Airtel Africa loses $471m, cause mainly by forex unification
By Jeph Ajobaju, Chief Copy Editor
Airtel Africa suffered a foreign exchange (forex) loss of $471 million in the second quarter of 2023 (Q2 2023), as shown in its financial statement filed at the Nigerian Exchange.
The loss was caused by unification of forex rate by the Central Bank Nigeria (CBN) which pushed the rate from N460/$ in June 2022 to N790/$ in June 2023.
Airtel revenue grew 9 per cent to $1.37 billion in Q2 2023 from $1.25 billion in Q2 2022.
The company disclosed it used exchange rate of N502/$ to prepare its financial result. If the closing rate of N752/$ were used, revenues would have slumped to $1.20 billion or a 4.4 per cent decline.
Airtel Africa made a loss after tax of $151 million in Q2 2023, an 184.7 per cent decrease versus $178 million Q2 2022, driven by $570 million incurred in forex and derivative losses. It also recorded $221 million loss before tax.
Earnings per share (EPS) declined to 4.5 cents, a 204 per cent drop from 4.4 cents in Q2 2022.
The company saw its tax bill reduced on account of the naira devaluation from $119 million in Q2 2022 to $84 million in Q2 2023.
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Growth in customer base
The Airtel Group raised customer base 8.8 per cent to 143.1 million, with the Nigerian subsidiary growing 4.8 per cent. Average revenue per user (ARPU) rose 16 per cent, according to reporting by Nairametrics.
Profit after tax was negative ($151 million), driven largely by a forex loss of $471 million in finance cost before tax and $317 million after tax because of the devaluation of the naira in June 2023.
Basic EPS was also negative (4.5 cents) compared to 4.4 cents in Q2 2022, impacted by $317 million net exceptional loss on account of naira devaluation in June 2023.
The Airtel Group prepaid $450 million of external debt at HoldCo in July 2022. The remaining debt is $550 million, falling due in May 2024. Cash at the holding companies was $505 million in Q2 2023.
Airtel Africa, a telecom and mobile money service company, operates in 14 countries across West, South, Central, and East Africa.
 loss of $471 million in the second quarter of 2023 (Q2 2023), as shown){kind=link}