Published: Fri, January 19, 2018
Research | By Raquel Erickson

Bharti Airtel's consolidated net profit drops 39% in Q3

Bharti Airtel's consolidated net profit drops 39% in Q3

Bharti Airtel reported a 39% drop in its consolidated net profit to Rs. 305.8 crore for the quarter ended December 31, mainly on account of reduction in domestic interconnection charges. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 22 per cent y-o-y in Q3 2018. During the day, it tumbled 6.72 per cent to Rs 341.75.

The company's consolidated net debt rose to Rs 91,714 crore against Rs 91,480 crore in the previous quarter.

The DTH segment assets were Rs 2,659.1 crore, up from Rs 2,590.7 crore in the previous quarter and Rs 2,399.3 crore in Q3 2017.

The total revenue of the company stood at Rs 20,319 crore for the third quarter of 2017-18 compared to Rs 23,336 crore posted during the third quarter of 2016-17.

Subscribers grew by 3.1 per cent to 1.3937 crore, up from 1.3521 crore in the previous quarter and a 10.7 per cent increase y-o-y from 1.2588 crore.

The DTH operator saw a net addition of 416,000 customers compared to 207,000 customers in the trailing quarter.

"Airtel has witnessed a revenue growth of 5.3 per cent year-on-year with a higher net revenue growth of 8.8 per cent year-on-year". It was a drop of 12.9 per cent.

Africa revenues meanwhile grew 5.6% year-on-year in constant currency terms, with mobile data traffic almost doubling to 66 billion megabytes. Consolidated EBITDA margin increased by 0.6% to 37.3% in the quarter as compared to 36.7% in the corresponding quarter a year ago. Mobile data traffic grew by more than 6 times to 110,600 crore MBs in the quarter as compared with 172,000 crore MBs in the corresponding quarter a year ago. Total minutes on network also jumped 13.1 per cent to 494,546 million on a sequential basis.

Mumbai: Bharti Airtel, the country's largest telecom operator, on Thursday reported a sharp drop in third-quarter consolidated net profit after telecom regulator Trai more than halved interconnection fees a year ago.

ARPU for the quarter remained flat at Rs 233.

Airtel India CEO Gopal Vittal did not talk about competition from Reliance Jio, Vodafone or Idea Cellular for the poor performance. "The recent announcement of reduction in worldwide termination rates will further accentuate this decline and benefit foreign operators with no commensurate benefit to customers", the statement cited Gopal Vittal, MD and CEO, India & South Asia, as saying.

Airtel India added 8.1 million mobile data customers followings its investment in mobile data capacities, partnerships with content and handset providers and focus on customer friendly innovations like data rollover.

The company said that mobile data traffic rose more than six-fold to 1,106 billion MBs in the quarter as compared with 172 billion MBs in the corresponding quarter past year.

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