Bharti Airtel net dips 27%

Bhart Airtel today reported a 27 per cent fall in net profit for the July-September quarter because of high interest cost and intense competition. Bharti, the country’s largest mobile company in terms of users, registered a net profit of Rs 1,661 crore during the quarter compared with Rs 2,263 crore in the year-ago period. 

Revenue rose about 47 per cent to Rs 15,215 crore from Rs 10,379 crore in the same period last year, on the back of the acquisition of Zain’s telecom operations in 15 African countries in June. “Bharti Airtel continues to maintain its leadership position in India and generate healthy free cash flows. We are also redefining the accessibility and affordability level across Africa through innovative business models,” said Sunil Mittal, chief of Bharti Enterprises. Bharti had interest costs of Rs 502 crore in the July-September period compared with Rs 133 crore a year ago, mainly on account of the debt it took to fund the $9-billion acquisition in Africa. It had also borrowed funds to pay over Rs 12,000 crore to buy spectrum for third-generation mobile and wireless broadband services. 

Monthly average revenue per user (ARPU) — a key indicator of profitability —  dropped 6 per cent to Rs 202 from Rs 215 in the last quarter, despite an environment of stable pricing. Bharti, about 32 per cent owned by Singapore Telecom, has operations in India, Africa, Seychelles, Bangladesh and Sri Lanka. It has 194.8 million subscribers, including 150.41 million in India and 40.1 million in Africa. Airtel today said it might list its telecom tower subsidiary Bharti Infratel, which owns around 32,000 towers in 11 circles. Infratel also holds a 42 per cent stake in Indus Towers — a joint venture with Vodafone and Idea. According to analysts, the listing can help Airtel generate cash. The company is in the process of launching 3G services in the 13 circles where it has bagged spectrum through an auction held recently and rest of the country through roaming pacts. 

Source: http://www.telegraphindia.com

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