NGX-listed Airtel Africa to buy back $100m worth of its shares
TLDR
- Airtel Africa plans to repurchase $100 million worth of its shares
- The buyback program will start in March and last for 12 months
- Despite a decline in profit, Airtel Africa's Board is confident in the company's long-term growth prospects
Airtel Africa has revealed plans to repurchase $100 million worth of its shares from the market, marking a significant move expected to commence in March and extend over 12 months.
The telecommunications company, listed on the Nigerian Exchange, revealed this initiative alongside the release of its nine-month financial report, covering the period ending December 2023. Despite a decline in profit during this period, Airtel Africa's Board expressed confidence in the long-term growth prospects of the Group.
The Board emphasized its belief that share repurchasing represents an attractive use of capital, reflecting the company's robust growth outlook. Airtel Africa intends to execute the buyback program utilizing its cash reserves and by applicable securities laws and regulations.
Key Takeaways
Share repurchase, also known as share buyback or stock buyback, is the re-acquisition by a company of its shares. It represents an alternate and more flexible way of returning money to shareholders. Airtel Africa's decision to initiate a share buyback coincides with a significant decline in its post-tax profit, which plummeted by 99.6% to $2 million for the nine months ending December 2023, compared to $523 million for the same period in 2022. Despite this downturn, the company experienced notable growth in its total customer base, which expanded by 9.1% to reach 151.2 million. Airtel Africa attributes this growth to the increasing penetration of mobile data and mobile money services. Specifically, the company reported a 22.4% surge in data customers, reaching 62.7 million, and a 19.5% increase in mobile money customers, totaling 37.5 million. These trends reflect the continued demand and adoption of digital services among consumers across its operating regions.
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