Airtel Africa has reported a robust operational performance for the half-year ending September 30, 2024, revealing a 19.9 per cent revenue increase in constant currency despite a challenging economic environment marked by significant currency devaluations.

CEO Sunil Taldar acknowledged the resilience shown across Airtel Africa’s segments, stating, “The sustained operating momentum over the period is testament to our teams’ ability to execute our strategy brilliantly."

The telecom giant's customer base rose 6.1 per cent to 156.6 million, with data users growing by 10.4 per cent, now reaching 66 million.

Data usage per customer rose by 30.9 per cent to an average of 6.6 GB, driven by enhanced 4G and 5G networks and an increased smartphone penetration of 42.9 per cent.

Meanwhile, Airtel’s mobile money service showed impressive expansion, with a 13.4 per cent increase in subscribers and an annualised transaction value of $128 billion, underscoring the role of mobile money in driving financial inclusion across Africa.

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However, Airtel Africa faced significant currency-related financial impacts, particularly in Nigeria, which saw the naira devalue sharply from an exchange rate of NGN/USD 610 to NGN/USD 1,484.

This resulted in a 9.7 per cent drop in reported revenue to $2,370 million.

Despite these challenges, Airtel Africa's cost optimisation efforts led to a sequential improvement in EBITDA margins from 45.3 per cent in Q1 to 46.4 per cent in Q2, though margins overall dropped from 49.6 per cent last year to 45.8 per cent.

Profit after tax was affected by foreign exchange losses, totalling $151 million net of tax, which reduced net profit to $79 million.

Basic earnings per share (EPS) stood at 0.8 cents, up from negative 1.5 cents in the previous period, reflecting improved financial stability despite volatility. In light of this, Airtel Africa’s Board declared a 2.6 cents per share interim dividend.

During this period, Airtel made strides to localise debt, reducing foreign currency debt exposure by paying down $809 million, bringing local currency debt at OpCo level to 89 per cent.

The company also renewed its tower lease agreements for 7,100 sites, marking a 12-year extension focused on operational cost-efficiency and renewable energy.

Summing up, Taldar reinforced Airtel’s commitment to Africa’s growth potential, highlighting the region’s "young and fast-growing population, combined with low levels of SIM and banking penetration on one hand, and increasing smartphone and digital payment adoption across our existing base on the other."

As the company continues executing its strategic vision, Airtel Africa aims to further capitalise on its robust infrastructure and market growth to bridge the digital divide across Sub-Saharan Africa.