Airtel Africa has announced a significant financial turnaround for the quarter ending June 30, 2024, achieving a profit before tax of $74 million. This marks a 134% improvement compared to the $221 million pre-tax loss reported during the same period in the previous fiscal year.
Revenue for the quarter decreased to $1.16 billion, reflecting a 16% year-on-year decline from $1.38 billion recorded in the previous financial year. Despite the positive profit figures, the company faced challenges from currency devaluation, particularly in Nigeria.
Other key financial metrics include:
Revenue: $1.16 billion, down 16.1% year-on-year
Operating Profit: $335 million, down 27.4% year-on-year
Capital Expenditure: $147 million, up 5% year-on-year
Net Cash from Operating Activities: $414 million, down 28.7% year-on-year
Total Finance Cost: $261 million, down 62% year-on-year
Profit Before Tax: $74 million, up 134% year-on-year
Profit After Tax: $31 million, up 120.3% year-on-year
Earnings Per Share: $0.002, up 104% year-on-year
Total Customer Base: 155.4 million, up 9% year-on-year
Airtel Nigeria’s revenue grew by 33.2% year-on-year in Naira terms, but fell significantly by 51.6% to $256 million in US Dollar terms. Conversely, the group’s East African operations emerged as a strong performer, contributing significantly to revenue growth.
Sunil Taldar, CEO of Airtel Africa, commented on the company’s performance, highlighting the group’s focus on improving margins and reducing foreign currency exposure.
“The continued revenue growth momentum reflects the resilient demand for our services, with sustained growth in our customer base and usage.”
Taldar also highlighted the group’s focus on improving margins and reducing foreign currency exposure. “During the quarter, we fully repaid the outstanding debt due at the HoldCo and are committed to further reducing foreign currency exposure to mitigate the impact of currency devaluation on our business.”
The group reported significant progress in managing its foreign currency debt, repaying approximately $828 million of its FX-denominated debt over the past year. Finance costs for the quarter decreased by 62% to $261 million.
Airtel Africa’s financial performance for Q2 2024 underscores a robust recovery and strategic management of financial challenges, setting a solid foundation for future growth in a dynamic market environment.
