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Soldiers appear on state TV in Niger, say President Bazoum has been removed and the borders are closed. AAF is the market leader in Niger.
I suspect results will be dire .. Balance sheet ( debt) will be valued at current exchange rate , causing huge currency loss in quarter ... bad news out of way once that initial revaluation happens, debased and set for growth, but suspect the initial results shock will hit SP badly
Devalue your currency and inflate your way out of trouble? Isn't that what Italy did with the Lira in the 80's? Is the Naira the new Lira?
If uncertainty over exchange rates were the main issue, people would surely be buying, because any uncertainty has been eliminated? The time to sell would have been before the devaluation, not after? The naira is now probably close to true market rates rather than some contorted artificial value - it is likely to continue to devalue, as it always has, but relatively slowly. As the company itself has said, this policy of realistic, unified exchange rates is ultimately good for business. It is arguably good for the Nigerian economy generally, despite the short term pain, because it is highly likely to attract foreign investment to Nigeria, boosting confidence, jobs, spending and tax revenue, and maybe infrastructure too - particularly in the oil sector. IF this happens, the short term reduction in the value of revenue (in dollar terms) should be more than offset by an increase in the speed of growth? There are other factors at play here, but selling due to a currency correction seems muddleheaded? Don't invest in Africa expecting stability or consistency from governments!
I have sold,as far too much uncertainty regarding currencies .
"The company said a 1% devaluation of the naira would hit its revenue by USD22 million"
So the approx. 40% devaluation over the past month has wiped about $880m of revenue.
Last year revenue was $5,260m, so devaluation equates to about 16.7% of revenue so far.
Hopefully the devaluation and other measures will bring stability going forward, and sustained growth from a lower base?
Thanks for keeping a close eye.
I have sold which is a real shame as I like the company but the politics and currency are having to much of a detrimental effect on the SP. Good luck all and thanks again for keeping me informed.
Downgraded by Barclays
Does Tinubu have a heart of darkness, or one dancing to an Afrobeat?
Short term, he's been a pain in the Naira
I meant 15% since they put out the RNS. In the last week the Nigerian currency is down over 43%
I believe Naira had moved from a range of 400 to 600. This is more than 15% for sure.
Since the currency RNS the Naira has fallen more than 15%. This should have a big impact on AAF.
One would think Airtel are aware of whether this currency issue will continually erode value.
That was a quick rise and dump, this share does seem to get easily manipulated.
I meant £8k!!
Up £8 since April and we still have the climb to ex dividend date at the end of June...one of my better investments...Vod/BT/Nokia/Spirent not so!!!!...that's what they call hedging your bets!
A nice Analysis of Airtel Africa: https://www.youtube.com/watch?v=lIRNiHkhrrQ
It can happen every year. We are talking about Africa after all.
Rho losses are due to currency devaluation against $ for most African countries and hence reduced profit. This can't happen every quarter /year. So I expect very high bottom line from next quarter. Hold-on tight
Bharti Airtel’s Africa business reported a net profit of $227 million in the fiscal fourth quarter, down 6% on year......yet Airtel Africa’s net profit, though, was 17.6% higher sequentially in January-March....and we get hit by 8%.....came back a little but surprised...holding for the dividend....!!
Just keep adding. It's. still growing spectacularly. AAF can't control African currencies get devalued. These events doesn't happen every quarter.
Good to climb aboard when SP is this low.
I wouldn't be surprised if it delists next having got as much investment from the UK as was ever likely.
Aaf share price has increased over the last couple of years because of spectacular growth across the board. unfortunately when you lose the spectacular in the real world, then on the stock market they will hang you. though i agree the business is on an excellent solid footing, it will take the stock market a little while to accept this....
Good set of results, nothing to mourn about. The matrics that matters the most is growth customer base and mobile money growth. Whilst the derivative loss is material it is short term in nature and i don't expect that to perpetuate.
Dec 2021 – "It is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years."
See RNS, Chimera Investment LLC invests $50m in Airtel Africa's mobile money business