Airtel Africa has demonstrated remarkable growth despite the challenges posed by the Covid-19 pandemic, as evidenced by its 9-month financial report for the period ending December 31, 2020. The company saw its revenue increase by 13.8%, reaching $2.87 billion.
Nigeria, Airtel’s largest market, contributed nearly half of the total revenue, with the East Africa and Francophone regions also performing strongly. This growth led to an operating profit of $800 million, representing a 21% year-on-year increase. However, profit after tax decreased by 21% to $261 million, which the company attributed to one-off items from the same period the previous year.
Growth in Data Revenue
While voice services remain a major revenue contributor for telecom companies across Africa, growth in this area has slowed. Airtel’s voice revenue grew by only 5%, while data revenue soared by 24.4% and mobile money revenue rose by 27.8%. Data is increasingly seen as a key growth area for telecom operators, and Airtel Africa has capitalized on this shift.
For the period ending December 2020, Airtel’s data revenue was $842 million, up from $677 million in 2019. The increase is largely attributed to the company’s significant 4G network expansion. In Nigeria, 82% of its network sites are now on 4G, while 72% of sites in East Africa have also transitioned to 4G.
This infrastructure expansion resulted in a 23.6% increase in data customers in Nigeria and a 49.2% rise in data usage per customer. In East Africa, the number of data customers grew by 21.2%, with average revenue per user rising by 2%. While specific numbers weren’t disclosed, it’s estimated that Airtel Nigeria’s data subscribers increased from 15.2 million in 2019 to about 18.8 million.
Challenges from Nigeria’s SIM Registration Rules
Despite its impressive performance, Airtel Africa anticipates challenges ahead, particularly in Nigeria. The Nigerian government’s directive requiring all mobile subscribers to provide National Identification Numbers (NINs) for SIM registration has impacted growth prospects.
As a result of the new regulation, telecom companies are prohibited from selling new SIM cards until sufficient progress is made on customer registrations. Airtel Nigeria currently has 44.4 million users, of which 21 million (47%) have submitted NIN information. The company noted that completing the verification process with the National Identity Management Commission (NIMC) could delay the growth of its customer base in Nigeria. Although the company expects this to affect growth in the short term, the overall impact remains uncertain.
