Airtel Africa Reports $549 Million FX Loss Due to Currency Devaluations in Nigeria and Malawi
Written by Deborah Oyinloye on May 9, 2024
Airtel Africa Plc, Nigeria’s second-largest telecom operator, has disclosed a loss after tax of $89 million for its full year ending March 2024, citing substantial foreign exchange losses of $549 million attributed to currency devaluations in Nigeria and Malawi.
The telecom giant, operating in 14 African countries, revealed in its report released earlier today, Thursday, May 9, 2024, that the devaluations of the Nigerian naira in June 2023 and the Malawian kwacha in November 2023 had a significant impact on its quarterly earnings.
“Loss after tax was $89 million, primarily impacted by significant foreign exchange headwinds, resulting in a $549 million exceptional loss net of tax following the Nigerian naira devaluation in June 2023 and the Malawian kwacha devaluation in November 2023,” the report stated.
Despite these challenges, Airtel Africa witnessed growth in constant currency revenue, marking an increase of 20.9% for the full year, with growth accelerating to 23.1% in Q4’23. Nigerian constant currency revenue reached 34.2% growth in Q4’23, despite challenging conditions.
Olusegun Ogunsanya, CEO of Airtel Africa, emphasized the company’s commitment to facilitating growth and reducing risks associated with currency devaluation through strategic investments in distribution and technology.
The report also highlighted a 9.0% increase in the total customer base to 152.7 million, along with a 17.8% increase in data customers to 64.4 million and a 20.8% increase in data usage per customer, demonstrating Airtel Africa’s efforts to bridge the digital divide.
Mobile services revenue grew by 19.4% in constant currency, driven by voice revenue growth of 11.9% and data revenue growth of 29.2%. Mobile Money revenue also saw robust growth of 32.8% in constant currency, particularly in East Africa.
Airtel Africa management will host an analyst and investor conference call later today, Thursday, May 9, 2024, at 1:00 p.m. UK time (BST), providing insights into the company’s performance and addressing questions from stakeholders.
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Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
