Bharti Airtel’s Q3 results: Loss nearly double than expected

By: |
February 04, 2020 5:52 PM

One of India’s largest telecom operator Bharti Airtel has announced its Q3 earnings and the company has posted a net loss at almost double than what was expected in this quarter.

Government approves up to 100 pc FDI in Bharti Airtel, department of telecomBharti Airtel’s India revenues have jumped 7% on-year. (Image: Reuters)

One of India’s largest telecom operator Bharti Airtel has announced its Q3 earnings and the company has posted a net loss at almost double than what was expected in this quarter. Bharti Airtel was expected to report losses to the tune of Rs 600 crore in the December quarter due to AGR dues but the company posted losses at Rs 1,080 crore. In the previous quarter, the Sunil Bharti Mittal-led company had posted a net loss of Rs 23,045 crore. Airtel was directed to pay over Rs 35,000 crore to Department of Telecommunications (DoT) for Adjusted Gross Revenue (AGR) dues. 

Key takeaways from Q3 results:

  • Bharti Airtel’s India revenues have jumped 7% on-year.
  • The telecom operator’s consolidated revenue is up by 8.5% and now stands at Rs 21,947 crore.
  • Airtel’s customer base stands at 419 million across 16 countries.
  • Airtel also reported an increase in the mobile data traffic to the tune of 73% on-year. 
  • Airtel reported a ballooning of its 4G subscriber to the tune of 21 million.
  • The telecom operator’s consolidated EBITDA stood at Rs 9,350 crore and consolidated EBITDA margin was up by 42.6%
  • India EBITDA margin up by 13.3% on-year. 

The telecom major was expected to post a net loss of Rs 615 crore with a rise in revenues by 9% on-year at Rs 2,2115 crore, according to an HDFC Securities report. The telco’s EBITDA was expected to see a 44% on-year rise to Rs 8,920 crore. Bharti Airtel’s net loss for the quarter was expected to come at Rs 615 crore as compared to Rs 1,041 crore a year ago in the comparable period. According to Kotak Institutional Equities, the company was expected to report loss at Rs 780.8 crore and 3.1% growth in revenue. “We expect a 6.5 per cent QoQ increase in India wireless revenues on the back of tariff hikes. We are building a 6.8 per cent QoQ increase in ARPU to Rs 139 per month,” the brokerage firm said in a note released before the earnings announcement.

Ahead of the results, Bharti Airtel share price closed at Rs 520, gaining 2.05% or 10.45 points apiece on BSE.

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