Priding themselves in having the largest 4G network in Nigeria, Airtel, one of Nigeria’s most popular telecommunication network is smiling to the bank as they experienced a jump in their books which led to them to having an increase in their monetary value (Airtel money).
Airtel Africa credited investments to expand its agent network and increase its merchant footprints for increasing the number of mobile money users across its markets by more than 20 per cent year-on-year in Q4 2019.
According to its financial statement, it was seen that the company had 16.6 million active customers using the service at the end of the quarter compared with 13.8 million at the same point in 2018.
Its total transaction value on the platform in the recent quarter was $8.4 billion, up 28 per cent year-on-year. The mobile money revenue was $82 million compared with $64 million.
It is imperative to note that 15.5 percent of its mobile customer base took Airtel Money services by end 2019, with the product available across 14 markets.
During its review of the quarter, Airtel added its growth in its financial customer base
“was largely driven by expansion of the distribution network, as we continued as we continued to invest in exclusive kiosks and mobile money branches, up 30.6 percent and 157 percents respectively”.
The expansion of the merchant ecosystem and the provision of more affordable tariffs contributed further to transaction value growth.
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In Q4, it’s customer service base increased 9.4 percent to 107 million with revenue up to 12.8 percent to $883 million. Attributing the growth in its earnings to increased data usage and improved voice revenue driven by its larger customer base.
Net profit was $103 million, down 22.5 percent and this was largely due to accruing a greater tax liability versus Q4 2018, though the company noted its results in 2018 included a tax credit and other one-off items.