Airtel Africa Plc has announced a profit after tax of $31 million for the quarter ending June 30, 2024, showcasing resilience amidst foreign exchange difficulties.
Despite facing significant derivative and foreign exchange losses totaling $80 million, primarily due to the depreciation of the Nigerian naira, Airtel Africa’s robust fundamentals and strategic approach helped offset some of the impact.
The report obtained by The PUNCH noted that the profit after tax of $31 million was affected by the $80 million in exceptional derivative and foreign exchange losses (net of tax) due to further naira depreciation during the quarter.
The telecom company reported a 19% increase in revenue in constant currency for the quarter, driven by strong performances in Nigeria and East Africa. Revenue in Nigeria rose by 33.4%, while East Africa saw a 22.3% increase.
However, revenue from Nigerian operations fell by 16.1% to $1.16 million due to currency devaluation. Mobile services revenue grew by 17.4%, and mobile money revenue increased by 28.4%.
Despite the revenue growth, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins decreased to 45.3% from 49.5% in Q1’24 and 46.5% in Q4’24, attributed to higher fuel prices and the reduced contribution from Nigeria following the naira’s devaluation.
Airtel Africa CEO Sunil Taldar commented, “The ongoing revenue growth reflects the strong demand for our services, with continued expansion in our customer base and usage. Our effective execution allows us to capitalize on these opportunities while maintaining our position as a cost leader in the industry.”
Taldar emphasized the company’s focus on superior execution, cost leadership, and growth potential in enterprise, fibre, and data center sectors across Africa. He also highlighted efforts to enhance customer experience through simplified journeys and top-notch network performance.
He further announced a comprehensive cost optimization program that has already achieved savings in network and distribution costs. “We will continue to build on the solid foundation we’ve established over the years to seize new business opportunities, with a strong focus on improving customer experience and driving efficiencies across the business,” Taldar said.
