The Airtel Q3 2017 results is a clear sign how predatory pricing can bleed the industry. The company’s net income plunged to a new low – 54.5%. The company posted a net profit of Rs 503 crore in Q3, 2017 compared to Rs 1108 crore for the same period a year ago.
If we make a quarter on quarter comparison, the Airtel Q3 shows even more troubled picture – a drop of 65.5% compared to the previous quarter. In Q2 2017, company’s net profit was Rs 1460 crore.
“The quarter has seen turbulence due to the continued predatory pricing by a new operator,” said Airtel India & South Asia CEO Gopal Vittal. “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.”
Revenues for Airtel India in the Q3 2017 rose marginally to post Rs 18013 crore, an increment of 1.8% over Rs 17694 crore posted in the same period previous year. The company said the slowdown in mobile revenue growth
primarily due to free voice and data offering by a new operator.
Airtel was obviously referring at Reliance Jio without directly naming the new operator.
The consolidated revenue of Bharti Airtel, that includes businesses in India, South Asia and Africa has also dropped 3% to post Rs 23336 crore in Q3 2017 compared to Rs 24,066 in Q3 2016.
Airtel Q3 results also shows data consumption has gone up for the operator however, the mobile data ARPU has decreased during the quarter from Rs 200 in Q3 2016 to Rs 175 in this quarter. Data revenue, during this quarter, represented 22.8% of its total revenue showing a dip from the same period a year ago. In Q3, 2016 it contributed 23.1% to the total revenue.