Airtel Nigeria, the country’s second-largest telecom operator, reported a 40.34% decline in mobile services revenue, which fell to $738 million for the year ending December 31, 2024, from $1.2 billion in the previous year. The drop was primarily due to the significant devaluation of the Nigerian naira, which lost over 40% of its value. Despite these challenges, the company remains optimistic, supported by a recent tariff hike and growing demand for data services.
Financial Performance Highlights
- Revenue Decline: Mobile services revenue fell by 40.34% to $738 million.
- Voice Revenue: Declined by 46.34% to $315 million.
- Data Revenue: Dropped by 36.28% to $344 million.
- EBITDA: Stood at $360 million, reflecting a 46.4% decline in reported currency but a 20.6% increase in constant currency.
- Operating Free Cash Flow: Increased by 85% in constant currency but declined by 48% in reported currency.
The decline was largely due to the naira’s depreciation—from an average exchange rate of NGN/USD 677 to NGN/USD 1,532—and rising operational costs, including a 60% increase in diesel prices. Despite these setbacks, Airtel Nigeria’s subscriber base grew by 3.17% to 52.1 million, with data usage per customer rising by 37.2% to 8.4 GB per month. Smartphone penetration increased by 6.4% to 49.5%, driving smartphone data usage to 11.2 GB per month.
Tariff Hike to Drive Revenue Recovery
To offset the impact of currency devaluation and inflation, the Nigerian Communications Commission (NCC) approved a 50% tariff increase for telecom services. Airtel Nigeria implemented the new pricing model in early 2025, raising charges for voice calls, SMS, and data bundles. For example, SMS costs increased from N4 to N6 per message.
CEO Dinesh Balsingh expressed optimism about the revenue recovery: “The price increase, which was highly needed for the survival and growth of the industry, will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers.”
Airtel Africa’s Strong Performance
Compared to its Nigerian subsidiary, Airtel Africa performed robustly, reporting a profit after tax of $248 million (N190.4 billion) and a 20.4% increase in revenue (in constant currency) to $3.64 billion. Mobile money transaction revenue surged by 29.6% to $731 million, while its subscriber base grew by 7.9% to 163.1 million. The company invested $456 million (N352 billion) in expanding its network to support growth.
Future Outlook
Looking ahead, Airtel Nigeria aims to leverage the recent tariff hike and signs of currency stabilization to drive revenue recovery in 2025. The company plans to invest in network infrastructure, expand coverage, and offer competitive products and services to meet the evolving needs of its customers. Despite recent challenges, Airtel Nigeria remains confident in its long-term growth prospects as demand for data and mobile money services continues to rise.
