Bharti Airtel earnings grow by 7pc


Bharti Airtel Limited consolidated revenues for the second quarter ended September 30, 2015 grew by 6.6 per cent at Rs23,836.

Managing director and chief executive officer India & South Asia Mr. Gopal Vittal  said Airtel’s s revenue growth in India has accelerated to 13.3percent on an underlying basis, the highest in the last 12 quarters.

Mr Vittal said the firm’s smaller businesses – home broadband, DTH and business segment all continued to perform strongly as mobile data revenues grew by 60percent.

“With the commercial launch of high speed 4G services across 334 towns and roll-out of 3G services in our gap circles, we are now best positioned in the industry to leverage the fast growing data market,”he said

And Airtel Africa managing director and chief executive officer Mr. Christian de Faria said performance has improved, with underlying revenue growth of 5.1percent in the second quarter, the highest in the last 4 quarters.

Data revenue has grown by 40.6percent while strong demand is being witnessed both in voice and data with consumption increasing by 19.5percent and 104.5percent respectively.

He said consistent net additions have expanded customer base to more than 80 million with growth of 13.3percent.

“In first half of the year, we have divested tower assets of $ 1.7 billion”. Summary of the Consolidated Statement of Income – represents consolidated Statement of Income as per International Financial Reporting Standards (IFRS).” He said

In constant currency terms, Africa revenues adjusted for the impact of divestment of tower assets grew by 5.1% Y-o-Y (4.0percent reported Y-o-Y).

Data revenues at $ 138million grew by 40.6percent Y-o-Y, led by increase in Data customer base by 29.4percent and traffic by 104.5percent.

Data ARPU increased to $ 3.4 from $ 3.1 in the corresponding quarter last year.

Data revenues contribute to 13.5% of overall Africa revenues vis-à-vis 10.1% in the corresponding quarter last year. According to company’s report the consolidated revenues grew on an underlying basis, adjusted for India termination rates reduction and Africa tower assets divestment over the corresponding quarter last year.

It says consolidated Mobile data revenues at Rs 3,806 crore grew by 49.8percent Y-o-Y, uplifted by data traffic growth of 76.3percent.

Adjusted for the impact in reduction of termination rates, India revenues growth accelerated to 13.3percent Y-o-Y (10.3percent reported Y-o-Y).

On an underlying basis, Mobile revenues grew by 12.3%, Airtel business (B2B) by 19.0% and Digital TV by 22.6% Y-o-Y. Mobile Data revenue at Rs 2,893 crore registered a growth of 60.3% Y-o-Y in India, led by increase in the Data customer base by 27.2% and traffic by 69.9%.

Data ARPU has moved up by Rs 42 (Y-o-Y) to Rs 193 in Q2 16, led by 35.9% increase in data usage per customer.

Mobile Data revenues contribute to 21.5% of Mobile India revenues vis-à-vis 14.5% in the corresponding quarter last year.

The resultant consolidated EBIT of Rs 4,011 crore represents a Y-o-Y growth of 4.1%, impacted by higher spectrum amortization expense in India post recent auctions.

Net interest costs of Rs 1,053 crore have risen from Rs 687 crore in the same quarter last year.

Adverse currency movements resulted in forex and derivative losses of Rs 809 crore, significantly higher than Rs 219 crore in the corresponding quarter last year.

After accounting for exceptional items (net gains of Rs 756 crore), the Consolidated Net Income growing by 10.1% Y-o-Y to Rs 1,523 crore.

The company’s consolidated net debt excluding the deferred payment liabilities to the DOT and finance lease obligations is at $ 7,689million.