Airtel Africa Grows Customer Base By 9.1% To 151.2m

Airtel Africa recorded total customer base growth of 9.1 per cent to 151.2 million in its results for nine-month period ended December 31, 2023.

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. Reported currency revenues declined by 1.4 per cent to $3,861 million. 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.

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 11.2nper 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.

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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.

EPS before exceptional items was 7.1 cents, a decline of 34.6 per cent.

The Group chief executive officer of Airtel Africa, Olusegun Ogunsanya said: “we remain focussed on the execution of our growth strategy and, combined with our strong operational execution, this has ensured that we continue to see sustained, positive growth momentum across the business, despite the inflationary and currency headwinds.

“Demand remains resilient, highlighting the vital nature of the voice, data and mobile money services we provide to our customers across the region, and has resulted in a strong 20.2 per cent constant currency revenue growth over the period, with an increase in EBITDA margins.”

According to Ogunsanya, “We continue to be well positioned to deliver on the attractive growth opportunities our markets offer and despite the challenge of rising diesel prices, ongoing currency devaluation and inflationary pressures across some of our markets, we remain focussed on margin resilience.”