Bharti Airtel s subsidiary Airtel Kenya has signed an agreement with Telkom Kenya to merge their respective mobile, enterprise and carrier services businesses in Kenya and will operate as a combined entity named Airtel- Telkom .
The combined entity will become a strong No. 2 operator in terms of both revenues and subscribers in Kenya with a 31% customer market share.
As per the agreement, both the partners will combine their operations in Kenya and establish an entity with enhanced scale, operational efficiency and strategic brand presence, Bharti Airtel said in a statement. The finalisation and closure of the transaction is subject to approval by the relevant authorities. The entity will invest in networks to further accelerate roll out of future technologies. The Enterprise and Carrier Services businesses should benefit from a larger fibre footprint and an increased number of enterprise customers including both large corporations and SMEs who would have access to a diverse portfolio of world-class solutions, the statement added.
Financial performance of Airtel Africa continues to improve after turning positive in terms of net profit and operating free cash flow over the last several quarters. For the third quarter ending December 31, 2018, Airtel Africa s revenue grew by 11.2% on a year-on-year basis. Consequently, EBITDA margin has expanded by 1.7% Y-o-Y and stood at 37.2% for the quarter.