Airtel Africa’s Revenue Drops As Naira Depreciates In Value

Airtel Africa reported a revenue decline to $2.37 billion for the half-year period ending September 30, 2024, primarily attributed to the significant depreciation of the Nigerian naira.

Although revenue in constant currency experienced a 19.9 percent increase, the reported revenue decreased by 9.7 percent due to the adverse effects of the weakened naira on the company’s earnings.

The Central Bank of Nigeria’s (CBN) 2023 decision to unify the foreign exchange rate led to a dramatic fall in the naira’s value, plummeting from ₦471/$ to ₦1,601.20 by October 2024.

The financial report for this period also indicated that escalating fuel prices in its operational regions and a reduced revenue contribution from Nigeria following the devaluation resulted in a decline in EBITDA margins from 49.6 percent in H1 2024 to 45.8 percent.

Airtel Africa’s profit after tax stood at $79 million, adversely impacted by $151 million in derivative and foreign exchange losses (net of tax), largely due to the further depreciation of the naira.

During this timeframe, Airtel Africa’s customer base expanded by 6.1 percent, reaching 156.6 million, while data consumption per customer surged by 30.9 percent to 6.6 GB. Additionally, smartphone penetration increased by 5.3 percent, achieving a level of 42.9 percent.

Sunil Taldar, the chief executive officer of Airtel Africa, highlighted the growth potential in Sub-Saharan Africa, stating, “A young and fast-growing population, combined with low SIM and banking penetration and a rising adoption of smartphones and digital payments, creates a unique opportunity to leverage our extensive infrastructure for sustainable growth.”