Airtel Africa Reports Higher Operational Profit and Revenue, Despite Naira Devaluation Impact

Airtel Africa PLC celebrated increased operational profit and revenue growth in the first half of the fiscal year. Despite these positive results, statutory profit was negatively affected by the sharp devaluation of the Nigerian naira in June.

During the six months ending on September 30, Airtel Africa’s operating profit rose by 1.5%, reaching $885 million compared to $872 million in the previous year. Earnings per share before exceptional items also saw a 3.2% improvement, rising to 7.0 US cents from 6.8 cents the previous year.

However, the company’s statutory pretax profit saw a significant decline to $12 million from $516 million.

Airtel Africa reported revenue growth of 2.3%, reaching $2.62 billion, up from $2.57 billion the previous year. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 3.7% to $1.30 billion, compared to $1.26 billion the previous year. When measured at a constant currency rate, EBITDA increased by 21%.

The company cited the devaluation of the Nigerian naira in June, where the exchange rate went from NGN465.50 on June 16 to NGN789.04, a 70% increase. Airtel Africa highlighted this significant devaluation and its impact on financial results.

Despite these challenges, Airtel Africa saw its customer base grow by 9.7% to 147.7 million, compared to 134.7 million in the previous year. The company declared an interim dividend of 2.38 US cents per share, a 9.2% increase from the 2.18 cents declared in the previous year.

Looking ahead, CEO Olusegun Ogunsanya emphasized the company’s commitment to delivering affordable and reliable telecom and mobile money services across its markets. Airtel Africa aims to leverage operational performance and cost efficiencies to navigate challenges and improve its EBITDA margin in FY24 compared to FY23.

Airtel Africa shares saw an 8.3% increase, reaching 118.90 pence per share on Monday morning in London.