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.
