Despite an increase in its customer numbers, Airtel Africa faced a US$89mn deficit, attributed to a substantial tax obligation stemming from “exceptional derivative and foreign exchange loss”
If these extraordinary items were not considered, the company’s profit for the fiscal year ending 31 March, would have reached US$460mn.
The operator saw a 9% surge in its total subscribers, reaching 152.7 million, alongside a 17.8% rise in data users totaling 64.4 million, and a 20.8% hike in data consumption per user.
Investments in capital expenditures remained steady at US$737mn, falling short of projections due to postponed data center investments. The firm allocated US$152mn for renewing licenses and acquiring spectrum, with US$127mn dedicated to renewing its Nigerian 3G license.
Revenues saw a 5.3% decrease, dropping from US$5.2 billion to US$4.9bn, largely impacted by the devaluation of the Nigerian naira.
Olusegun Ogunsanya, CEO of Airtel Africa, stated that efforts to “de-risk our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business.” He further mentioned that the company has taken steps to lessen US dollar debt and is concentrating on “reducing our exposure to currency volatility.”
Similarly, MTN reported a decline in profits due to the naira’s devaluation and has unveiled a plan to restore profitability to its local division.
Airtel Africa faces fiscal challenges?
Airtel Africa reports US$89mn loss due to tax bill, despite customer growth and data usage increase. (Image source: Airtel Africa)
