4G data customer

A customer having a 4G handset and who has used at least 1 MB on any of the Group’s GPRS, 3G and 4G network in the last 30 days.

Airtel Money (mobile money)

Airtel Money is the brand name for Airtel Africa’s mobile money products and services. The term is used interchangeably with ‘mobile money’ when referring to our mobile money business, finance, operations and activities.

Airtel Money ARPU

Mobile money average revenue per user per month. This is derived by dividing total mobile money revenue during the relevant period by the average number of active mobile money customers and dividing the result by the number of months in the relevant period.

Airtel Money customer base

Total number of active subscribers who have enacted any mobile money usage event in last 30 days.

Airtel Money customer penetration

The proportion of total Airtel Africa active mobile customers who use mobile money services. Calculated by dividing the mobile money customer base by the Group’s total customer base.

Airtel Money transaction value

Any financial transaction performed on Airtel Africa’s mobile money platform.

Airtel Money transaction value per customer per month

Calculated by dividing the total mobile money transaction value on the Group’s mobile money platform during the relevant period by the average number of active mobile money customers and dividing the result by the number of months in the relevant period.

Airtime credit service

A value-added service where the customer can take an airtime credit and continue to use our voice and data services, with the credit recovered through subsequent customer recharge. This is classified as a Mobile Services product (not a Mobile Money product).

ARPU

Average revenue per user per month. This is derived by dividing total revenue during the relevant period by the average number of customers during the period and dividing the result by the number of months in the relevant period.

Average customers

The average number of active customers for a period. Derived from the monthly averages during the relevant period. Monthly averages are calculated using the number of active customers at the beginning and the end of each month.

Capital expenditure

An alternative performance measure (non-GAAP). Defined as investment in gross fixed assets (both tangible and intangible but excluding spectrum and licences) plus capital work in progress (CWIP), excluding provisions on CWIP for the period.

Constant currency

The Group has presented certain financial information that is calculated by translating the results at a fixed ‘constant currency’ exchange rate, which is done to measure the organic performance of the Group and represents the performance of the business in a better way. Constant currency amounts and growth rates are calculated using closing exchange rates as of 31 March 2024 for all reporting regions and service segments.

Customer

Defined as a unique active subscriber with a unique mobile telephone number who has used any of Airtel’s services in the last 30 days.

Customer base

The total number of active subscribers that have used any of our services (voice calls, SMS, data usage or mobile money transaction) in the last 30 days.

Data ARPU

Data average revenue per user per month. Data ARPU is derived by dividing total data revenue during the relevant period by the average number of data customers and dividing the result by the number of months in the relevant period.

Data customer base

The total number of subscribers who have consumed at least 1 MB on the Group’s GPRS, 3G or 4G network in the last 30 days.

Data customer penetration

The proportion of customers using data services. Calculated by dividing the data customer base by the total customer base.

Data usage per customer per month

Calculated by dividing the total MBs consumed on the Group’s network during the relevant period by the average data customer base over the same period and dividing the result by the number of months in the relevant period.

Digitalisation

We use the term digitalisation in its broadest sense to encompass both digitisation actions and processes that convert analogue information into a digital form and thereby bring customers into the digital environment, and the broader digitalisation processes of controlling, connecting and planning processes digitally; the processes that effect digital transformation of our business, and of industry, economics and society as a whole through bringing about new business models, socio-economic structures and organisational patterns.

Diluted earnings per share

Diluted EPS is calculated by adjusting the profit for the year attributable to the shareholders and the weighted average number of shares considered for deriving basic EPS, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares actually been issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period.

Earnings per share (EPS)

EPS is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.

Foreign exchange rate movements for non-DTA operating companies and holding companies

Foreign exchange rate movements are specific items that are non-tax deductible in a few of our operating entities, hence these hinder a like-for-like comparison of the Group’s effective tax rate on a period-to-period basis and are therefore excluded when calculating the effective tax rate.

Indefeasible Rights of Use (IRU)

A standard long-term leasehold contractual agreement that confers upon the holder the exclusive right to use a portion of the capacity of a fibre route for a stated period.

Information and communication technologies (ICT)

ICT refers to all communication technologies, including the internet, wireless networks, cell phones, computers, software, middleware, videoconferencing, social networking, and other media applications and services.

Interconnect usage charges (IUC)

Interconnect usage charges are the charges paid to the telecom operator on whose network a call is terminated.

Lease liability

Lease liability represents the present value of future lease payment obligations.

Leverage

An alternative performance measure (non-GAAP). Leverage (or leverage ratio) is calculated by dividing net debt at the end of the relevant period by the underlying EBITDA for the preceding 12 months.

Market Debt

Market debt is defined as Borrowings from Banks or Financial Institutions and debt capital market issuances in the form of Bonds.

Minutes of usage

Minutes of usage refer to the duration in minutes for which customers use the Group’s network for making and receiving voice calls. It includes all incoming and outgoing call minutes, including roaming calls.

Mobile services

Mobile services are our core telecom services, mainly voice and data services, but also including revenue from tower operation services provided by the Group and excluding mobile money services.

Net debt

An alternative performance measure (non-GAAP). The Group defines net debt as borrowings including lease liabilities less cash and cash equivalents, term deposits with banks, processing costs related to borrowings and fair value hedge adjustments.

Net debt to underlying EBITDA (LTM)

An alternative performance measure (non-GAAP) Calculated by dividing net debt as at the end of the relevant period by underlying EBITDA for the preceding 12 months (from the end of the relevant period). This is also referred to as the leverage ratio.

Lease-adjusted Net Debt

An alternative performance measure (non-GAAP). The Group defines Lease-adjusted net debt as borrowings excluding lease liabilities less cash and cash equivalents, term deposits with banks, processing costs related to borrowings and fair value hedge adjustments.

Lease adjusted leverage (LTM)

An alternative performance measure (non-GAAP) Calculated by dividing Lease-adjusted net debt as at the end of the relevant period by Lease-adjusted underlying EBITDA (EBITDAaL) for the preceding 12 months (from the end of the relevant period).

Net monetary gain relating to hyperinflationary accounting

Net monetary gain relating to hyperinflationary accounting is computed as difference resulting from the restatement of non-monetary net assets, equity and items in the statement of comprehensive income due to application of IAS 29 hyperinflationary accounting.

Network towers or ‘sites’

Physical network infrastructure comprising a base transmission system (BTS) which holds the radio transceivers (TRXs) that define a cell and coordinates the radio link protocols with the mobile device. It includes all ground-based, roof top and in-building solutions.

Operating company (OpCo)

Operating company (or OpCo) is a defined corporate business unit, providing telecoms services and mobile money services in the Group’s footprint.

Operating free cash flow

An alternative performance measure (non-GAAP). Calculated by subtracting capital expenditure from underlying EBITDA.

Operating profit

Operating profit is a GAAP measure of profitability. Calculated as revenue less operating expenditure (including depreciation and amortisation and operating exceptional items).

Other revenue

Other revenue includes revenues from messaging, value added services (VAS), enterprise, site sharing and handset sale revenue.

Reported currency

Our reported currency is US dollars. Accordingly, actual periodic exchange rates are used to translate the local currency financial statements of OpCos into US dollars. Under reported currency the assets and liabilities are translated into US dollars at the exchange rates prevailing at the reporting date whereas the statements of profit and loss are translated into US dollars at monthly average exchange rates.

Smartphone

A smartphone is defined as a mobile phone with an interactive touch screen that allows the user to access the internet and additional data applications, providing additional functionality to that of a basic feature phone which is used only for making voice calls and sending and receiving text messages.

Smartphone penetration

Calculated by dividing the number of smartphone devices in use by the total number of customers.

Total MBs on network

Includes total MBs consumed (uploaded and downloaded) on the network during the relevant period.

EBIT

Defined as operating profit/(loss) for the period adjusted for exceptional items.

Underlying EBITDA

An alternative performance measure (non-GAAP). Defined as operating profit before depreciation, amortisation and exceptional items.

Underlying EBITDA margin

An alternative performance measure (non-GAAP). Calculated by dividing underlying EBITDA for the relevant period by revenue for the relevant period.

Lease-adjusted underlying EBITDA (EBITDAaL)

An alternative performance measure (non-GAAP). Defined as operating profit before depreciation, amortisation and exceptional items, interest on lease liabilities and repayment of lease liabilities due during the relevant period

Unstructured Supplementary Service Data

Unstructured Supplementary Service Data (USSD), also known as "quick codes" or "feature codes", is a communications protocol for GSM mobile operators, similar to SMS messaging. It has a variety of uses such as WAP browsing, prepaid callback services, mobile-money services, location-based content services, menu-based information services, and for configuring phones on the network.

Voice minutes of usage per customer per month

Calculated by dividing the total number of voice minutes of usage on the Group’s network during the relevant period by the average number of customers and dividing the result by the number of months in the relevant period.