 "Bharti Airtel reports 31% less profit at Rs 1,462 cr in Q1")
The net profit of the country’s top mobile operator, Bharti Airtel, for the June quarter dipped 31 per cent to Rs 1,462 crore against Rs 2,113 crore in the corresponding quarter of the previous year, mainly on account of higher spectrum costs and adverse foreign-exchange loss due to devaluation of the Nigerian currency, naira.
During the quarter, naira was devalued 42.1 per cent, leading to a net forex losses of Rs 748 crore. Net interest costs of Rs 1,631 crore had risen from Rs 1,124 crore, largely due to higher spectrum interest costs.
During the quarter, naira was devalued 42.1 per cent, leading to a net forex losses of Rs 748 crore. Net interest costs of Rs 1,631 crore had risen from Rs 1,124 crore, largely due to higher spectrum interest costs.
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Airtel said profit before tax and exceptional items was Rs 2,847 crore against Rs 2,505 crore in the year-ago quarter, an increase of 13.6 per cent. Total revenues rose 7.9 per cent to Rs 25,546 crore against Rs 23,671 crore last year.
On a consolidated basis, mobile data revenues increased 34.1 per cent to Rs 4,640 crore against Rs 3,459 crore last year. Mobile data revenues now represent 18.2 per cent of the total revenues against 14.6 per cent in the year-ago period.
In Africa, Airtel has sold operations in Sierra Leone and Burkina Faso to Orange. Both transactions have been settled. Tower assets have been divested in 11 countries, of which nine deals have been completed and those in the remaining two countries will be closed shortly. Also, divestment of stake in in TTCL (Tanzania) has completed. The net proceeds from all these divestment is about $3.25 billion, helping it retire a significant part of its debt. The total debt on account of Africa is currently $5.25 bn. The annual earnings before interest, taxes, depreciation and amortisation) for Africa is currently about $800 mn.
Overall, the company’s consolidated net debt, excluding the deferred payment liabilities to the department of telecommunications and finance lease obligations has decreased to $6,891 mn from $7,451 mn in the previous quarter.
Regarding India, the telco witnessed growth of 8.3 per cent in total minutes to 314.8 billion against 290.8 billion last year, though voice realisation per minute dropped 1.44 paise to 33.49 paise against 34.93 paise last year. India revenues for the first quarter at Rs 19,155 crore grew 10.3 per cent.
Airtel said in India, it continued to accelerated mobile data growth with 58.9 million data customers (23 per cent of total customers) as on June 30, a growth of 19.1 per cent against 49.5 mn (21.4 per cent of total customers) at the corresponding quarter's end last year.
Mobile data revenue during the quarter grew 35.1 per cent to Rs 3,525 crore over the corresponding quarter last year. Analysts had predicted a slower growth rate in data. Data average revenue per user has moved up Rs 21 to Rs 202 in Q1’17, led by 28.1 per cent increase in usage per customer. Mobile data revenues now contribute to 23.7 per cent of mobile India revenues vis-à-vis 19.2 per cent in the year-ago quarter.
Africa revenues, normalised to divestment of operating unit and tower assets grew 3.8 per cent (reported: $935 mn against $916 mn in the year-ago period).