Airtel Africa’s profit dips amid forex losses, rising costs

BY TEMITOPE ADEBAYO

Airtel Africa Plc has reported a Profit After Tax of $248 million for the nine-month period ending 31 December 2024, but the figure was significantly impacted by foreign exchange losses and rising operational costs.

Despite benefiting from a one-off $94 million gain due to the appreciation of the naira and Tanzanian shilling, the company struggled with $57 million in exceptional derivative and foreign exchange losses, highlighting the ongoing financial pressures affecting its operations.

Airtel’s EBITDA for the period dropped by 11.9 per cent to $1.68 billion, with margins shrinking to 46.2 per cent, largely due to surging fuel costs and Nigeria’s diminishing contribution to the Group’s earnings.

Earnings per share also declined from 7.1 cents to 6.2 cents, underscoring weaker profitability.

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Although the company reported revenue growth of 20.4 per cent in constant currency, its actual financial gains have been eroded by currency volatility and cost inflation. The recent decision by the Nigerian Communications Commission (NCC) on tariff adjustments offers some relief, but uncertainties remain.

Meanwhile, Airtel Africa sought to bolster its public image through a school essay competition under its Employee Volunteer Scheme, despite its financial struggles.

The initiative, aimed at primary school pupils, was positioned as part of the company’s corporate social responsibility efforts. However, as the telecom firm faces mounting cost pressures and volatile market conditions, its ability to sustain profitability without reliance on one-off currency gains remains in question.