Airtel Q1 Results: Impressive Improvement In All Quarters

Country’s largest telecom operator Bharti Airtel has started showing strong improvements in FY 2019, despite the prevailing tough competition in the industry. Its Q1 results of fiscal 2019 show the company has bettered its performance from all aspects – revenue, net profit, human capital, and a closer-to-500-million subscriber base.

By the end of June 2018, Bharti Airtel’s total subscriber base of its 16 global markets reached 457 million. In the previous quarter the user base was at 414 million.

In terms of human capital, the firm’s total employee strength increased to 21,697 in June quarter compared to 20,978 in the previous quarter. While the Indian telecom industry is going through a phase of consolidation and companies are shrinking their assets, it gives a positive vibe that someone is still hiring!

From revenue perspective, on a consolidated basis, the company posted a total sales of Rs 20080 crore in the June quarter as against Rs 19634 crore in the previous quarter and Rs 21,958 crore in a year ago period. This is the first time the company posted a revenue growth after a consistent decline for last 11 quarters.

Bharti Airtel’s net profit, too, saw a boost in this quarter. The firm posted a profit after tax of Rs 97 crore in June quarter compared to Rs 83 crore in the previous quarter. However, on a y-o-y basis, Airtel has a lot to catch up.

“The acquisition of Telenor‟s India unit was completed during the quarter, and I am delighted to welcome all the Telenor customers into the Airtel family. Industry pricing continues to remain untenable. However, led by our successful bundles, content partnerships and handset upgrade programs, our mobile data traffic surged 355% on a YoY basis. Non-mobile portfolio also continues to witness healthy growth on back of investments in home passes and HD content. Aggressively expanding our 4G capacities and continuing to offer highest data speeds to customers remains a key priority for us, and towards this end, Q1‟19 has seen our highest quarterly capex spends of Rs 7,887 Cr. Our investments have led to some opex headwinds in this quarter but we remain focused on structural cost containment through our „War on Waste‟ program. With consolidation largely done, the secular opportunity of the Indian telecom market continues to excite us and we remain committed to offer best-in-class services to all consumers,” said Gopal Vittal, MD and CEO, India & South Asia.

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