Airtel Africa reports $74 million pre-tax profit as Nigerian subsidiary struggles

Airtel Africa has recorded a profit before tax of $74 million for the quarter ending June 30, 2024.  

This marks an impressive 134% year-on-year appreciation from the $221 million pre-tax loss posted by the company in corresponding period of the 2022/2023 financial year. 

Following the impact of currency devaluation, especially in Nigeria, the group’s revenue during the quarter declined to $1.16 billion, reflecting a 16% YoY decline from the $1.38 billion posted in the corresponding period of the previous financial year.  

However, there was a significant decline in Airtel Nigeria’s contribution to the group’s overall turnover during the period.  

In Naira terms, Airtel Nigeria’s revenue grew by 33.2% year-on-year. However, in US Dollar terms, it declined by 51.6% to $256 million, from $528 million during the quarter ending June 30, 2023.  

Key highlights Q1 2025 vs Q1 2024 

• Revenue: $1.16 billion, -16.1% YoY  

• Operating profit: $335 million, -27.4% YoY  

• Capital expenditure: $147 million, +5% YoY  

• Net cash generated from operating activities: $414 million, -28.7% YoY 

• Total finance cost: $261 million, -62% YoY  

• Profit before tax: $74 million, +134% YoY 

• Profit after tax: $31 million, +120.3% YoY  

• Earnings per share: $0.002, +104% YoY 

• Total customer base: 155.4 million, +9% YoY  

Commentary: The chief executive officer of Airtel Africa, Sunil Taldar noted about the group’s financial performance during the month,  

“The continued revenue growth momentum once again reflects the resilient demand for our services, with sustained growth in our customer base and usage. Our superior execution enables us to capture these opportunities, whilst retaining our reputation as a cost leader across the industry.” 

He further noted that the group was focused on improving its margins and reducing its foreign currency exposure.  

“A strong capital structure is critical to enabling these ambitions and future proofing our ambitious growth targets. During the quarter, we fully repaid the outstanding debt due at the HoldCo and we remain committed to further reduce foreign currency exposure across the Group to limit the impact of currency devaluation on our business. The growth opportunity across our markets remains compelling and we continue to focus on margin improvement as indicated in our FY’24 results.” 

• Despite a 33% Naira appreciation in Airtel Nigeria’s revenue during the quarter, the contribution of the company to the group’s revenue dropped significantly from the previous financial year.  

• In Q1 2023/2024, Airtel Nigeria contributed 38% to the group’s revenue, however in Q1 2024/2025, its contribution to total revenue dropped to 22%.  

• During the quarter under review, the group’s East African operations was its highest revenue contributor, as its revenue appreciated by 7% to $423 million, from $397 million as of the corresponding quarter in the previous financial year.  

• The group’s East African businesses include Kenya, Malawi, Rwanda, Tanzania, Uganda, and Zambia.  

• The group’s finance costs during the period declined by 62% to $261 million from $683 million recorded in the corresponding quarter in FY 2023/2024.  

• The decline in finance costs was majorly driven by FX losses declining to $122 million, from $471 million as of Q1 2023/2024.  

• During the quarter under review, inflationary pressures and fuel price hike in Nigeria had an effect on the capital expenditure of the group, as its CAPEX increased to $147 million, as against $140 million in the corresponding period of Q1 2023/2024.  

$828 million FX-denominated debt paid in one year  

In the financial statement, the group noted that over the past year, it had paid back about $828 million of foreign currency denominated debt. It was noted that 86% of its market debt is now denominated in local currencies.  

The group also referred to the repayment of its $550 million bond in May 2024.

Nairametrics