Airtel Africa hits $2m profit in nine months

Alex Omenye
Alex Omenye

Bisola David

The financial results for the nine months that ended on December 31, 2023, have been made public by Airtel Africa Plc.

The Times reported that compared to the $523 million reported in the same time of the previous fiscal year, the group’s profit after tax in 9M 2024 was $2 million, a 99.6% year-over-year decrease.

The company’s overall financing costs for 9M 2024, which came to $1.238 billion, are the reason for the reduction in the profit profile of the business. Notably, the naira depreciated from N461/$ in June 2023 to $952/$ in December 2023, accounting for $748 million of the overall cost.

A loss of $447 million was caused by the initial depreciation, which brought the exchange rate down to N777/$ in June 2023 (Q1 2024). A further $301 million was lost as a result of the Naira’s devaluation to N952/$.

The group’s financing costs in 9M 2024 were additionally impacted by the depreciation of the Malawian Kwacha in November 2023.

The post-tax profit for the nine months ended December 31, 2023, could have been $537 million if the effects of the currency depreciation were taken out.

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