Leading telcos generate N3.67tn in H1 2024 as voice revenue declines
By Ralph Tathagata
Recent analysis of the financial results of MTN Nigeria and Airtel Nigeria has shown collective revenue of about N3.67tn from their data and voice services in the first half of 2024.
While MTN, the country’s biggest telecom operator with almost 80 million subscribers, reported combined revenue of N1.27tn for the first six months of 2024, driven by a significant uptick in data services, Airtel, with over 60 million subscribers, recorded $229m in revenue for the quarter ended June 30, 2024. Airtel’s revenue comprises $112m from voice services and $117m from data services.
MTN’s revenue includes N726.6bn from data services, reflecting a 55 per cent increase from N469.7bn in the same period in 2023. Its voice services also grew, with revenue reaching N541.3bn, up from N474.1bn year-on-year. MTN attributed this growth to enhancements in service quality and the robust demand for data services.
For Airtel, however, its financial report showed that though its voice revenue experienced a significant decline of 55.8 per cent from $254m in the same quarter last year, that of 2024 increased by 21.6 per cent in constant currency terms. Its revenue also declined by 48.6 per cent from $228m in the previous year, but constant currency figures showed a robust growth of 41.3 per cent, indicating rising demand for internet services.
For the full year ending March 31, 2024, analysis of the report showed that Airtel achieved $711m in voice revenue and $654m in data revenue, bringing its total revenue across both periods to $1.594bn.
While MTN raked in N1.27tn, Airtel generated N2.4tn when converted into naira at the exchange rate of N1500/$1, resulting in total revenue of approximately N3.67tn from data and voice services over the half year period.
It would be recalled that telecom operators are facing growing challenges, primarily due to the weakening naira against the US dollar, which has severely impacted operational costs. MTN Nigeria and Airtel Africa budget a significant portion of their revenues to diesel consumption, which now necessitates a shift towards renewable energy sources, such as solar, wind, and lithium batteries.
While Airtel is said to be spending approximately N28bn monthly on diesel, a recent report revealed that MTN and Airtel collectively spent about N570bn in the first eight months (January to August) of 2024, due to rising fuel costs, with diesel prices averaging N1, 426.09 per liter. The report also revealed that MTN currently incurs over N30bn in monthly diesel expenses to power its approximately 25,000 base stations.
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