Airtel Africa has turned a corner with a significant profit of $31 million for Q1 2024, marking a stark recovery from the $151 million loss reported in the same period last year. This turnaround comes after a challenging 2023, which saw substantial losses due to currency devaluations across several key markets.
Despite this impressive profit rebound, macroeconomic challenges remain. Revenue for the quarter fell by 16.1% to $1.15 billion, primarily driven by currency devaluation and rising fuel costs in Nigeria. In response, Airtel Africa is focusing on cost reduction and energy-saving measures to mitigate network expenses.
The telecoms giant saw considerable growth in its core business areas. Mobile money customers surged by 14.9%, reaching 39.5 million, while data customers expanded by 13.4% to 64.4 million. This growth has been pivotal in boosting the Average Revenue per User (ARPU), with data revenue climbing to $409 million and voice revenue reaching $476 million. Mobile money revenue also saw an increase, totaling $22 million, with strong performance in East Africa and Francophone Africa.
Airtel Africa’s customer base grew to 155.4 million, supported by the company’s investment in infrastructure, including the laying of over 5,600 km of fibre cables.
Despite the positive financial results, Airtel’s share price dropped 10% in pre-market trading, ahead of the Q1 earnings call scheduled for Thursday. New CEO Sunil Taldar, who took over from Olusegun Ogunsanya in June 2024, highlighted the company’s focus on expanding its enterprise, fibre, and data centre businesses across Africa. In March 2024, the company initiated work on a new data center, set to be operational by Q1 2026.
