Airtel Africa has reported a staggering 12,300% increase in profit after tax, reaching $248 million for the nine months ending December 2024, a significant surge from just $2 million in the same period of 2023. This growth comes despite a 5.78% decline in revenue, which fell to $3.64 billion from $3.86 billion.
The telecom giant attributed the revenue decline to currency devaluations in key markets, including Nigeria, Malawi, and Zambia. In particular, the Nigerian naira depreciated sharply, moving from an average exchange rate of NGN/USD 677 in the previous year to NGN/USD 1,532 in the current period.
However, in constant currency terms, Airtel Africa’s revenue rose by 20.4%, with profit after tax benefitting from a $94 million exceptional gain (net of tax) due to the appreciation of the naira and the Tanzanian shilling. The company also noted that its overall profit was impacted by $57 million in derivative and foreign exchange losses.
Airtel’s Nigerian operations suffered a significant setback, with revenue plunging by 40.34% to $738 million from $1.24 billion, largely due to the naira’s steep devaluation. Despite this, the company reported a 35% increase in revenue in constant currency and a 31.9% rise in average revenue per user, driven by growing demand for data services.
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Following a challenging 2024, Airtel Africa’s CEO, Sunil Taldar, expressed optimism for future growth, citing the recent tariff hike approved by the Nigerian Communications Commission (NCC) and signs of currency stabilisation across the company’s markets.
“The recent signs of currency stabilisation in some markets and the decision from the 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,” Taldar stated.
