Airtel Reports $344 Million Revenue Loss in Data Sales
Airtel Nigeria’s data revenue dropped to $344 million for the nine months ending December 31, 2024, a decline from $539 million in the same period the previous year.
Despite a 37.2% increase in data usage per customer—rising from 6.2GB to 8.4GB per month—the company struggled to convert this higher demand into greater revenue, according to its financial report released on Tuesday.
With a subscriber base of 56.6 million, the second-largest telecom operator in the country implemented a data tariff hike this week after receiving approval from the Nigerian Communications Commission for a 50% industry-wide tariff adjustment.
This adjustment aligns Airtel with its main competitors, like MTN, which also increased prices for both calls and data services. The company expects this tariff change to help boost its revenue recovery in the coming months.
“The price hike, which was crucial for the sustainability and growth of the industry, will allow us to continue investing in network infrastructure, expanding coverage, and offering better products and services that meet our customers’ changing needs,” said Airtel Nigeria’s CEO, Dinesh Balsingh, in a statement shared with The PUNCH in January.
While Airtel’s financial performance has been supported by a strong demand for mobile data, reflected in a 31.4% rise in average revenue per user (ARPU), the depreciation of the naira has affected its reported revenue. The revised tariff structure is expected to help stabilize earnings in the coming quarters.
The company also saw an 8.2% increase in the number of data customers, alongside the growth in ARPU.
“Data revenue increased by 44.3% in constant currency, driven by solid growth in both the number of data customers and ARPU, which rose by 8.2% and 31.4%, respectively,” the report noted.
Additionally, smartphone users are consuming more data, with average usage climbing to 11.2GB per month, up from 8.8GB in the previous period.
Telecom operators in Nigeria have been facing growing financial challenges due to an 11-year delay in tariff adjustments. This prolonged price stagnation has resulted in an estimated $11.3 billion revenue shortfall between 2022 and 2026, largely due to the naira’s depreciation and rising operational costs.
The inability to adjust tariffs in line with the economic situation has significantly reduced earnings, as operators deal with foreign exchange losses and high inflation, despite nominal revenue growth.
