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Nigeria remains Airtel Africa’s lifeline as CBN devaluation impacts revenue

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Nigeria remains the top revenue source for telecommunications company, Airtel Africa, as earnings from the market surpasses that of its East Africa turnover.

In its financials seen by Ripples Nigeria, Airtel Africa generated $1.11 million in the quarter ended June 31, 2021, against about $851,000 it reported as revenue for the same period in 2020.

Nigeria accounted for 32.8 percent of the turnover, surpassing East Africa which contributed 32.8 percent to the revenue, while Francophone Africa held 24.9 percent.

However, the Central Bank of Nigeria’s currency devaluation, as well as that of Zambia had an impact on the earnings, “Revenue grew by 30.7% to $1,112m in reported currency, driven by constant currency growth of 33.1% partially offset by currency devaluations, mainly in the Nigerian naira (6%) and Zambian kwacha (24.2%).\

READ ALSO: Pressure eases as Naira nears level before CBN hammer on BDCs

“in turn partially offset by appreciation in the Central African franc (6.6%) and Ugandan shilling (5.3%).” Airtel stated in its financial statement for the period ended June 31, 2021.

Meanwhile, a breakdown of the total revenue showed Airtel Africa’s voice earnings grew by 23.8 percent in reported currency to about $562,000 in the period ended June 2021, topping the $454,000 it generated year-on-year.

Also, Data revenue rose by 34.5 percent during the period under review, rising to $356,000, against the $265,000 it recorded in the corresponding period.

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