Airtel Africa incurred $89 million in loss after tax for the year ended 31 March 2024, in stark contrast to an after-tax profit of $750 million twelve months earlier.
This downturn followed a long-standing currency crisis in its largest market, Nigeria, which significantly impacted the company's bottom line. The Nigerian naira, facing recurrent foreign exchange headwinds and dollar scarcity since pre-pandemic days, plunged to a record low in January, after its second devaluation in seven months, reaching a critical point in March.
Nigeria contributes 30 percent of the wireless operator’s revenue, according to the company’s financial reports. East Africa, Francophone Africa, and the telco’s mobile money business account for the rest. At $5 billion, turnover was slightly weaker by 5.3 percent as all key revenue sources, except mobile money revenue, fell.
Earnings for Airtel Africa took a hit from a $1.1 billion derivative and foreign exchange losses in Nigeria. Alongside a jump in finance costs to $482 million, this triggered a loss before tax of $63 million. Airtel Africa incurred $1.2 trillion in loss due to foreign currency translation differences, which surged by 235.7 percent yearly. The total comprehensive loss for the year stood at $1.3 billion compared to a $397 million gain in 2023. CEO Olusegun Ogunsanya stated, “Key initiatives include the reduction of US dollar debt across the business and the accumulation of cash at the HoldCo level to cover the outstanding debt due fully. We will continue to focus on reducing our exposure to currency volatility.”
Airtel Money, the group’s fastest-growing unit, contributed 20 percent more to the revenue pool than it did a year ago. This mobile money unit has been esteemed as the brightest spot in the telco’s business, with talks around spinning it off into an independent entity already at an advanced stage. The mobile money business, which has witnessed considerable transformation following the success of its payment unit Smartcash across the continent, is on course to launch an initial public offer of $4 billion very soon.
Airtel Africa is currently undertaking a share repurchase program as it seeks to spend $100 million on buying back its own shares, which it hopes will strengthen the valuation of its stock.
