CLSA says that in FY21, Bharti Airtel’s Africa revenue increased 15 per cent YoY to US $1038 mn and Ebitda was up 25 per cent YoY. Data and mobile money account for 44 per cent of its Africa revenue. Revenue growth was across regions, with East Africa up 24 per cent YoY and Nigeria up 23 per cent YoY. Airtel Africa’s FY21 cash flow after Capex and interest costs was US $647 mn, up 43 per cent YoY, and the region’s gearing is comfortable at 2x EBITDA. In value unlocking, Airtel Africa is selling a 12 per cent stake of mobile money for US$300m, implying a valuation of US $2.65 bn. Africa accounts for 30 per cent of Airtel’s consolidated revenue and EBITDA and both its Africa operations and Airtel are undervalued, in CLSA’s view.

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In 4QFY21, Airtel Africa’s revenue was up 15 per cent YoY to US $1038 mn and Ebitda was up 25 per cent YoY to US $495 mn, both ahead of estimates. Its margin expanded 353bps to 47.7 per cent. The subscriber (net additions at 7.6m in FY21) loss of 0.7m loss in 4QFY21 to 118m was below our estimate but Arpu was up 11 per cent YoY at US$3, ahead of CLSA’s estimate. Voice revenue rose 7 per cent YoY, data revenue was up 24 per cent YoY & mobile money was up 30 per cent YoY. Data & mobile money accounted for 44 per cent of revenue, and PAT at US$132m was up 103 per cent YoY, highlights CLSA.

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Bharti Airtel Ltd-View Detailed Analysis