Airtel Overtakes Dangote Cement on List of Nigeria's Most Valuable Companies
- Airtel Africa again reclaims its number-one spot as the most valuable Nigerian company after six months
- Its share price gained 10% to close at N1,540 on Tuesday, the last day of November, from an earlier N1,400
- The company is now worth N5.79 trillion after its market cap improved by N530 billion due to a share price gain
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Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
Airtel Africa Plc became the largest riser at the close of trading on Tuesday, October 31, 2023.
The company reclaimed its title as the most valuable business on the Nigerian stock market, which it had lost for over six months.
The telecommunications business overthrew Dangote Cement Plc as the market capitalization surged by N530 billion to hit N5.79 trillion.
The largest cement manufacturer in Africa is valued at N5.59 trillion, with a closing share price of N328.
Share price increases, but profit declined
As the biggest gainer, Airtel Africa saw a 10% increase in share price to N1,540 by close of business on Tuesday, October 31, 2023, from N1,400 the previous day
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Meanwhile, in a recent half-year financial report that ended on September 30, 2023, the company reported a loss of $13 million after taxes.
It stated that this loss was driven largely by a foreign exchange loss and devaluation of the Nigerian naira in June 2023.
The third-most valued corporation is MTN Nigeria Communications Plc, with a share price of N246 and a market value of N5.16 trillion.
Recall that Legit.ng reported that Dangote Cement emerged as the most valuable company in Nigeria by market capitalization as of the end of July 2023.
According to data from the Nigerian exchange, Dangote Cement overtook telecom giant MTN, which occupied the top spot in the previous month.
Charles Abuede, a financial analyst said Airtel Africa's report of a loss after tax of $13m in its half-year 2024 financials was driven largely by a foreign exchange loss of $471m recorded in finance cost before tax and $317m after tax because of the devaluation of the Nigerian naira in June 2023.
According to him, this impact has been classified as an exceptional item for the telecoms firm.
However, he said Airtel Africa’s share price has appreciated by 20% in under 2 days since the publication of the result on the exchange and this underpins improved investors’ confidence in the stock.
He said:
When we consider the company’s total customer base of 147.7 million, the continued rise of mobile data p*netration, and the acceptance of the mobile money unit, Airtel looks sound for the long term when we put the recent resilient operating performance across regions.
NCC announces new rates for CUG Calls, text on MTN, Glo, Airtel, 9mobile
The Nigerian Communications Commission (NCC) announced changes for Closed User Group (CUG) call and data services, Legit.ng reported.
Starting November 1, 2023, Nigerian telecommunication companies are expected to charge a uniform call rate of N50 per minute for CUG services.
Service providers such as MTN, Glo, Airtel, and 9mobile offer CUG services that allow enrolled customer group members to enjoy lower call rates and free on-net calls by paying monthly access fees.
Source: Legit.ng
