MTN and Airtel, two leading telecommunication giants in Nigeria, have raked in not less than N3.6tn through Data and Voice services.
According to the analysis of their financial results, MTN Nigeria Communications Plc and Airtel Nigeria collectively generated N3.6tn in the first half of 2024,
MTN, the country’s biggest telecom operator with almost 80 million subscribers, reported a combined revenue of N1.27tn for the first six months of 2024, driven by a significant uptick in data services.
The revenue includes N726.6bn from data services, reflecting a 55% increase from N469.7bn in the same period in 2023. Voice services also grew, with revenue reaching N541.3bn, up from N474.1bn year-on-year.
The operator, which has been serving Nigeria’s vast population for two decades, attributed this growth to enhancements in service quality and the robust demand for data services. Price optimization strategies implemented in Q4 2023 further fueled this growth.
Airtel, with over 60 million subscribers, recorded $229m in revenue for the quarter ended June 30, 2024. This revenue comprises $112m from voice services and $117m from data services.
Although voice revenue experienced a significant decline of 55.8% from $254m in the same quarter last year, it increased by 21.6% in constant currency terms, its financial report showed.
Furthermore, data revenue also declined by 48.6% from $228m in the previous year, but constant currency figures showed a robust growth of 41.3%, 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.
When converting the total revenue generated by Airtel Nigeria into naira, using the exchange rate of N1500/$1, the operator generated N2.4tn in six months.
The combined revenue figures for both companies indicated that Airtel generated N2.4tn, while MTN raked in N1.27tn, resulting in a total revenue of approximately N3.67tn from data and voice services over the six months.
The duo are adeptly navigating a dynamic telecommunications landscape, capitalizing on the growing demand for digital services amid Nigeria’s expanding digital economy.
However, the companies face significant challenges, primarily due to the weakening naira against the dollar, which has severely impacted operational costs.
It is important to note that both MTN Nigeria and Airtel Africa, are listed on the Nigerian Stock Exchange, but budget a significant portion of their revenues to diesel consumption.
