Despite gaining 1.6 million new subscribers, Airtel's revenue in Nigeria sunk

Airtel Africa’s latest 2024 earnings report paints two very different pictures. Across most of its markets, the telecom giant is growing, making more money, and expanding its mobile money business. But in Nigeria—its biggest market—it’s bleeding cash.

In just nine months, Airtel Nigeria’s revenue plunged from $1.23 billion to $738 million, a 40.3% drop that wiped out half a billion dollars. And the wildest part is this happened despite Airtel Nigeria adding 1.6 million new subscribers and seeing data usage per customer jump by 37.2%.

So how does a telecom company gain users but lose that much revenue?

Blame it on the Naira.

Nigeria’s currency collapse is the main culprit, at least according to Airtel. The naira crashed from ₦677/$1 to ₦1,532/$1 in nine months, wiping out the company's revenue gains in dollar terms.

Voice revenue in Nigeria fell 46.3% (from $586M in 2023 to $315M), data revenue dropped 36.3% (from $539M to $344M), and even inter-segment revenue took a hit. Meanwhile, operating costs soared, with diesel prices up 60% and inflation squeezing Airtel's bottom line. Airtel Nigeria’s EBITDA also dropped 46.4% in reported currency, dragging down Airtel Africa’s overall earnings.

And it’s not just Airtel that's feeling burnt. MTN Nigeria also reported massive losses, including ₦656.4 billion in forex losses.

But when we look at East African markets like Malawi and Zambia, where Airtel is also dealing with currency devaluation, it's a different story. In this region, revenue jumped by $140 million, reaching $1.367 billion. The same trend played out in Francophone Africa (Gabon, Chad, Republic of Congo), where revenue grew 6.1% to $968 million. Still, across all markets, mobile services revenue dropped 8.8%, from $3.37 billion to $3.07 billion.

Meanwhile, back in Nigeria, telcos including Airtel pushed for a tariff hike to help them recover, and the Nigerian Communications Commission (NCC) approved a 50% increase in January 2025. Following suit, Airtel Nigeria raised voice and data tariffs by 50%, with SMS charges rising from ₦4 to ₦6.

But price hikes alone may not be enough to fix a crumbling currency.

While Airtel Africa says it's pushing ahead with a $456 million network expansion investment in the continent and plans a $100 million share buyback to reassure investors, it remains to be seen if these measures would stop the bleeding.