Airtel Africa reported a revenue drop to $2.37 billion for the half-year ending September 30, 2024, largely due to the sharp depreciation of the Nigerian naira. Although the company experienced a 19.9% increase in revenue when measured in constant currency, its reported revenue fell by 9.7% as the weakened naira negatively impacted earnings.
The decline is attributed in part to the Central Bank of Nigeria’s (CBN) 2023 decision to unify the foreign exchange rate, which caused the naira to plummet from N471 per dollar to N1,601.20 by October 2024. Rising fuel prices across Airtel’s operating regions and reduced revenue from Nigeria following the currency devaluation also contributed to a decline in EBITDA margins, which fell from 49.6% in H1 2024 to 45.8%.
Airtel Africa’s profit after tax stood at $79 million, adversely affected by $151 million in derivative and foreign exchange losses, primarily stemming from the naira’s depreciation.
Despite these financial challenges, Airtel Africa’s customer base grew by 6.1%, reaching 156.6 million, with data consumption per customer increasing by 30.9% to 6.6 GB. Smartphone penetration also rose by 5.3%, hitting 42.9%.
CEO Sunil Taldar 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.”
