By Milcah Tanimu
Airtel Africa has disclosed a substantial financial setback of $1.7 billion attributed to currency devaluation in key markets such as Nigeria and Malawi for the fiscal year ending March 31, 2024.
Despite a commendable 20.9% growth in service revenues measured in constant currency, the company experienced a 5.3% decline in group revenue and a 5.7% decrease in EBITDA due to adverse currency fluctuations.
The CEO, Olusegun Ogunsanya, outlined strategies aimed at mitigating currency risks, including investments in distribution and technology to drive revenue growth and minimize vulnerabilities to currency devaluation.
Notably, the Nigerian Naira depreciated significantly from 461 to 1,303 against the US dollar during the fiscal year, resulting in a substantial impact on Airtel’s financial performance. The company incurred a loss of $1.042 billion in reported revenue and a $554 million decrease in EBITDA due to the Naira’s devaluation.
Ogunsanya emphasized the resilience of Airtel’s affordable offerings amidst inflationary pressures, attributing revenue growth to strategic investments in distribution and technology.
Operational highlights revealed robust performance in mobile services and mobile money segments, with revenue growth driven by data and voice services. Despite challenges posed by currency devaluation, Airtel maintained operational efficiency, reflected in reported EBITDA margins.
In Nigeria, Airtel witnessed significant revenue growth in constant currency, propelled by increased data demand. However, reported revenues were impacted by the Naira’s depreciation, leading to operational challenges mitigated by cost efficiencies.
While Airtel faced currency-related losses, operational performance remained resilient, with strategic investments positioning the company for future growth despite economic uncertainties.