In Nigeria, Airtel Africa Plc has shown impressive financial growth, margin expansion, and strong cash generation despite facing foreign exchange challenges, particularly the devaluation of the naira since June 2023.
Reportedly, the company’s revenue in Nigeria grew by 23% in constant currency, driven by increased usage of voice, data, and mobile money services. Additionally, Airtel Africa’s customer base in Nigeria expanded by 7.8% to 59.8 million, while its mobile money customer base saw a remarkable 19% growth, reaching 36.5 million.
ALSO READ: Interesting stories
The company’s performance in Nigeria is particularly noteworthy given the obstacles posed by the naira devaluation, resulting in a 4.7% decline in reported currency revenue during the second quarter of fiscal 2024. However, Airtel Africa effectively countered the impact of the devaluation by prioritizing cost-efficiency measures, leading to a notable improvement in the EBITDA margin in Nigeria, which rose by 70 basis points to 49.6%.
Olusegun Ogunsanya, Group Chief Executive Officer of Airtel Africa, remarked, “I am pleased to report a strong operating performance for the Group despite foreign exchange headwinds in many of our markets, particularly in Nigeria. The sustained growth in voice, data, and mobile money usage underlines the enduring demand for these essential services across our operational footprint.”
In other markets, Airtel Africa achieved substantial growth with double-digit constant currency revenue increases in mobile services and mobile money. The company also maintained a 70 basis point improvement in the EBITDA margin, reaching 49.6%, signifying its ongoing commitment to cost efficiency.
LEARN MORE: Read blogs and articles here!!!
Airtel Africa allocated $312 million in capital expenditures, with the majority directed towards network expansion and improvement. Furthermore, the company announced an interim dividend of 2.38 cents per share, representing a 9% increase.
Looking ahead, Ogunsanya stated, “Our primary focus remains the provision of accessible and reliable telecom and mobile money services across our markets. Our robust operational performance positions us as a stronger and more resilient company, well-prepared to capitalize on the growth opportunities present in these markets. Despite the challenges presented by rising diesel prices in Nigeria, we aim to mitigate their impact by continuing to leverage operational efficiency and cost optimization, ultimately delivering an improved EBITDA margin in FY’24 compared to FY’23.”
ALSO CHECK: Affordable products