An examination of MTN Nigeria Communications Plc and Airtel Nigeria’s financial statements revealed that in the first half of 2024, their combined revenue from voice and data services was around N3.67 trillion.
With more than 60 million users, Airtel brought in approximately $229 million during the quarter that concluded on June 30, 2024. $112 million and $117 million, respectively, come from voice and data services in this income.
Voice revenue climbed by 21.6% in constant currency terms despite a notable 55.8% fall from $254 million in the same quarter the previous year, according to the company’s financial report. In addition, data revenue fell by 48.6% from $228 million to $209 million in the prior year; nonetheless, growth of 41.3% in constant currency was strong, suggesting that demand for internet services was increasing.
According to an examination of the report accessed by BrandSpur telecom and IT news, Airtel made $711 million in voice income and $654 million in data revenue for the entire year that ended on March 31, 2024, for a total revenue of $1.594 billion for the two periods. Using the conversion rate of N1500/$1, the operator generated N2.4tn in six months when converting the total revenue generated by Airtel Nigeria into naira.
With about 80 million users, MTN is the largest telecom provider in the nation. During the first half of 2024, the company generated a total income of N1.27 trillion, primarily from an increase in data services. Data services contributed N726.6 billion to the revenue, up 55% from N469.7 billion during the same time in 2023. Revenue from voice services increased as well, rising from N474.1 billion to N541.3 billion annually.
The operator, which has been providing services to Nigeria’s sizable population for 20 years, ascribed this expansion to improvements in the quality of its offerings and the strong demand for data services. The adoption of price optimisation techniques in Q4 2023 contributed to this expansion even more.
According to the combined income estimates for the two firms, Airtel brought in N2.4 trillion, while MTN brought in N1.27 trillion. This means that throughout the six months, the combined revenue from data and voice services was almost N3.67 trillion.
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The pair is deftly manoeuvring through a constantly changing telecom environment, profiting from the rising demand for digital services in Nigeria’s burgeoning digital economy. The enterprises do, however, confront formidable obstacles, chiefly brought about by the naira’s depreciation of the US dollar, which has adversely affected operating expenses.
A sizeable amount of the earnings of MTN Nigeria and Airtel Africa, both listed on the Nigerian Stock Exchange, are allocated to fuel use.
Industry insiders calculate that telecom companies use more than 50 million litres of diesel per month to power their infrastructure. Telecom businesses are now focussing more on renewable energy sources, including solar, wind, and lithium batteries, in response to these growing prices.
In Lagos last month, Femi Adeniran, Director of Corporate Communications and CSR at Airtel Nigeria, revealed that the firm spends about N28 billion on diesel each month.
According to a senior telecom executive who wished to remain anonymous, MTN, which has over 80 million users, spends more than N30 billion a month on diesel to power its about 25,000 base stations. Due to rising fuel prices—diesel prices are averaging N1,426.09 per liter—MTN and Airtel spent a combined N570 billion in the first eight months of 2024 (January to August).
MTN reported a $519.1 billion after-tax loss for the first half of 2024, while Airtel reported a $89 million loss for the fiscal year that ended in March 2024. Nevertheless, in the second quarter, Airtel turned a $31 million profit even though it suffered $80 million in foreign exchange and derivative losses.
