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In a statement, the mobile service provider stated that the decision not only protects its rights as a business entity but also the trust placed by millions of Kenyan customers on the network/FILE

Kenya

Airtel Africa doubles data revenue but net income stagnates

Active Airtel Money customer base hit 8.7 million, increasing the total transaction value on Airtel Money platform by 31.4 percent to Sh446 billion/LIVEMINT

NAIROBI, Kenya, Jul 26 – Data revenue is now the biggest contributor to revenue growth for Airtel Africa for the first three months of 2017.

The mobile telco says data revenues contribute 18.7 per cent of overall Africa revenue compared to 16.9 percent same period in 2016.

Data revenues hit Sh14.3 billion growing by 11.3 percent year on year, fuelled by an increase in Data customer base by 19.4 percent.

Airtel Africa Chief Executive Raghunath Mandava says efforts to optimize unprofitable revenue streams resulted in higher net revenue growth of 3.3 percent

“New KYC norms impacted customer additions and consequently revenue growth in the quarter. The data story in Africa is unfolding well with consumption and revenue increasing,” said Raghunath Mandava MD and CEO, Africa.

Africa underlying revenues, however, grew flat by 1.5 percent year on year.

Active Airtel Money customer base hit 8.7 million, increasing the total transaction value on Airtel Money platform by 31.4 percent to Sh446 billion.

“Our focus to deliver a more profitable business model for Africa has resulted in another quarter of EBITDA margin improvement, with underlying margins expanding by 8.1 percent year on year from 19.9 per cent to 28 per cent,” Mandava added.

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