Due in significant part to the sharp depreciation of the Nigerian naira, Airtel Africa reported a drop in revenue to $2.37 billion for the half-year ending September 30, 2024.
The lower naira hurt earnings, causing reported revenue to drop by 9.7% even though constant currency revenue increased by 19.9%. The naira fell from N471/$ to N1,601.20 by October 2024 as a result of the currency’s depreciation, which came after the Central Bank of Nigeria (CBN) decided in 2023 to unify the exchange rate.
According to the company’s financial report available to BrandSpur business and economy news desk, EBITDA margins decreased from 49.6 percent in the first half of 2024 to 45.8 percent as a result of higher fuel prices throughout its territories and decreased revenue contributions from Nigeria.
Additionally, Airtel Africa’s profit after tax fell to $79 million as a result of $151 million in foreign exchange and derivative losses (net of tax) brought on by the naira’s continued devaluation.
Airtel Africa’s user base increased by 6.1 percent to 156.6 million, despite its revenue difficulties, while its data consumption per customer increased by 30.9 percent to 6.6 GB. The percentage of people using smartphones increased by 5.3% to 42.9 percent.
Sunil Taldar, the CEO, emphasised Sub-Saharan Africa’s economic potential by saying: “A young and fast-growing population, combined with low SIM and banking penetration and rising adoption of smartphones and digital payments, creates a unique opportunity to leverage our extensive infrastructure for sustainable growth.”
