Rising demand for mobile data services in Africa has driven an increase in revenues at the second largest mobile phone operator in the continent.
Airtel Africa, which is controlled by Bharti Airtel, the telecoms conglomerate led by Sunil Mittal, the Indian tycoon, reported a 2.3 per cent increase in reported currency revenues to $2.6 billion in the six months to September 30.
The group, which runs mobile data, voice and banking services in 14 countries, recorded a 9.7 per rise in its customer base to 147.7 million. Data customers rose by 23 per cent to 59.8 million, resulting in a 28.1 per cent growth in data revenue. The number of mobile money customers grew by 23.1 per cent to 36.5 million.
However, Airtel Africa reported a $13 million loss after tax for the period, which it blamed on the devaluation of the Nigerian naira in June. “Excluding the impact of these exceptional items, profit after tax would be $304 million, compared with $288 million in the prior period,” the company said.
Olusegun Ogunsanya, 57, its chief executive, said: “As reported in July 2023, our results for the first quarter were significantly impacted by the changes to the FX market in Nigeria, introduced by the central bank.”
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He added that while the currency changes “are required for the long-term benefit of the Nigerian economy, the immediate impact of the naira devaluation continues to weigh on our reported financial performance in the period.
“Our focus remains to enhance long-term value by continuing to drive sustained and efficient growth.”
The company said the devaluation of the naira had resulted in a foreign exchange loss of $317 million after tax. However, it classified the event as an “exceptional item”.
Shares in Airtel Africa rose by 5p, or 4.6 per cent, to 115p.
