Airtel Africa records $248 million profit after tax for 9 months ending Dec 2024

Joshua Fagbemi
Airtel Africa also recorded an 18.3 per cent rise in mobile money subscribers
Airtel

One of Africa’s leading telecom operators, Airtel Africa, has announced a profit after tax of $248 million (N190.4 billion) for the nine-month period ending December 2024. The company revealed a $94 million exceptional gain following the appreciation of the Nigerian naira and Tanzanian shilling.

In Airtel Africa’s financial statement filed on the Nigeria Exchange Limited on Thursday, its revenue in mobile services increased by 21.3 per cent while mobile money transaction revenue increased by 29.6 per cent to $731 million. 

Likewise, the company’s subscriber base grew by 7.9 per cent to 163.1 million, driving revenue growth in data services. The company also continues to invest heavily in expanding its network, with capital expenditures (Capex) totalling $456 million (N352 bn) for the period.

Airtel logo

On the other hand, the telecom giant reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.68 billion, representing an 11.9 per cent decline in reported currency and an EBITDA margin of 46.2 per cent.

Airtel Africa cited negative impacts from ongoing inflationary pressures and currency fluctuations in some of its markets. It added higher fuel costs and a lower contribution from Nigeria as contributing factors.

Similar Read: Airtel Africa reports a 19.9% revenue increase, 156.6 million customers in H1, 2024.

More on Airtel Africa’s mobile money and revenue growth

Airtel Africa’s continued expansion of mobile financial services led to an 18.3 per cent rise in mobile money subscribers, reaching 44.3 million.

Revenue from mobile services grew by 18.8 per cent in constant currency. This was driven by voice revenue growth of 9.8 per cent, data revenue growth of 29.5 per cent, and mobile money revenue growth of 29.6 per cent.

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The company recorded a 33.3 per cent increase in mobile money transaction value with an annualized transaction volume of $146 billion. Overall, data Average Revenue Per User (ARPU) surged by 15 per cent, and mobile money ARPU by 11.8 per cent, thereby supporting 12 per cent YoY growth in overall ARPUs.

Airtel Africa reported a 20.4 per cent increase in revenue (in constant currency) to $3.64 billion for the nine-month period driven by strong subscriber growth and increased mobile money adoption. Its revenue in reported currency declined by 5.8 per cent, reflecting the impact of currency devaluations across its markets.

Also, the company’s data customers increased by 13.8 per cent to 71.4 million as data usage per customer surged by 32.3 per cent to 6.9 GBs. This gained momentum from the rise in smartphone penetration by 5.2 per cent to 44.2 per cent.

Commenting on the financial statement, Airtel Africa’s Chief Executive Officer, Sunil Taldar, emphasized that the company’s strategic focus on network investment, customer journey digitization, and speed in execution is helping Airtel Africa unlock substantial growth opportunities across its markets.

We have delivered improved operational and financial performance, driven by our focus on customer experience, network expansion, and digital transformation. Demand for our services remains strong despite economic challenges, and our cost efficiency program has contributed to EBITDA margin expansion,” Taldar said. 

He noted that the recent encouraging developments, such as the stabilizing currency in some markets and the Nigerian Communications Commission’s decision on tariff adjustments will create a more favourable operating environment.

Sunil Taldar, Airtel Africa CEO
Sunil Taldar, Airtel Africa CEO

Taldar added that the strong demand for the company’s services, despite a challenging economic environment, signifies the resilience attitude of its business model.

In its effort to optimize its capital base, the company launched the second phase of its share buyback in December. This followed the conclusion of an initial $100 million share buyback which saw the telecom operator pay back $100 million to its shareholders. The first buy-back tranche which commenced in March and ended in August 2024 amounted to a maximum of $50 million. 

The second buyback phase was in line with its commitment to implementing its existing capital allocation policy, which is targeted at reinforcing the company’s continued growth potential, consistent cash accretion at the holding company level, and strong balance sheet.

According to the Nigerian Exchange (NGX) last month, Airtel Africa is the second-most valuable company with a market capitalization of N8.11 trillion. This represents a 13.2 per cent share of the entire equity market.


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