In the first half of 2024, MTN Nigeria Communications Plc and Airtel Nigeria together generated a remarkable total of approximately N3.67 trillion from their data and voice services, a comprehensive analysis of their financial results has revealed.
MTN Nigeria, recognized as the largest telecom operator in the country, boasts nearly 80 million subscribers. In this reporting period, the company recorded an impressive revenue of N1.27 trillion.
This significant surge in revenue was primarily driven by the robust performance of its data services, which alone contributed N726.6 billion—a staggering 55 percent increase compared to the N469.7 billion reported during the same timeframe in 2023. Additionally, the voice services segment also experienced growth, with revenue climbing to N541.3 billion, up from N474.1 billion year-on-year.
The growth in MTN’s revenue can be attributed to several key factors, including enhanced service quality and a marked increase in consumer demand for data services. Moreover, price optimization strategies implemented in late 2023 played a crucial role in boosting overall revenue figures.
On the other hand, Airtel Nigeria, which serves over 60 million subscribers, reported a revenue of $229 million for the quarter ending on June 30, 2024. This revenue comprised $112 million from voice services and $117 million from data services. Despite facing a significant decline in voice revenue—down 55.8 percent from $254 million in the same quarter of 2023—Airtel managed to report a 21.6 percent increase in constant currency terms. Similarly, data revenue also saw a drop of 48.6 percent from $228 million in the previous year; however, constant currency figures indicated a noteworthy 41.3 percent rise, highlighting the growing demand for internet services among consumers.
For the fiscal year concluding on March 31, 2024, Airtel reported $711 million in voice revenue and $654 million in data revenue, totaling approximately $1.594 billion. When this revenue is converted into naira at an exchange rate of N1500 per dollar, Airtel’s contributions in the first six months of the year amount to around N2.4 trillion. Together, the revenue generated by MTN and Airtel from their data and voice services reached a substantial N3.67 trillion.
Both telecom giants are capitalizing on the expanding digital economy in Nigeria, which continues to drive demand for digital services.
However, they are not without their challenges. The devaluation of the naira against the dollar has significantly inflated operational costs for these companies. Telecom operators, in particular, face high expenditures on diesel, consuming over 50 million liters monthly to power their infrastructure.
In response to these rising costs, many operators are making the transition to cleaner energy solutions in an effort to reduce expenses.
