Airtel Africa Plc, a leading telecommunications company, has made headlines in the financial market by announcing a record-breaking dividend payout totalling a staggering N276 billion for the 2023 financial year.
In line with its dividend policy, Airtel Africa’s board of directors has proposed a final dividend of $0.0391 (N14.8599) per share, pending shareholders’ approval at the upcoming annual general meeting. Combined with the interim dividend of $0.0154 (N5.80) per share paid earlier in 2023, this culminates in an impressive total dividend of $0.0545 (N20.6599) per share for the year.
Financial Performance Highlights
Airtel Africa’s stellar financial performance for the 2023 fiscal year is attributed to its expanding customer base, which surged by 9 per cent to reach a staggering 152 million, and the exponential growth of its mobile money business.
According to a report by Nairametrics, the company’s mobile money revenue experienced a substantial 38.2 per cent increase, with an annual transaction value surpassing $112 billion.
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However, despite these achievements, the company faced challenges as its revenue decreased by 5.3 per cent in reported currency, falling from $5.26 billion to $4.98 billion in 2024.
Furthermore, the company experienced a significant decline in profit after tax, recording a loss of approximately $89 million compared to the $750 million profit after tax in the previous year.
Resilience and Strategic Initiatives
Despite these challenges, Airtel Africa remains resilient in its commitment to shareholder value. The company continues its $100 million share buyback program, scheduled to conclude in August 2024.
The initial phase of the buyback, representing approximately 17,086,055 million shares, or £17.83 million, is currently underway on the London Stock Exchange, facilitated by Citigroup Global Markets.
Financial Maneuvers and Investments
Airtel Africa disclosed the repayment of a $550 million bond by one of its subsidiary companies, showcasing its strategic financial maneuvers.
Additionally, alongside its developing share repurchase programme and a dividend payment of $224 million, the company announced plans to make substantial investments during the current fiscal year, reaffirming its dedication to growth and innovation.
Airtel Africa’s Position as a Dividend Leader in Nigeria
Airtel Africa’s dividend payout not only underscores its commitment to rewarding shareholders but also positions it as one of the highest dividend-paying companies in Nigeria.
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With a dividend policy aimed at disbursing at least 60 per cent of its profit after tax, the company’s remarkable total dividend payout of N276 billion speaks volumes about its financial strength and shareholder-centric approach.
Looking Ahead
Shareholders can anticipate receiving the final dividend of $0.0391 (N14.8599) per share on July 26, 2024, provided their names appear on the company’s register as of June 21, 2024. However, it’s important to note that the dividend payment is subject to withholding tax at the applicable rate.
In light of its growing customer base, expanding mobile money business, and resilient financial performance, Airtel Africa emerges as an enticing investment opportunity for investors. The company’s generous dividend payout serves as a testament to its unwavering commitment to shareholder value and its optimistic outlook for future growth and prosperity.
