Bharti Airtel: Misses street expectations in Q3FY17

SMC | April 23, 2015, midnight

Highlights for the third quarter:


- ŸOverall customer base stands at 364.6 million across 17 countries, up 8.4% Y-o-Y excluding divested units.

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- Consolidated total revenues at Rs 23,336 crore, Y-o-Y flat on a underlying basis

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- India revenues up 1.8%, Africa growth of 6.0% Y-o-Y on underlying basis.

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- Mobile data traffic at 216 billion megabytes in the quarter growth of 36.4% Y-o-Y

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- Consolidated Mobile Data revenues at Rs 4,049 crore, Y-o-Y flat on an underlying basis.

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- Consolidated EBITDA at 8570 crore, margin up 1.1% Y-o-Y

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- Consolidated EBITDA margin at 36.70%, up 1.5% Y-o-Y.

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- Net Income at Rs 504 crore V/s Rs.1108 crore in the corresponding quarter last year.


Management Comment


Mr. Gopal Vittal,MD andCEO, India & South Asia, said: “The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33%. Airtel revenues grew by 1.8% Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24% of our total revenues.”


Mr. Christian de Faria, MD and CEO, Africa, said: “Underlying Africa revenue growth for the quarter accelerated to 6.0%Y-o-Y, the highest in last 9 quarters. Our efforts to improve the quality of customer acquisitions have resulted in reduction in customer churn to 4.9%from 6.0%.Data consumption and revenues have grown by 91.0%& 24.0%Y-o-Yrespectively, led by stronger data networks. Our strong focus on cost control has led to a significant underlying EBITDA margin expansion of 4.9%Y-o-Y, which now stands at 24.5%. Africa is now generating positive free cash and is PBT positive in constant currency”.

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