Airtel Africa revenue plunges 112% on forex devaluation regardless of subscriber development

Airtel Africa revenue plunges 112% on forex devaluation regardless of subscriber development

Airtel Africa, a telecommunications agency with a presence in 14 African nations, has seen its income dip 5.3% to $4.9 billion, hit by vital forex devaluations in Nigeria, Malawi, Zambia, and Kenya, based on the corporate’s monetary statements for the yr ended March 31, 2024. These headwinds additionally contributed to an $89 million loss after tax, a 111.9% dip from a $750 million revenue recorded on the finish of final yr.

Regardless of profitability challenges, the telecom big grew its total buyer base by 9% to achieve 152.7 million. This optimistic efficiency comes regardless of difficult macroeconomic circumstances that impacted profitability for many of the monetary yr.

Airtel Africa acknowledged the damaging affect of forex fluctuations on enterprise development throughout the continent. Final quarter, the telco’s income plunged by almost 99%—recording $2 million in income in contrast with the $523 million it made in 2022—resulting from forex devaluation.

The corporate is actively decreasing its US greenback debt burden and accumulating money reserves on the holding firm degree to cowl excellent obligations.

Key takeaways:

  • Airtel Africa reported income of $4.9 billion for the yr ended 31 March 2024
  • It misplaced $89 million in income, down 111.9% 
  • Cellular cash prospects grew 20% to 38 million

“We are going to proceed to concentrate on decreasing our publicity to forex volatility. Originally of March, we launched our first buyback programme reflecting the power of our monetary place,” stated Olusegun Ogunsanya, Airtel’s CEO, who is anticipated to retire subsequent month.

“The expansion alternative that exists throughout our markets stays compelling, and we’re nicely positioned to ship in opposition to this chance. We are going to proceed to concentrate on margin enchancment from the current degree as we progress by means of the yr.”

The telco’s monetary assertion additionally reported that its group cellular companies income grew by 19.4%, pushed by voice income development of 11.9% and information income development of 29.2%. Cellular cash income grew by 32.8% in fixed forex,  with a continued robust efficiency in East Africa of 36.0% and Francophone Africa of twenty-two.3%.

Equally, the telco skilled information and cellular cash development because the penetration of those companies continued to rise, driving a rise in information prospects to 64.4 million and a 20.7% improve in cellular cash prospects to 38 million.

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