Currency Devaluation Cuts Airtel Africa’s Revenue To $2.37bn In H1 2024

Airtel Africa’s revenue declined to $2.37 billion in the half-year ending September 30, 2024, due to the sharp depreciation of the Nigerian naira.

Despite a 19.9 per cent increase in revenue in constant currency, reported revenue fell by 9.7 per cent, as the weakened naira impacted the company’s earnings.

The Central Bank of Nigeria’s (CBN) decision to unify the foreign exchange rate in 2023 contributed to the naira’s significant drop from N471/$ to N1,601.20 by October 2024.

The company’s financial report for this period also highlighted how rising fuel prices across its operating regions, combined with a lower revenue contribution from Nigeria post-devaluation, drove a decline in EBITDA margins from 49.6 per cent in H1 2024 to 45.8 per cent.

Airtel Africa’s profit after tax of $79 million was affected by $151 million in derivative and foreign exchange losses (net of tax), primarily due to the naira’s further depreciation.

During this period, Airtel Africa’s customer base grew by 6.1 percent to 156.6 million, with data consumption per customer rising by 30.9 per cent to 6.6 GB. Smartphone penetration also increased by 5.3 per cent, reaching 42.9 per cent.

The chief executive officer of Airtel Africa, Sunil Taldar noted the potential for growth in Sub-Saharan Africa, emphasising, “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.”