By Ayomide Otitoju
MTN Nigeria Communications Plc and Airtel Nigeria collectively earned about N3.67 trillion from their data and voice services in the first half of 2024, according to an analysis of their financial results.
MTN, Nigeria’s largest telecom operator with nearly 80 million subscribers, reported a total revenue of N1.27 trillion for the first six months of the year, driven primarily by a surge in data service demand. The company’s data revenue increased by 55 per cent, reaching N726.6 billion, up from N469.7 billion in the same period in 2023. Voice service revenue also saw a boost, rising to N541.3 billion from N474.1 billion year-on-year. MTN attributed this growth to improvements in service quality and strong data demand, along with price optimization strategies implemented in late 2023.
Meanwhile, Airtel Nigeria, with over 60 million subscribers, posted $229 million in revenue for the quarter ending June 30, 2024, comprising $112 million from voice services and $117 million from data services. Although voice revenue fell by 55.8 per cent compared to $254 million in the same quarter last year, it increased by 21.6 per cent in constant currency terms. Data revenue also declined by 48.6 per cent from $228 million, but constant currency figures revealed a 41.3 per cent growth, indicating increasing demand for internet services.
For the full year ending March 31, 2024, Airtel recorded $711 million in voice revenue and $654 million in data revenue, bringing its total for the year to $1.594 billion. When converted to naira at an exchange rate of N1,500/$1, Airtel’s six-month revenue amounted to N2.4 trillion. Combined with MTN’s revenue, both companies generated a total of N3.67 trillion from data and voice services in the first half of 2024.
The two telecom giants continue to capitalize on Nigeria’s expanding digital economy, but they face rising operational costs due to the weakening naira. Diesel consumption is a major expense, with industry estimates showing that telecom operators consume over 50 million liters of diesel monthly to power their infrastructure. Both MTN and Airtel spend billions of naira on fuel, with Airtel reporting monthly diesel costs of N28 billion and MTN incurring over N30 billion in monthly expenses to power its 25,000 base stations.
In response to escalating fuel prices—averaging N1,426.09 per liter—both companies are exploring renewable energy options such as solar, wind, and lithium batteries to mitigate costs. Despite these challenges, the sector remains profitable, though both companies reported losses for the first half of 2024. MTN posted a $519.1 billion after-tax loss, while Airtel reported an $89 million loss for its fiscal year ending in March 2024, though it managed a $31 million profit in Q2 despite $80 million in foreign exchange losses.
As Nigeria’s telecom industry evolves, MTN and Airtel are navigating a complex landscape, balancing growth in digital services with the pressures of rising operational expenses.
