MTN Nigeria Communications Plc and Airtel Nigeria collectively generated about N3.67 trillion from data and voice services in the first half of 2024, according to an analysis of their financial results.
MTN, the largest telecom operator in Nigeria with nearly 80 million subscribers, reported a revenue of N1.27 trillion for the first six months of the year. A significant portion of this came from data services, which saw a 55% rise to N726.6 billion, compared to N469.7 billion in the same period in 2023. Voice services also contributed N541.3 billion, up from N474.1 billion year-on-year.
MTN attributed this growth to improvements in service quality and a heightened demand for data services. The company’s price optimization strategies introduced in the fourth quarter of 2023 also played a key role in its revenue surge.
Airtel, with over 60 million subscribers, reported $229 million in revenue for the quarter ending June 30, 2024. This included $112 million from voice services and $117 million from data services. Despite a 55.8% decline in voice revenue from the previous year, Airtel saw a 21.6% increase in voice revenue when adjusted for constant currency. Data revenue also declined by 48.6%, but in constant currency terms, it grew 41.3%, reflecting the rising demand for internet services.
For the fiscal year ending March 31, 2024, Airtel generated $711 million in voice revenue and $654 million in data revenue, bringing its total revenue across both periods to $1.594 billion. Using an exchange rate of N1,500/$1, Airtel’s revenue for the first half of 2024 equated to about N2.4 trillion.
The combined revenue for MTN and Airtel amounted to N3.67 trillion over six months, highlighting the companies’ ability to capitalize on the growing demand for digital services in Nigeria’s expanding digital economy.
However, both telecom giants face operational challenges due to the weakening naira against the dollar, which has significantly increased costs, particularly for diesel consumption. Industry estimates suggest telecom operators consume over 50 million liters of diesel monthly to fuel their infrastructure.
Airtel Nigeria’s Director of Corporate Communications, Femi Adeniran, disclosed that the company spends approximately N28 billion each month on diesel. Similarly, MTN, with around 25,000 base stations, incurs over N30 billion in monthly diesel expenses. Between January and August 2024, the two companies collectively spent about N570 billion due to rising fuel costs, with diesel averaging N1,426.09 per liter.
Despite these challenges, both companies are exploring renewable energy alternatives such as solar and wind energy, alongside lithium batteries, to mitigate the impact of rising fuel costs. While Airtel posted a $31 million profit in Q2 2024, it also faced $80 million in foreign exchange losses, which contributed to an overall $89 million loss for the fiscal year ending March 2024. MTN, meanwhile, reported a $519.1 billion loss after tax for the same period.
