Due to the blocking of SIM cards as a result of the National Identification Number (NIN) registration requirement, Airtel Africa’s Nigerian operations reported a significant revenue loss of $110 million.
The firm also disclosed that during the reviewed year, it lost $82 million due to the naira’s depreciation. According to Airtel, a 1% devaluation would have a negative impact on revenues of $22 million, EBITDA of $12 million, and finance costs of $7 million. Airtel reports its year-end on March 31.
With reported currency data showing a 13.3% increase to $2,128 million and an even more spectacular 20.3% growth in constant currency, Airtel Africa’s Nigerian operations originally displayed encouraging revenue growth.
Due to a noticeable increase in the client base, voice and data services both made a major contribution to the revenue rise.
9.0% was the outstanding growth rate for the entire customer base, but 17.3% was even more impressive for the data client base. The Average Revenue Per User (ARPU) increased by 7.0% as a result of the expansion and increased data and other revenue.
The adverse impact of the barred SIM cards on outgoing calls had a considerable effect on voice revenue.
Only 6.4 million (47%) of the initially impacted 13.6 million consumers have subsequently submitted their NINs, and only 3.5 million (26%) have been properly confirmed and unblocked.
For the fiscal year that ends on March 31, 2023, the company projects that this tragic circumstance will have resulted in a stunning revenue loss of over $110 million. As a result, Airtel Africa’s revenue growth in Nigeria took a significant 6% hit.
Despite this significant revenue loss, data revenue displayed resilience by increasing by 27.8% in constant currency.
This growth was propelled by the expansion of the data customer base, which grew by 17.3%, and a remarkable 9.9% increase in data ARPU.