Bharti Airtel, India's largest telecom operator, registered a net profit of Rs 284 crore for the quarter ending December 2012, a decline of 72 percent. This is worse than what the analysts had expected.
The company said that the consolidated net income was impacted by: higher depreciation & amortisation cost (` 316 crore), net interest costs (` 284 crore), forex fluctuation losses (` 261 crore) and tax provisions (` 109 crore).
“Market conditions have been challenging in recent quarters due to pricing pressures and rising input costs, which have put enormous pressure on the sector and consequently the margins”, said Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited.
He however said that the worst seems to be getting over with corrections taking place in customer acquisition practices and the tariffs, which are driving quality of acquisitions and improving efficiencies. Moreover, on the data front, it is heartening to see strong growth quarter on quarter and across geographies.
It said that revenues in Q3 on a consolidated basis at ` 20,239 crore grew by 9.5% over the corresponding period last year, led by strong growth of 70% in mobile internet in India, 29% in Digital TV, 20% in ‘airtel business’ (B2B) and 15% in Africa. The new activation processes and improved retention strategies in India have helped reduce monthly churn to 5.9% from 8.5% in the previous quarter. ARPU has improved to ` 185, a sequential improvement of ` 8 in this quarter.
Africa revenues grew by 15% Y-o-Y, supported by customer base growth of 21%, voice traffic increase of 42%, and non voice revenue growth of 85%. Voice usage per customer has grown Y-o-Y by 15% from 125
minutes to 144 minutes.
It reported consolidated EBITDA margin is at 30.6%. Q2 margin at 31.3% benefitted from a favourable judicial outcome in respect of certain inter-connect agreements. Consolidated Operating Free Cash Flows for the quarter were at ` 3,801 crore. The Net Debt - Equity ratio was at 1.25
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