Bharti Airtel’s Fourth-Quarter Revenue Falls Short Due to Nigeria’s Currency Devaluation


Nigeria’s Bharti Airtel, an Indian telecom giant, announced lower-than-expected fourth-quarter revenue on Tuesday, attributing the decline to currency devaluation in Africa, particularly affecting its operations in Nigeria.

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The telecom operator reported consolidated revenue from operations of 375.99 billion rupees for the quarter ending March 31, a 4.4% increase compared to the previous year. However, this fell short of analysts’ average estimates of 388.49 billion rupees. The company incurred an exceptional charge of 24.56 billion rupees due to currency devaluation in its African subsidiaries.

In Africa, Airtel’s mobile services revenue, which is the second-largest contributor to its total revenue, declined by nearly 16% year-on-year to 92.93 billion rupees. This was largely influenced by the devaluation of African currencies, notably the Nigerian Naira.

On the other hand, its India business, the largest segment, saw revenue growth of nearly 13%, driven by significant additions to its 4G/5G customer base.

Airtel’s 4G/5G data customers increased by 28.6 million compared to the previous year, contributing to 72% of its overall mobile customer base.

The average revenue per user (ARPU), a critical financial metric, rose to 209 rupees from 193 rupees a year earlier, demonstrating Airtel’s leadership in this aspect among its competitors.

In terms of market share, Airtel holds a 29.57% share, trailing behind rival Jio, which commands 52.05%, while Vodafone Idea stands at 13.82%, as per data from the Telecom Regulatory Authority of India.

Despite the revenue challenges, Airtel reported a 4.4% increase in profit before exceptional items and taxes to 52.34 billion rupees.

Airtel’s unit Bharti Hexacom also posted a 10.4% year-on-year rise in fourth-quarter profit, driven by an increase in average revenue per user.

The company’s shares settled slightly lower ahead of the results, although they had risen by 19% during the quarter, outperforming the benchmark Nifty 50 index, which saw a nearly 3% increase.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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