Airtel Africa Sees Strong Subscriber Growth Amid Currency Challenges in Half-Year Results

Airtel Africa reported strong operating growth for the half-year ending September 30, 2024, with its customer base increasing by 6.1% to reach 156.6 million. Data customer numbers rose by 10.4% to 66 million, supported by a 30.9% growth in data usage per customer and an increase in smartphone penetration, now at 42.9%. Mobile money subscribers also grew by 13.4% to 41.5 million, driving an annualized transaction value of $128 billion, reflecting Airtel’s commitment to advancing financial inclusion across its markets.

In terms of revenue, Airtel Africa saw a year-on-year growth of 19.9% in constant currency, largely driven by a 38.2% surge in its key Nigerian market. Mobile services revenue across the Group grew by 18.4%, while Mobile Money revenue climbed 28.8%. However, due to currency devaluation, particularly in Nigeria, reported revenue declined by 9.7%.

EBITDA margins decreased to 45.8%, impacted by rising fuel costs and currency challenges, although sequential improvements were seen in Q2 due to cost-efficiency programs initiated earlier in the year. The company’s constant currency EBITDA rose by 13.5%, though reported EBITDA declined by 16.5% to $1.087 billion.

Profit after tax stood at $79 million, affected by $151 million in foreign exchange losses tied to further depreciation of the Nigerian naira. EPS before exceptional items dropped from 7.0 to 4.9 cents due to currency devaluation impacts. Basic EPS of 0.8 cents compared favorably to the negative 1.5 cents reported in the previous period, marking improvement despite ongoing currency challenges.