Bharti Infratel Oct-Dec net profit

By: | Updated: January 28, 2016 12:44 AM

The company’s net profit grew from R507 crore to R565 crore, revenue up from R2,949 crore

Telecommunications tower company Bharti Infratel on Wednesday reported a 12% on-year increase in its fiscal third-quarter net profit, as its clients spent more on rolling out 3G and 4G networks during the period.

During the October-December quarter, Bharti Infratel’s net profit grew from R507 crore to R565 crore, the company said in a statement. Its revenue also rose by 5% during the quarter to R3,093 crore compared to the year earlier’s R2,949 crore, it said.

“The capital expenditure for the telecom sector is on rise due to aggressive rollout of 3G and 4G networks by the operators encouraged by increasing mobile data usage and focus on quality of service. We are already seeing sharp surge in data installations that these companies shall be major beneficiaries of this accelerated rollout and capex,” said Akhil Gupta, chairman, Bharti Infratel, in his statement.

The New Delhi-based company – owned about 71.70% by Bharti Airtel – builds, owns and leases communications infrastructure such as towers to telecommunications companies including its rivals Vodafone India, and Idea Cellular. It also co-locates towers with Indus Towers, a three-way joint venture between Bharti Airtel, Vodafone India, and Idea Cellular.

During the quarter, the company added 871 towers, taking the total number of such towers to 88,055 at end of December, as mobile phone operators expanded their networks to offer 3G/4G services as well as to address call drops issues. The network expansion, in turn, helped Bharti Infratel’s average sharing ratio to reach 2.17 times during the three months through December, compared to 2.15 times during the previous three months through September, the company said.

Increased tenancy had pushed the sharing revenue per tower higher by 5.7% on-year to R74,820 from R70,805, while its sharing revenue per operator rose 1.4% to R34,453, the company said. In summary, the higher tenancy and marginal increase in revenue sharing per operator, helped its Ebidta margin to expand to 43.6% during the past quarter from 43.3%, a year earlier.

At end of December 2015, Bharti Infratel had an average residual service contract period with its clients for about 5.53 years, while its minimum lease payment receivable stood at R46,873.6 crore.

Bharti Airtel, the parent company of Bharti Infratel is scheduled to announce its earnings on Thursday after market hours.

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