Tuesday, 22 January, 2019

India's Bharti Airtel posts lowest quarterly profit in nearly 15 years

India's Bharti Airtel posts lowest quarterly profit in nearly 15 years India's Bharti Airtel posts lowest quarterly profit in nearly 15 years
Nellie Chapman | 24 April, 2018, 18:29

Largest telecom service provider Bharti Airtel missed analysts estimates in terms of consolidated net profit during fourth quarter ended March 2018 performance. Churn slowed to 2.8 percent, while ARPU was down 5.9 percent on a quarterly basis and 26.7 percent lower year-on-year at INR 116.

The data and voice calling rates have fallen drastically during the quarter as a result, Airtel reported a Consolidated revenue of Rs 19,634 crore, down from the Rs 21,935 crore it reported at the end of March 2017. Industry revenues were further adversely impacted this quarter due to the reduction in worldwide termination rates.Our strategic investments in data capacities, innovative digital content through Airtel TV, customer friendly bundles and upgrade programs led to the highest ever mobile data customer additions of 15 Mn during the quarter.

Vittal said the company ended the financial year 2017-18 with its highest ever capital expenditure of Rs 240 billion. Airtel said the industry continued to see "below cost, artificially suppressed pricing", compounded by the cut to global termination rates in the past quarter.

Shares of Bharti Infratel fell to over 1-year low due to loss in Q4 tenancies. The company's net profit for the year FY2017-18 was Rs 2494 crore as against Rs 2747 crore in the previosu fiscal showing a dip of 9%.

Furthermore, consolidated EBIT improved to Rs 4,034 crore after an 11 per cent jump, while operating free cash flow grew by 13 per cent to Rs 4,202 crore for the year. "Airtel continued to consolidate its leadership position this quarter". "We intend to continue the rollout momentum next year as well". Airtel reported a revenue of Rs 14,796 crore. Data traffic grew 88 per cent, voice minutes increased by 37 per cent.

Airtel has crossed 300 million mobile customer mark in India. After declaring a final dividend of INR 2.5 per share, the full-year pay-out reached INR 5.34, up from INR 1 a year earlier, and the company said the amount is a complete handover of subsidiary dividends.