Bharti Airtel’s Q2 net income reaches 512 crore, down 29%

Bharti Airtel net income for Q2 was down 29 percent year-on-year to reach Rs 512 crore.

The continued depreciation of the Indian Rupee has resulted in forex restatement and derivative losses of Rs 342 crore.

The consolidated revenues for Q2 at Rs 21,324 crore grew by 10 percent over the corresponding quarter last year. Mobile internet revenues reached Rs 1,503 crore and grew more than 100 percent Y-o-Y, accounting for 39.1 percent of the overall incremental revenue.

Revenues were also enhanced by strong growths of 28.8 percent in Digital TV, 20.8 percent in airtel business‟ (B2B), and 54.4 percent in South Asia.

Mobile voice realisation in India improved by 1.31 paisa on a Y-o-Y basis, together with an increase in voice usage per customer by 20 minutes per month. Data usage per customer has gone up by 98 MBs to reach 231 MBs per customer in Q2. Consequently, ARPU has moved up by Rs 15 to Rs 192 in Q2.

International revenues grew 18.3 percent Q-o-Q in Rupee terms with Africa growing 18.5 percent Q-o-Q while South Asia grew by 16 percent Q-o-Q.

Africa revenue in constant USD terms grew by 5.4 percent on sequential quarter basis led by a strong 28.2 percent increase in data revenues. Mobile voice pricing in Africa remained stable at 3.30 cents per minute. Net revenue in Africa has grown by 20.7 percent Y-o-Y in Rupee terms.

Consolidated EBITDA grew by 15.1 percent Y-o-Y at Rs 6,832 crore with margin expanding to 32 percent from 30.6 percent in the corresponding quarter last year, driven by India EBITDA margin improvement from 32.6 percent to 34.8 percent. The much improved operational performance is reflected in EBIT of Rs 2,893 crore, representing a 28.7 percent Y-o-Y growth and 2 percent EBIT margin improvement.

Consolidated Operating Free Cash Flows for the quarter were at RS 4,693 crore, reflecting a robust growth of 117.1 percent Y-o-Y. The company‟s consolidated net debt has reduced to $9,697 million resulting in the Net Debt to EBITDA ratio (USD terms) improving to 2.18 times as compared to 2.59 times at the end of the same quarter last year.

Sunil Bharti Mittal, chairman, Bharti Airtel said, “Mobile internet is now a major engine of growth for Airtel across all geographies. Our sustained investment in this segment will further enhance customer experience and seamless coverage. The revenue growth in Africa reflects the inherent potential in the world‟s most promising continent. I am also pleased to see the evolution of Airtel Money into a significant service in geographies which are relatively under-banked.”

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