Airtel Shareholders Earn N3.6 Trillion Year-to-Date on Positive Sentiment
Positive sentiment on shares of Airtel Africa Plc since the start of the year has led investors of the company to make a profit of approximately N3.571 trillion at the close of trading on July 18.
Airtel Africa started the year with a share price of 955.00 NGN and has since gained 99.5% on that price valuation, ranking ninth on the NGX in terms of performance to date.
Market sentiment for the segment made up of two telecom companies – MTN Nigeria Plc and Airtel Africa Plc has remained resilient in the face of the pandemic.
Checks by Nairametrics showed that Airtel closed its last trading day (Monday, July 18, 2022) at N1.905 trillion per share and N7.160 trillion in market cap on the Nigerian Stock Exchange (NGX) versus N955 per share and N3.589 trillion in market cap at the start of trading in January 2022, thus has made a profit of N3.571 trillion or 99.5% so far.
Telecom companies are currently taking advantage of remote working, which most companies have adopted after the COVID-19 pandemic to gain profits from data plans and voice calls.
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Many employees use the Internet for online education, telecommuting, gaming and entertainment, and the Internet traffic recorded by the Internet exchange point has increased.
Internet traffic had increased as many companies introduced a work-from-home policy a week before the government-imposed lockdown policy.
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What the analysts say
Financial analysts at CardinalStone Partners Limited have said the unstoppable trends of remote working, enabled by telecom, continue to change the world around us. The analysts said in their 2022 Mid-Year Outlook themed ‘Same Challenges, New Shocks’: “We see a compelling case for portfolio exposure to the data-inspired telecom stocks, which have seen average earnings growth of 42.8% YoY over the last eight quarters.During this period, the internet and mobile services continue to lead to change in communication patterns between citizens and businesses.It has also led to innovations in payment systems developed by existing and new FinTechs and telecom operators.In our view, the demographics of Nigeria (i.e. the high proportion of the youth population) are likely to continue to lead to an increase in the adoption rate of data-enabled devices and digital offerings”.
What you should know
Airtel Africa Plc is a limited company incorporated on 12 July 2018 as a private limited company in the United Kingdom and re-registered as a limited company on 13 June 2019, with its registered office in England and Wales. Airtel is a leading provider of telecommunications and mobile money services with a presence in 14 African countries, primarily in East, Central and West Africa. The company has been listed on the Nigerian Stock Exchange (NGX) since 9 July 2019. Airtel Africa is the 96th most traded stock on the Nigerian Stock Exchange in the past three months (April 12 – July 18, 2022). It has a total volume of 7.65 million shares traded in 2,304 deals – worth NGN 12.4 billion over the period, with an average of 121,433 shares traded per session. For the same period, a volume of 1.39 million was reached on May 27 and a low of 31 on April 13.