Airtel Q1 profit falls 30.8%
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India’s Bharti Airtel posted a 30.8% slump in net profit for the June quarter, as a steep 42.1% decline in the value of the Nigerian Naira reduced contributions from the operator’s African operations.
Airtel reported a net profit for its fiscal first quarter of 14.62 billion rupees ($218 million). Consolidated revenues increased 8.4% year-on-year to 255.46 billion rupees, with India revenues up 10.3% to 191.55 billion rupees.
Indian mobile broadband customers increased by 68.3% to 36.6 million, with data ARPU increasing by 21 rupees to 202 rupees. Total mobile data revenues grew 35.1% year-on-year to 35.25 billion rupees
“The year has begun well with revenue growth of 10.3%Y-o-Y and continued revenue market share gains,” Airtel MD and CEO for India and South Asia Gopal Vittal said.
“In continuation of our Project Leap announcement, we have now transparently opened up our entire mobile network to our customers so as to partner them in striving to deliver a world class experience.”
African revenues adjusted for tower and operating unit sales meanwhile grew 3.8% year-on-year in constant currency terms, with data revenues increasing to $154 million, or 16.5% of overall revenues.
Over the past 24 months, Airtel has sold tower assets in 11 African countries and divested its operations in Burkina Faso and Sierra Leone, raising a total of $3.25 billion.
Questions & Answers
Q.What was the main reason for the decline in Airtel's net profit during the June quarter?
What was the main reason for the decline in Airtel's net profit during the June quarter?
The decline in net profit was primarily due to a 42.1% drop in the value of the Nigerian Naira, which reduced contributions from the operator’s African operations.
Q.How did Airtel's revenue perform, particularly in India?
How did Airtel's revenue perform, particularly in India?
Consolidated revenues increased 8.4% year-on-year to 255.46 billion rupees. Revenues in India specifically rose 10.3% to 191.55 billion rupees.
Q.What impact did the company's African asset sales have on its operations?
What impact did the company's African asset sales have on its operations?
Airtel has sold tower assets in 11 African countries and divested operations in two, raising $3.25 billion over 24 months. African revenues, adjusted for these sales, grew 3.8% year-on-year in constant currency.
Q.What growth was seen in Airtel's Indian mobile data business?
What growth was seen in Airtel's Indian mobile data business?
Indian mobile broadband customers increased by 68.3% to 36.6 million, with data ARPU rising by 21 rupees to 202 rupees. Total mobile data revenues grew 35.1% year-on-year to 35.25 billion rupees.
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