Naira devaluation cuts Airtel Africa revenue to $2.37B — Business — The Guardian Nigeria News – Nigeria and World News

Airtel Africa has reported a decline in revenue to $2.37 billion for the half-year ending September 30, 2024, largely due to the steep depreciation of the Nigerian naira.

Despite a 19.9 percent increase in constant currency revenue, reported revenue fell by 9.7 percent as the weaker naira impacted earnings. The currency’s devaluation followed the Central Bank of Nigeria’s (CBN) 2023 decision to unify the exchange rate, leading to the naira’s plunge from N471/$ to N1,601.20 by October 2024.

The company’s financial report revealed that rising fuel prices across its regions, along with lower revenue contributions from Nigeria, contributed to a decline in EBITDA margins from 49.6 percent in the first half of 2024 to 45.8 percent.

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Airtel Africa also faced a hit to its profit after tax, which dropped to $79 million, affected by $151 million in derivative and foreign exchange losses (net of tax) due to further depreciation of the naira.

In contrast to its revenue challenges, Airtel Africa’s customer base grew by 6.1 percent to 156.6 million, with data consumption per customer increasing by 30.9 percent to 6.6 GB. Smartphone penetration rose by 5.3 percent, reaching 42.9 percent.

CEO Sunil Taldar stressed the potential for growth across 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.”

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