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Bharti Airtel slips after Nigeria fines for poor service

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Capital Market
Last Updated : Feb 28 2014 | 11:56 PM IST

Bharti Airtel fell 0.19% to Rs 287.60 at 15:00 IST on BSE after Nigeria's telecoms regulator fined the company for poor service quality in January 2014.

Nigerian Communications Commission (NCC) issued the official statement on 24 February 2014.

Meanwhile, the BSE Sensex was up 114.11 points, or 0.54%, to 21,101.10.

On BSE, so far 1.99 lakh shares were traded in the counter, compared with an average volume of 3.29 lakh shares in the past one quarter.

The stock hit a high of Rs 292.15 and a low of Rs 283.70 so far during the day. The stock hit a 52-week high of Rs 373.50 on 1 November 2013. The stock hit a 52-week low of Rs 266.95 on 5 April 2013.

The stock had underperformed the market over the past one month till 26 February 2014, sliding 8.03% compared with the Sensex's 0.69% fall. The scrip had also underperformed the market in past one quarter, falling 12.03% as against Sensex's 2.75% rise.

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The large-cap company has an equity capital of Rs 1998.70 crore. Face value per share is Rs 5.

NCC fined mobile operators MTN, Airtel and Globacom a combined 647.5 million naira and banned them from selling SIM cards in March due to poor service, it said on Thursday, 27 February 2014.

South Africa's MTN and Airtel, which is owned by Bharti Airtel, were each fined 185 million naira, while Globacom was fined 277.5 million naira, the Nigerian Communications Commission (NCC) said in a statement.

The NCC will charge each company 2.5 million naira for every day the fine is not paid after 7 March 2014, it said. Apart from the fine, all the three operators were barred by NCC from selling new SIM cards throughout the month of March 2014, with effect from 1 March to 31 March.

The penalties were imposed because the operators had failed to meet key performance indicators (KPIs) and poor quality of service for the month of January 2014, the NCC said.

On a consolidated basis, Bharti Airtel's net profit surged 115.1% to Rs 610.20 crore on 13.3% growth in net sales to Rs 21938.50 crore in Q3 December 2013 over Q3 December 2012.

Bharti Airtel is a leading global telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 4 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Bharti Airtel had over 289 million customers across its operations at the end of January 2013.

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First Published: Feb 28 2014 | 3:10 PM IST

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