Investors renewed their appetite for the shares of Airtel Africa Plc, which helped Nigeria’s equities market to gain about N317billion at the close of trading session on Tuesday August 10.
After a negative start to this week, Airtel Africa Plc stocks which had reach remarkable low rallied from day open level of N650 to N715, up by N65 or 10percent.
The record positive close helped reduce the stock market’s negative return this year to -2.72percent.
At the close of trading on the Bourse, the NGX All-Share Index (ASI) and Market Capitalisation increased from 38,567.26 points and N20.094trillion respectively to 39,176.62 points and N20.411trillion.
GOC Gas, GTCo, ETI, Jaiz Bank and FBN Holdings were most traded stocks Tuesday on the Nigerian Exchange Limited. In 4,161 deals, investors exchanged 474.528million shares valued at N3.98billion.
Other stocks that gained include: Unity Bank (4kobo or 7.14 percent) and Caverton Offshore Support Group (7kobo or 3.89percent).
Read also: MTNN, Airtel stocks still show upside potential despite regulatory headwinds
Airtel Africa Plc in the quarter ended June 30 posted strong financial and operational performance with further improvement in revenue growth trends.
According to Raghunath Mandava, chief executive officer, Airtel Africa Plc recently said that in these challenging times, the Telco’s business model has so far proven resilient.
In the first quarter (Q1) reported revenue grew by 30.7percent to $1.112billion, with constant currency growth of 33.1percent. Revenue growth partially benefitted from a weakened quarter in the prior year during the peak of Covid-19 restrictions across the region.
Airtel’s strong revenue growth was recorded across all regions: Nigeria up 38.2percent, East Africa up 32.8percent and Francophone Africa up 24.9percent; and across key services, with revenues for voice up 26percent, data up 37.4percent and mobile money up 53.7percent.
Underlying EBITDA grew by 42.4percent to $534million in reported currency, while constant currency growth was 46.2percent. Underlying EBITDA margin was 48 percent, an increase of 396 basis points (increase of 428 basis points in constant currency) led by both revenue growth and improved operational efficiencies.
Operating profit was $352million, up 67.6percentin reported currency and 73.9percent in constant currency. Profit after tax more than doubled to $142million, up 148.7percent, largely due to the higher operating profits along with stable net finance costs which more than offset the increase in tax charges due to increased profits. Basic Earnings per share (EPS) was 3.3 cents, an increase of 200percent, as a result of higher profit and stable finance costs and foreign exchange.
