Airtel Africa Recorded $1,156m Revenue Loss, 155.4m Customer Growth in Q2

Emma Okonji

Airtel Africa, provider of telecommunications and mobile money services across 14 African countries, Nigeria inclusive, yesterday, released its second quarter result for 2024, recording 155.4 million subscribers and 64.4 million data customers, with revenues decline of $1,156 million. 

According to the result for the quarter ended 30 June 2024, strong fundamentals and focused execution continue to support operating performance despite challenging macro-economic environment. 

Highlight of the report shows that the total customer base grew by 8.6 per cent to 155.4 million. Data customer penetration increased, driving a 13.4 per cent increase in data customers to 64.4 million. Data usage per customer increased by 25.1 per cent to 6.2 GBs, with smartphone penetration increasing 4.7 per cent to reach 41.7 per cent. 

There was increase in mobile money subscription and the transaction value increased by 28.7 per cent in constant currency with annualised transaction value of $120 billion in reported currency.

Data ARPU growth of 9.6 per cent and mobile money ARPU growth of 8.8 per cent in constant currency continued to support overall ARPU’s which increased 9.3 per cent YoY, according to the report 

The report further said the reported currency revenues declined by 16.1 per cent to $1,156 million reflecting the impact of currency devaluation, particularly in Nigeria.

Across the Group mobile services revenue grew by 17.4 per cent and mobile money revenue grew by 28.4 per cent in constant currency. 

“A substantial increase in fuel prices across our markets and the lower contribution of Nigeria to the Group after the naira devaluation contributed to a decline in EBITDA margins to 45.3 per cent from 49.5 per cent in Q1’24 and 46.5 per cenr in Q4’24,” the report said. 

However, constant currency EBITDA increased 11.3 per cent whilst reported currency EBITDA declined by 23.3 per cent to $523 million.

Profit after tax of $31 million was impacted by $80ml million of exceptional derivative and foreign exchange losses (net of tax), arising from the further depreciation in the Nigerian naira during the quarter. 

Analysing the report, the Chief Executive Officer, Sunil Taldar, said: “The continued revenue growth momentum once again reflects the resilient demand for our services, with sustained growth in our customer base and usage. Our superior execution enables us to capture these opportunities, whilst retaining our reputation as a cost leader across the industry.

“Having visited most of our OpCos since I joined Airtel Africa, I am encouraged by the scale of the opportunity available across our markets in both the GSM and mobile money business. A key priority for us is to look for new opportunities to further grow our business especially in the enterprise, fibre and data centre businesses across our footprint in Africa.”

According to him,” We will build on the strong foundation established over many years to deliver on these new business opportunities. Most importantly, our emphasis is on significantly improving customer experience by simplifying customer journeys and providing best in class network experience to our customers, whilst remaining focused on driving efficiencies across the business.”

We have initiated a comprehensive cost optimisation programme across the Group. We have already seen success in this project, with savings arising in network and distribution costs, and continued opportunities as contract renegotiations continue. We expect sustainable savings to continue as the year progresses, Taldar further said. 

ENDS