Airtel Africa’s profit surges 123-fold to $248 million

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

It 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.

Read also: FG eyes technology to boost oil revenue, Edun says

Revenues in constant currency grew by 20.4 percent, 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-month period 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.

Its Nigerian arm’s revenue fell by 40.34 percent 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. The telco blamed this decline on the devaluation of the naira, which fell by over 40 percent in 2024.

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

After a turbulent 2024, Sunil Taldar, chief executive officer of Airtel Africa, expressed growth optimism, highlighting the recent tariff hike in Nigeria and currency stabilisation across its operating markets.

Read also: NCC’s 50% tariff hike to create 2m jobs, N1.6trn in tax revenue

“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.