Airtel Africa, Nigeria’s second-largest telecoms company, faced substantial financial challenges in the fiscal year ending March 31, 2024, primarily due to currency devaluations in key markets like Nigeria and Malawi.
These devaluations resulted in notable losses of $1.7 billion from derivatives and foreign exchange. Despite showing robust growth in service revenues, with a 20.9% increase overall and a surge to 23.1% in the fourth quarter when measured in constant currency, Airtel’s financial picture in reported currency paints a different picture.
The company experienced a 5.3% decline in group revenue, reaching $4,979 million, and a 5.7% drop in EBITDA, amounting to $2,428 million.
These figures largely reflect the severe impact of the Nigerian Naira and Malawian Kwacha devaluations against the US dollar.
During the year, the Nigerian Naira depreciated significantly from 461 to 1,303 per US dollar, significantly impacting Airtel’s financial performance. This devaluation led to a reported revenue loss of $1,042 million and a $554 million reduction in EBITDA for the company.
