In a recent financial disclosure, Airtel Africa has reported a loss after tax amounting to $13 million, attributing the setback primarily to foreign exchange fluctuations, particularly in the Nigerian market.
Despite challenges posed by the volatile currency exchange rates, Airtel Africa remains resilient, focusing on its core strengths and strategies to counterbalance the impact and sustain its growth trajectory.
The telecommunications giant, faced a significant hurdle due to currency devaluation, leading to a decline in reported currency revenues by 4.7% in Q2 ’24.
However, the company’s constant currency revenues experienced an impressive 19.0% increase during the same period, reflecting the underlying strength of its operations.
Airtel Africa’s mobile money segment, a key driver of its revenue, had a substantial 30.9% growth in constant currency despite the adverse effects of foreign exchange fluctuations. With 31.5 million Airtel Money customers, the company’s aim to provide accessible financial services remains steadfast.
Despite the challenges presented by the dynamic FX market, Airtel Africa’s CEO, Olusegun Ogunsanya, expressed confidence in the company’s strategies to navigate these obstacles. He emphasized the company’s sustained efforts to drive efficient and long-term growth, allowing them to mitigate risks associated with currency fluctuations. The focus remains on enhancing customer satisfaction and expanding their customer base, key elements of the company’s six-pillar ‘win-with’ strategy.
Airtel Africa’s dedication to fostering financial inclusion and bridging the digital divide remains staunch. With a population in its markets predominantly aged between 10 and 24, the demand for data, mobile voice, and mobile money services continues to rise.
Airtel Africa sees this as an opportunity to further serve its customers and provide essential services in some of the least penetrated telecoms markets globally, where only 48% of the population owns one or more SIM cards.
Glancing into the future, Airtel Africa will boost delivering affordable and reliable telecom and mobile money services across its markets. Despite challenges like rising diesel prices in Nigeria, the company aims to limit the impact through operational leverage and further cost efficiencies, intending to deliver an improved EBITDA margin in FY ’24 compared to FY ’23.
Airtel Africa remains focused on its mission to connect people, enhance financial inclusion, and contribute to the economic development of the regions it serves.
While facing the headwinds of the FX market, Airtel Africa stands resilient, steering through challenges with strategic efficiency. The company’s ability to adapt and innovate in the face of adversity reflects its dedication to providing essential services even in the most challenging economic landscapes.
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