 "Bharti Airtel: Muted growth in India, Africa")
Bharti Airtel’s performance in the September quarter has been rather muted, as Africa continues to be a drag. Seasonally, the second quarter is known to be weak for the company, but the contraction in voice revenues and realisations has been far more pronounced. Bharti's consolidated revenues grew by a modest seven per cent year-on-year to Rs 22,845 crore during the second quarter. Even as the customer base improved in Africa by three per cent sequentially, average revenue per user (APRU) in voice declined six per cent and revenue per minute fell seven per cent, thanks to regulatory and seasonal factors. Africa’s revenues declined two per cent sequentially in dollar terms.
Bharti’s performance in India also remained subdued during the quarter, as seasonally this is not a strong quarter. Revenues from India’s mobile services declined almost one per cent sequentially Rs 12,634 crore during the quarter. Compared to the corresponding quarter last year, revenues from mobile services were up 11 per cent. The mobile business also saw operating margins decline by 40 basis points sequentially to 36.5 per cent, but year-on-year margins were up 300 basis points. Total revenues from India, including all the businesses, grew 12 per cent year-on-year to Rs 15,815 crore. Sequentially, revenues from India business remained flat.
Data, however, continues to be a driver of growth for the company. The sharp growth in data traffic is visible from a comparison from a year-ago period. Sequentially, both data usage (14 per cent) and data ARPU (18 per cent) is up. Mobile data revenues contribute to 14.5 per cent of India's mobile revenues against 9.4 per cent in the corresponding quarter last year. Data consumers account for 19 per cent of total customer base. Even as data realisation is down five per cent, the sharp growth in data consumers (23 per cent) is expected to drive higher volumes.
Bharti’s performance in India also remained subdued during the quarter, as seasonally this is not a strong quarter. Revenues from India’s mobile services declined almost one per cent sequentially Rs 12,634 crore during the quarter. Compared to the corresponding quarter last year, revenues from mobile services were up 11 per cent. The mobile business also saw operating margins decline by 40 basis points sequentially to 36.5 per cent, but year-on-year margins were up 300 basis points. Total revenues from India, including all the businesses, grew 12 per cent year-on-year to Rs 15,815 crore. Sequentially, revenues from India business remained flat.
Data, however, continues to be a driver of growth for the company. The sharp growth in data traffic is visible from a comparison from a year-ago period. Sequentially, both data usage (14 per cent) and data ARPU (18 per cent) is up. Mobile data revenues contribute to 14.5 per cent of India's mobile revenues against 9.4 per cent in the corresponding quarter last year. Data consumers account for 19 per cent of total customer base. Even as data realisation is down five per cent, the sharp growth in data consumers (23 per cent) is expected to drive higher volumes.