Telecommunications firm Airtel Africa, operating in 14 African countries, reported a staggering 99% drop in profits last year due to currency devaluation in several of its key markets, including Nigeria, Malawi, Zambia, and Kenya.
The devaluations of the Naira and the Malawian Kwacha significantly impacted Airtel Africa’s margins, resulting in annual profits of $2 million. The company noted that the Naira’s devaluation alone cost Airtel $301 million.
This $2 million profit is a substantial drop from the $523 million profit recorded in the nine months ending December 2022. Additionally, the adverse results led to a 1.4% decrease in Airtel’s revenue, tumbling to $3.8 million from $3.9 million in the previous year.
Despite these results, Group Chief Executive Officer Olusegun Ogunsanya remains optimistic. He stated that, although the currency devaluations affected financial performance, they wouldn’t hinder the company’s growth plans.
The financial statement also reported increases in group mobile services revenue, growing by 18.6%. This growth was fueled by an 11.2% increase in voice revenue and a 28.5% rise in data revenue. Mobile money revenue also saw a significant increase of 31.8% in constant currency.
Additionally, Airtel’s total customer base grew by 9.1%, resulting in a 22.4% jump in data customers and a 19.5% rise in mobile money customers.
