Telecom major Bharti Airtel on Thursday reported a consolidated net profit fall of 39% at Rs 305 crore for the December quarter on year, in wake of domestic termination rate reduction and Africa and Bangladesh divested operating units.
Telecom major Bharti Airtel on Thursday reported a consolidated net profit fall of 39% at Rs 305 crore for the December quarter on year, in wake of domestic termination rate reduction and Africa and Bangladesh divested operating units. Bharti Airtel said in a regulatory filing. The consolidated revenues for Q3 de-grew at Rs 20,319 crore, a decline of 8.4% on year (a drop of 12.9%) on an underlying basis. Consolidated EBITDA at Rs 7,587 crore declined 11.5% on year. Consolidated EBITDA margin increased by 0.6% to 37.3% in the quarter as compared to 36.7% in the corresponding quarter last year. Consolidated EBIT dropped by 26.5% Y-o-Y to Rs 2,701 crore. Net interest costs of Rs 2,081 crore have risen from Rs 1,810 crore in the corresponding quarter last year – largely due to lower investment income.
The company’s consolidated net debt has increased to Rs 91,714 crore from Rs 91,480 crore in the previous quarter. Net debt excluding the deferred payment liabilities to the DOT and finance lease obligations has decreased by Rs 724 crore sequentially in the quarter. “Regulatory fiat in the form of a cut in domestic IUC rates has exacerbated the industry ARPU decline in Q3’18. The recent announcement of reduction in International termination rates will further accentuate this decline and benefit foreign operators with no commensurate benefit to customers. Continued investments in data capacities, strategic partnerships with content and handset providers and focus on customer friendly innovations like data rollover has led to healthy customer additions of 8.1 Mn during the quarter. Q3’18 has also seen the highest ever broadband site deployment of 32K in any quarter, complementing the robust data and voice traffic growth of 544% and 50% respectively on a Y-o-Y basis. We are committed to remaining the operator of choice for all customers in this rapidly consolidating industry,” said Gopal Vittal, MD and CEO, India & South Asia.
In Bharti Airtel’s Q2 financial results, consolidated adjusted net profit plunged 77 percent and revenue fell 10.4 percent on-year on an underlying basis. India’s largest telecommunication services company’s Jul-Sep adjusted net profit fell to Rs 343 crore from Rs 1,461 crore in the same quarter a year ago, as competitive pressure from Reliance Jio continued to weigh, leading to a sharp drop in its India revenues. Bharti Airtel’s aggressive tariff offers to counter relentless competition from Reliance Jio hurt earnings, and the ongoing tariff war in the telecommunication sector led to a sharp fall in the money earned per customer.
In Q3 results declared yesterday, Bharti Infratel’s net profit dropped 6 percent year on year in Q3, owing to a rapid reduction in co-location of telecom sites as carriers undergoing consolidation remove overlaps in respective networks. The telecom tower company’s consolidated net profit for October-December period came to Rs 585 crore, from Rs 620 crore in the same period the year before. Consolidated revenue rose 7% on a like-to-like basis to Rs 3,655 crore, the company said in a statement on Wednesday.
Bharti Airtel Limited is an Indian global telecommunications services company based in New Delhi, India. Bharti Airtel operates in 17 countries across South Asia and Africa. Airtel provides GSM, 3G and 4G LTE mobile services, fixed line broadband and voice services depending upon the country of operation.