Bharti Airtel Profits Fall for 10th Consecutive Quarter

Published on: 8th Aug 2012

­India's Bharti Airtel has reported a 14 percent rise in its second quarter revenues, boosted by growth in mobile data services and revenues in its African markets.

The company posted revenues of Rs 19,350 crore (US$3.51 billion), but net profit plunged by 37% to Rs762 crore (US$138.2 million) compared to 1,215 crore a year ago. This also represented the 10th consecutive fall in the company's quarterly profits.

EBITDA margin at 30.2% was depressed due to the adverse regulatory and tax developments in India, enhanced market participation and planned accelerated investments in both India and Africa.

Africa revenues grew by 31.5%, driven by strong operational performance in the last year and favourable currency movements. However, economic and currency headwinds are presently evident in key markets, as a result of the eurozone crisis, lower aid and grants, rising inflation and political issues in some countries.

In a statement, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said: "Telecom revenues in India have been depressed due to hyper-competition and recent regulatory & tax developments."

"I am also pleased to see that India data pick-up is accelerating with over 38 million customers and mobile data revenues up 44%. On the African side, we are gaining market share, benefitting from the significant investments made in the last two years." he added.

The company ended the quarter with 250 million customers, a rise of 13 percent over the past year. Of the total, 194.2 million are Indian customers, and the remaining 55.8 million are based in its African operations.

The company ended the period with net debt of US$12.13 billion, and is considering a stock market floatation of its Indus Towers joint venture to help pay down debt.

 

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