for 
                                                             making voice calls and sending and 
                                                             receiving text messages. 
----------------------------------------------------------  ---------------------------------------------------------- 
Smartphone penetration                                       Calculated by dividing the number of smartphone devices 
                                                             in use by the total number of customers. 
----------------------------------------------------------  ---------------------------------------------------------- 
Total MBs on network                                         Total MBs consumed (uploaded & downloaded) by customers 
                                                             on the Group's GPRS, 3G and 4G network 
                                                             during the relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Underlying EBIT                                              Defined as operating profit/(loss) for the period 
                                                             adjusted for exceptional items. 
----------------------------------------------------------  ---------------------------------------------------------- 
Underlying EBITDA                                            An alternative performance measure (non-GAAP). Defined as 
                                                             operating profit before depreciation, 
                                                             amortisation and exceptional items. 
----------------------------------------------------------  ---------------------------------------------------------- 
Underlying EBITDA margin                                     An alternative performance measure (non-GAAP). Calculated 
                                                             by dividing underlying EBITDA for 
                                                             the relevant period by revenue for the relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Underlying Revenue                                           An alternative performance measure (non-GAAP). Defined as 
                                                             revenue before exceptional items. 
----------------------------------------------------------  ---------------------------------------------------------- 
Unstructured Supplementary Service Data                      Unstructured Supplementary Service Data (USSD), also 
                                                             known as "quick codes" or "feature codes", 
                                                             is a communications protocol for GSM mobile operators, 
                                                             similar to SMS messaging. It has a 
                                                             variety of uses such as WAP browsing, prepaid callback 
                                                             services, mobile-money services, location-based 
                                                             content services, menu-based information services, and 
                                                             for configuring phones on the network. 
----------------------------------------------------------  ---------------------------------------------------------- 
Voice minutes of usage per customer per month                Calculated by dividing the total number of voice minutes 
                                                             of usage on the Group's network during 
                                                             the relevant period by the average number of customers 
                                                             and dividing the result by the number 
                                                             of months in the relevant period. 
----------------------------------------------------------  ---------------------------------------------------------- 
Weighted average number of shares                            The weighted average number of shares is calculated by 
                                                             multiplying the number of outstanding 
                                                             shares by the portion of the reporting period those 
                                                             shares covered, doing this for each portion 
                                                             and then summing the total. 
----------------------------------------------------------  ---------------------------------------------------------- 
 

Abbreviations

 
2G           Second-generation mobile technology 
----------  ------------------------------------------------ 
3G           Third-generation mobile technology 
----------  ------------------------------------------------ 
4G           Fourth-generation mobile technology 
----------  ------------------------------------------------ 
ARPU         Average revenue per user 
----------  ------------------------------------------------ 
bn           Billion 
----------  ------------------------------------------------ 
bps          Basis points 
----------  ------------------------------------------------ 
CAGR         Compound annual growth rate 
----------  ------------------------------------------------ 
Capex        Capital expenditure 
----------  ------------------------------------------------ 
CSR          Corporate social responsibility 
----------  ------------------------------------------------ 
DTA          Deferred Tax Asset 
----------  ------------------------------------------------ 
EBIT         Earnings before interest and tax 
----------  ------------------------------------------------ 
EBITDA       Earnings before interest, tax, depreciation and 
              amortisation 
----------  ------------------------------------------------ 
EPS          Earnings per share 
----------  ------------------------------------------------ 
FPPP         Financial position and prospects procedures 
----------  ------------------------------------------------ 
GAAP         Generally accepted accounting principles 
----------  ------------------------------------------------ 
GB           Gigabyte 
----------  ------------------------------------------------ 
HoldCo       Holding company 
----------  ------------------------------------------------ 
IAS          International accounting standards 
----------  ------------------------------------------------ 
ICT          Information and communication technologies 
----------  ------------------------------------------------ 
ICT (Hub)    Information communication technology (Hub) IFRS 
----------  ------------------------------------------------ 
IFRS         International financial reporting standards 
----------  ------------------------------------------------ 
IMF          International monetary fund 
----------  ------------------------------------------------ 
IPO          Initial public offering 
----------  ------------------------------------------------ 
KPIs         Key performance indicators 
----------  ------------------------------------------------ 
KYC          Know your customer 
----------  ------------------------------------------------ 
LTE          Long-term evolution (4G technology) 
----------  ------------------------------------------------ 
LTM          Last 12 months 
----------  ------------------------------------------------ 
m            Million 
----------  ------------------------------------------------ 
MB           Megabyte 
----------  ------------------------------------------------ 
MI           Minority interest (non-controlling interest) 
----------  ------------------------------------------------ 
NGO          Non-governmental organisation 
----------  ------------------------------------------------ 
OpCo         Operating company 
----------  ------------------------------------------------ 
P2P          Person to person 
----------  ------------------------------------------------ 
PAYG         Pay-as-you-go 
----------  ------------------------------------------------ 
QoS          Quality of service 
----------  ------------------------------------------------ 
RAN          Radio access network 
----------  ------------------------------------------------ 
SIM          Subscriber identification module 
----------  ------------------------------------------------ 
Single RAN   Single radio access network 
----------  ------------------------------------------------ 
SMS          Short messaging service 
----------  ------------------------------------------------ 
TB           Terabyte 
----------  ------------------------------------------------ 
Telecoms     Telecommunications 
----------  ------------------------------------------------ 
UoM          Unit of measure 
----------  ------------------------------------------------ 
USSD         Unstructured supplementary service data 
----------  ------------------------------------------------ 
 

Risk Factors

The Group's business and the industry in which it operates, together with all other information contained in this document, including, in particular, the risk factors summarised below. Additional risks and uncertainties relating to the Group that are not currently known to the Group, or that the Group currently deem immaterial, may individually or cumulatively also have a material adverse effect on the Group's business, results of operations and financial condition.

Principal risks summarised

1. We operate in a competitive environment with the potential for aggressive competition by existing players, or the entry of new players, which could both put a downward pressure on prices, adversely affecting our revenue and profitability.

2. Failure to innovate through simplifying the customer experience, developing adequate digital touchpoints in line with changing customer needs and competitive landscape could lead to loss of customers and market share.

3. An inability to invest and upgrade our network and IT infrastructure could affect our ability to compete effectively in the market.

4. Cybersecurity threats through internal or external sabotage or system vulnerabilities could potentially result in customer data breaches and/or service downtimes.

5. Adverse changes in our external business environment, macro-economic conditions and/or supply chain processes could lead to a significant increase in our operating cost structure and negatively impact profitability.

6. Shortages of skilled telecommunications professionals in some markets and the inability to identify and develop successors for key leadership positions could both lead to disruptions in the execution of our corporate strategy.

7. Our internal control environment is subject to the risk that controls may become inadequate due to changes in internal or external conditions, new accounting requirements, delays, or inaccuracies in reporting.

8. Our telecommunications networks are subject to the risks of technical failures, aging infrastructure, human error, wilful acts of destruction or natural disasters.

9. Our multinational footprint means we are exposed to the risks of currency fluctuations including the availability of funds for repatriation to the Group company triggered by adverse macroeconomic conditions in the markets where we operate.

10. We operate in a diverse and dynamic legal, tax and regulatory environment. A failure to comply with relevant laws and regulations could lead to penalties, sanctions, and reputational damage.

11. Continued disruptions and uncertainties caused by the Covid-19 pandemic may impact the Group's ability to operate its business effectively and to achieve its objectives.

[1] Alternative performance measures (APM) are described on page 51.

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END

FR FIFIIEIILLIF

(END) Dow Jones Newswires

May 11, 2022 02:02 ET (06:02 GMT)

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