Airtel’s non voice revenues (Data, VAS, SMS) in India declined marginally to 14.5% of total from 14.6% the previous quarter, in sharp contrast with some of the other telecom operators for whom non-voice represents a higher share of revenues, and is growing. Non voice is clearly not growing at the same pace as Airtel’s voice business in terms of revenues, but strangely, the press release quotes Airtel CMD Sunil Bharti Mittal as saying that the India business has achieved double digit growth “fueled by non-voice businesses”. Eh? Also keep in mind that Airtel reported a significant increase in contribution of SMS to total revenues (from 8.9% to 9.5%), so has there been a decline or a reduction in growth of the non-voice-non-SMS based VAS? Appears so.
This doesn’t augur well for Airtel’s non voice business, since as per the quarterly report, Airtel is yet to fully implement the TRAI directive on Activation of VAS Services, which requires the explicit consent of the customer. The report states “This directive was effective from August 4, 2011, however the same has not been implemented fully till date.” So if it is implemented, expect a further decline.
Mobile KPI’s For India & South Asia
Airtel reported consolidated total revenues of Rs 17,276.4 crore, up from Rs 16,974.9 crore last quarter, and a net profit of Rs 1027 crore, down from Rs 1215.2 crore last quarter. It reported an EBITDA of Rs 5815 crore, up from Rs 5705.8 crore. It’s EBITDA margin, marginally increased to 33.7%, from 33.6%.
– Airtel reported a 1.87% decrease in mobile traffic, and this seems to have been reflected in revenue, which declined 0.59% to Rs 9782.7 crore. There was a marginal increase in the rate per minute, after a reported increase in rates from the company.
– There was a 48.53% decline in net additions, with only 3.59 million connections added, compared with 6.98 million the previous quarter.
– ARPU declined to Rs 183 from Rs 190, but that is still above the market average. The blended monthly usage per customer, during the quarter was at 423 minutes.
– Monthly churn increased from 6.4% from 7%.
Telemedia revenue increased 0.75% to Rs 952.80 crore, up from Rs 945.70 crore last quarter. The ARPU for the quarter was Rs 955.
– Digital TV: Airtel’s DTH business showed a 5.62% growth, reporting a subscriber base of 6.61 million.
Airtel Sri Lanka has over 1.5 million customers, while Airtel Bangladesh has 4.3 million customers.