Airtel Africa Announces $74 Million in Pre-Tax Earnings Amid Struggles in Nigerian Unit

Airtel Africa reported $74 million in earnings before taxes for the quarter that ended on June 30, 2024.

This represents a remarkable 134% annual growth over the $221 million pre-tax loss the corporation had during the same period of the 2022–2023 fiscal year.

The group’s revenue for the quarter dropped to $1.16 billion, a 16% YoY decrease from the $1.38 billion recorded in the same period of the previous financial year, due to the effects of currency devaluation, particularly in Nigeria.

Nonetheless, throughout that time, Airtel Nigeria’s share of the group’s total turnover significantly decreased.

Airtel Nigeria’s income increased by 33.2% on an annual basis in Naira. Nonetheless, it decreased by 51.6% to $256 million in US dollars from $528 million in the quarter that ended on June 30, 2023.

Comparing Q1 2025 with Q1 2024: Keynotes 

• Revenue: $1.16 billion, down 16.1% YoY
• Operating profit: $335 million, down 27.4% YoY
• Capital expenditure: $147 million, up 5% YoY
• Net cash from operating activities: $414 million, down 28.7% YoY
• Total finance cost: $261 million, down 62% YoY
• Profit before tax: $74 million, up 134% YoY
• Profit after tax: $31 million, up 120.3% YoY
• Earnings per share: $0.002, up 104% YoY
• Total customer base: 155.4 million, up 9% YoY

Regarding the organization’s financial performance for the month, Airtel Africa CEO Sunil Taldar stated,

“With steady expansion in both our clientele and usage, the pace for revenue growth indicates the strong demand for our services once again. We are able to seize these opportunities and maintain our standing as the industry leader in terms of cost because of our exceptional execution.”

He added that the team’s goals were to increase margins and lower its exposure to foreign exchange risk.  

“A solid capital structure is crucial to achieving these objectives and future-proofing our ambitious growth aspirations. During the quarter, we fully repaid the HoldCo’s outstanding debt, and we remain committed to further reducing foreign currency exposure across the Group to mitigate the impact of currency devaluation on our operations. The growth opportunity in our markets is enticing, and we continue to focus on margin improvement, as demonstrated in our FY’24 performance.” 

Airtel Nigeria’s revenue increased by 33% in Naira during the quarter, while the company’s share of the group’s revenue decreased compared to the prior fiscal year.

Airtel Nigeria earned 38% of the group’s income in the first quarter of 2023–2024; by the same quarter the following year, that percentage had decreased to 22%.

The group’s East African activities contributed the most revenue during the reviewed quarter, increasing by 7% to $423 million from $397 million during the same quarter in the prior fiscal year.

The company operates in Kenya, Malawi, Rwanda, Tanzania, Uganda, and Zambia in East Africa.

During the period, the group’s financing costs decreased by 62% to $261 million from $683 million in the same quarter of FY 2023/2024.  

The decrease in finance costs was mostly caused by FX losses, which dropped from $471 million in Q1 2023/2024 to $122 million.

Pressures from inflation and the increase in gasoline prices in Nigeria affected the group’s capital expenditures during the reviewed quarter, causing its CAPEX to rise to $147 million from $140 million during the same period in Q1 2023/2024.

Debt in FX of $828 million settled in a single year

The business stated in the financial statement that it had paid off approximately $828 million in debt denominated in foreign currencies during the previous year. It was observed that the current market debt of the company is 86% valued in local currency.

In addition, the group mentioned paying back its $550 million bond in May 2024.