Airtel plans to sell stake in mobile money service.

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London-listed Airtel Africa Plc, which operates in 14 countries in Africa, including Kenya, Uganda, and Nigeria, plans to sell a minority stake in its mobile financial services platform Airtel Money to raise money.

“We are actively pursuing the sale of the remaining owned tower sites that sit across several of our operating countries and the group is in discussions with various potential investors in relation to possible minority investments into Airtel Money,” the firm says in a trading update.

“Discussions are ongoing between the parties and there can be no certainty that a transaction will be concluded or as to the final terms of any transaction.”

In as much as the multinational says that it’s a part of a strategy of selling some assets, the company did not specify the amount of money it could raise from the proposed deal.

During nine months ending December 2020, Airtel Money’s revenues in the 14 African markets stood at $291 million (Sh32 billion).

The revenue constitutes a 34.2 percent growth in constant currency terms from $228 million (Sh25.1 billion) a year earlier. Over the same period, the value of transactions on the platform increased to $33.4 billion (Sh3.6 trillion) from $23.3 billion (Sh2.5 trillion).

“Our mobile money customer base reached 21.5 million, up 29 percent over the previous period, with Airtel Money customers now representing 18 percent of our total customers, an increase of 2.5 percentage points,” the multinational said.

“Mobile money average revenue per user (ARPU) was up 5.1 percent to $1.7 (Sh187), driven by the increase in transaction values and a higher contribution from merchant payments, cash out, person-to-person transfer and recharge of mobile services through Airtel Money.”

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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