Despite impact of devaluation, Airtel records growth in mobile money services
Airtel Africa Plc has recorded applauding growth in the adoption of its mobile money services despite the impact of the Naira devaluation in its Nigerian operations.
This was demonstrated in its year ended March 31, 2024 results.
According to the results sighted by NewsDirect, the company recorded growth in mobile money subscriber by 20.7 percent reflecting its continued investment into distribution to drive increased financial inclusion across our markets.
Transaction value increased also by 38.2 percent in constant currency with annual transaction value of over $112bn in reported currency.
Commenting on the results, Chief executive officer of Airtel Africa, Olusegun Ogunsanya said, “The consistent deployment of our ‘Win with’ strategy supported the acceleration in constant currency revenue growth over the recent quarters which has reduced the impact of currency headwinds faced across most of our markets. This strong revenue performance is a reflection not only of the opportunity that is inherent across our markets, but also the resilience of our affordable offerings despite the inflationary pressure many of our customers have experienced.
“Facilitating this growth has been, and will remain, fundamental to our performance. The investment in our distribution to catalyse growth, and the technology required to support this growth has been key. Furthermore, our rigorous approach to de-risking our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business.
“Key initiatives include the reduction of US dollar debt across the business and the accumulation of cash at the HoldCo level to fully cover the outstanding debt due. We will continue to focus on reducing our exposure to currency volatility. At the beginning of March, we launched our first buyback programme reflecting the strength of our financial position.
“The growth opportunity that exists across our markets remains compelling, and we are well positioned to deliver against this opportunity. We will continue to focus on margin improvement from the recent level as we progress through the year.
“I want to say a particular thank you to our customers, partners, governments and regulators for their support and our employees for their unrelenting contribution to the business. Our purpose of transforming lives across Africa will continue to be our highest priority.”
Across the group mobile services revenue grew by 19.4 percent in constant currency, driven by voice revenue growth of 11.9 percent and data revenue growth of 29.2 percent. Mobile Money revenue grew by 32.8 percent in constant currency, with a continued strong performance in East Africa.
The company was however largely affected by the devaluation of the Naira and instability of Nigeria’s foreign exchange market.
The company posted a Loss after tax of $89 million, resulting in a $549 million exceptional loss net of tax following the Nigerian naira devaluation in June 2023 and Q4’24, and the Malawian kwacha devaluation in November 2023.
The telecommunications giant has however pledged continued investment in Nigeria stating that it is to facilitate growth, drive continued digitalisation across the country, facilitate economic progress and transform lives across Nigeria.
