The news

• Airtel Nigeria’s revenue fell by 40.34% to $738 million in 2024, down from $1.24 billion in 2023.
• The decline is primarily attributed to the significant devaluation of the Nigerian naira.
• Despite the revenue drop, Airtel Nigeria experienced a 3.2% increase in its customer base.
• Data usage per customer rose by 37.2% to 8.4 GB per month.

Airtel Nigeria, the country’s second-largest telecommunications operator, reported a substantial 40.34% decline in revenue for the nine months ending December 31, 2024. The company’s revenue decreased to $738 million from $1.24 billion during the same period in 2023.

The primary factor contributing to this decline is the significant devaluation of the Nigerian naira, which lost over 40% of its value in 2024. In constant currency terms, Airtel Nigeria’s revenue grew by 35%, indicating robust underlying performance. However, the devaluation severely impacted reported figures when translated to U.S. dollars.

Despite the financial downturn, Airtel Nigeria’s customer base expanded by 3.2%, reaching 52.1 million subscribers. This growth was accompanied by a notable increase in data consumption; average data usage per customer surged by 37.2% to 8.4 GB per month, up from 6.2 GB in the previous year. Smartphone penetration also rose by 6.4%, now encompassing 49.5% of Airtel’s customer base.

The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at $360 million, reflecting a 46.4% decline in reported currency but a 20.6% increase in constant currency. The EBITDA margin decreased by 557 basis points to 48.8%, influenced by inflationary pressures and increased operational costs, particularly a 60% rise in diesel prices.

In response to these challenges, Airtel Nigeria adjusted its voice and data pricing, increasing tariffs by up to 50%. This move aligns with the Nigerian Communications Commission’s (NCC) directive for a 50% telecom tariff adjustment, aiming to balance industry sustainability with consumer interests.

While the naira’s devaluation has adversely affected reported revenues, the growth in customer base and data usage suggests a resilient demand for Airtel’s services. The company remains focused on navigating the economic challenges while providing essential telecommunications services to its expanding user base.