Airtel Nigeria’s revenue drops by 40.3% as regional profit surges

Airtel Nigeria’s revenue fell by 40.34 per cent to $738 million in the nine months ended December 2024 from $1.24 billion in the corresponding period of 2023, despite growth in the demand for data services, according to a financial report released by the regional body.

Airtel blamed the decline on the devaluation of the naira, which fell by over 40 per cent in 2024.

Outside of the naira’s devaluation, Airtel Nigeria noted that its revenue in constant currency grew by 35 per cent and average revenue per user grew to 31.9 per cent.

Meanwhile, Airtel Africa’s profit after tax grew by 12,300 per cent to $248 million in the nine months ending December 2024 from $2 million in the corresponding period of 2023, despite a 5.78 per cent decline in revenue to $3.64 billion from $3.86 billion.

Airtel, which grew its customer base by 7.9 per cent to 163.1 million, noted that its revenue decline was due to currency devaluations in Nigeria, Malawi and Zambia. “In particular, the Nigerian naira devalued from a weighted average NGN/USD rate of 677 in the prior nine-month period to NGN/USD 1,532 in the current period,” it said.

Revenues in constant currency grew by 20.4 per cent, and profit after tax was $248 million, benefitting from an exceptional gain of $94m (net of tax) following the naira and Tanzanian shilling appreciation.

“However, over the nine months ending 31 December 2024, profit after tax of $248 million was impacted by $57 million of exceptional derivative and foreign exchange losses (net of tax),” it noted.

Commenting, Chief Executive Officer of Airtel Africa, Sunil Taldar, expressed growth optimism, after a turbulent 2024, highlighting the recent tariff hike in Nigeria and currency stabilisation across its operating markets.

“The recent signs of currency stabilisation in some markets and the recent decision from the Nigerian Communications Commission (NCC) regarding tariff adjustments in Nigeria are encouraging and signal a more stable and supportive operating environment. While challenges remain, these developments provide a firm foundation for growth and improved market conditions,” he said.

Further, Airtel Africa said Nigeria is a market with enormous potential for future growth in telecommunications services, with a vibrant economy and youthful population that will continue to benefit from its investment ambitions.

The firm said the tariff adjustments reflect a balanced approach to ensuring the sustainability of the telecommunications sector while safeguarding the interests of consumers. The adjustments will support the continued growth of the industry and will enable us to continue investing in network infrastructure, expanding coverage and delivering improved products and services that meet the evolving needs of our customers.

Further analysis showed that across the Group, mobile services revenue grew by 18.8 per cent in constant currency, driven by voice revenue growth of 9.8 per cent and data revenue growth of 29.5 per cent. Mobile money revenue grew by 29.6 per cent in constant currency. EBITDA for the nine months declined by 11.9 per cent in reported currency to $1.681 billion with EBITDA margins of 46.2 per cent impacted by increased fuel prices and the lower contribution of Nigeria to the Group.