Airtel Africa Makes $3.86 Billion Revenue as Subscribers Base Hit 151.2 Million

Airtel Africa has recorded a revenue of $3.861 billion in its results for nine-month period ended December 31, 2023.

Although, the telco recorded total customer base growth of 9.1 per cent to 151.2 million, its revenue for the period represents a 1.4% year-on-year decline from the $3.914 billion posted in the corresponding period in the previous fiscal year.

The company’s results released on the Nigerian Exchange showed that penetration of mobile data and mobile money services continued to rise, driving a 22.4 per cent increase in data customers to 62.7 million and a 19.5 per cent increase in mobile money customers to 37.5 million.

On its financial performance, revenue in constant currency grew by 20.2 per cent, with Q3, 2023 growth accelerating to 21.0 per cent. In Q3, 2024, reported currency revenues declined by 8.3 per cent as currency devaluation (primarily the Nigerian naira devaluation) continued to impact reported revenue trends.

The group also reported an operating profit of $1.293 billion in 9M 2024, down by 1.9% from the $1.318 billion reported in 9M 2023.

The group posted a profit after tax of $2 million in nine month 2024, reflecting a 99.6% year-on-year decline from the $523 million posted in the corresponding period of the previous fiscal year.

The decline in the company’s profit profile is attributable to the total finance cost of $1.238 billion which the company accrued in 9M 2024. Notably, $748 million of this total cost was due to the Naira devaluation from N461/$ in June 2023 to $952/$ in December 2023.

All segments continued to deliver double-digit constant currency growth. Across the Group mobile services revenue grew by 18.6 per cent in constant currency, driven by voice revenue growth of 11.2 per cent and data revenue growth of 28.5 per cent . Mobile money revenue grew by 31.8 per cent in constant currency.

Profit after tax was $2 million in the period, primarily impacted by significant foreign exchange headwinds, particularly the $330 million exceptional loss after tax following the devaluation of the Nigerian naira in June 2023 and the Malawian kwacha in November 2023 after the structural changes in their respective FX markets.

The Nigerian naira devalued further in Q3, 2023, resulting in a $140 million derivative and foreign exchange losses net of tax, which is not treated as an exceptional item.