NGX-listed Airtel Africa generates $2.62bn in half-year revenue
Airtel Africa has reported a half-year revenue of $2.62 billion for the six-month period from April 1 to September 30 (its H1 2024), indicating a year-on-year growth of 2.3% compared to the same period in the previous year. The report highlights that when revenue is measured in constant currency, it experienced substantial growth, specifically a 19.7% increase. However, when measured in the reported currency, which is the US Dollar, the revenue showed a more modest growth of 2.3%.
For the quarter ending on September 30, 2023 (Q2 2024), the revenue in reported currency declined by 4.7%. This decline was attributed to the impact of the devaluation of the Nigerian naira in June 2023. Nonetheless, in constant currency, the group achieved a noteworthy year-on-year revenue increase of 19.0% during the quarter.
As per the half-year financial statements for the period ending on September 30 made available on the Nigerian Exchange, the group reported a pre-tax loss of $13 million, marking a significant 103.8% decrease compared to the $330 million pre-tax profit reported during the same period in the prior year.
Amid Nigeria's currency devaluation challenges, Airtel Africa, dual-listed in Lagos and London, presents strategic opportunities for investors. The company's diversified market presence across several African countries mitigates risks associated with fluctuations in a single market. Despite short-term currency fluctuations impacting reported revenues, consistent growth in constant currency demonstrates the strength of its underlying business operations. Airtel Africa, being a major player in the telecom industry, benefits from the continent's rising mobile penetration and digitalization trends. Additionally, its ability to adapt to local market demands and invest in expanding its network and services positions it for long-term success. For investors, this signifies the potential for robust returns as the company navigates economic challenges, making it an intriguing option within Africa's emerging market landscape. However, it's crucial for interested investors to conduct thorough research and seek professional advice before making any investment decisions.