Airtel Africa has reported significant financial gains, driven by a surge in data consumption, according to its latest financial report.
The telecom giant posted a revenue of $899 million for the first quarter of 2020, marking a 15% increase compared to the $781 million it recorded in March 2019. Airtel Africa, a subsidiary of Bharti Airtel from India, operates across 14 African countries, offering services such as voice, data, tower infrastructure, and mobile money to over 110 million customers.
Voice services remain the largest contributor to Airtel Africa’s revenue. For Q1 2020, voice revenue reached $510 million, reflecting a 5.9% year-on-year growth. Nigeria, its largest market, accounted for $234 million of this amount, with voice revenue in the country rising by 16%. Other regions, such as Francophone Africa and East Africa, experienced slower growth in voice revenue at 10.3% and 6.7%, respectively.
Despite the pandemic’s economic impact and lockdown measures, which have influenced customer behavior and disposable income, Airtel’s data services have shown notable resilience. Data revenue soared by 35.6% in Q1 2020, bringing in $253 million as more customers shifted to digital activities like remote work.
Since December 2019, Airtel has added 2.6 million new data subscribers, increasing its active data user base to 35.4 million. This growth is particularly strong in Nigeria, where the company has 16.7 million active data subscribers, nearly half of its total. Data revenue from Nigeria rose to $120 million in March 2020, compared to $80 million in the previous year.
Airtel Africa’s late entry into Nigeria’s 4G market in 2018—two years after competitors like MTN Nigeria, Glo, and 9Mobile—initially hindered its progress. However, the company has made remarkable strides, with active data subscribers growing by 109.5% over the past three years.
Looking ahead, Airtel aims to sustain its momentum in data services despite the challenges posed by the pandemic. The company has committed to investing $650 million to $700 million annually in data infrastructure over the next year to meet growing demand and further drive revenue growth.
This strategic focus on data expansion positions Airtel Africa to capitalize on shifting consumer preferences and strengthen its presence in key markets.
