Airtel has reported 38.66 million data subscribers in India, an 8% QoQ growth, out of which 3.71 million are 3G subscribers, a growth of 37% QoQ for the quarter ended 30th June 2012. 20.6% of Airtel’s mobile user base uses data services, with a total of 12,566 million MBs (Megabytes) of data usage being reported on the network, compare to 10,006 MB usage that it reported in the last quarter. However, data ARPU declined 10% QoQ at Rs 40 per user; data usage per user was at 112 MB, and data realisation per MB was 35.3 paise. The company has 18.012 3G cell sites in India. The company did not disclose the number of 4G subscribers. It had launched 4G services in Karnataka, in the last quarter.
Financials: Airtel reported total revenues of Rs 19,350 crore for the quarter, up 14% year on year, India mobile data revenues up 44.2% year on year for the quarter ended 30th June 2012. Its consolidated EBITDA was Rs 5,849 crore, up by 2.5% year on year, with EBITDA margin at 30.2%, impacted by adverse regulatory and tax developments in India, enhanced market participation and planned accelerated investments in both India and Africa, according to the company. Net profit for the quarter was Rs 762 crore, compared to Rs 1215 crore profit that the company registered in Q1-FY12.
Mobile Data Stats:
India Mobile: Data & VAS segment grows
India Mobile: India mobile revenues increased 9% to Rs 10,684 crore. Mobile EBITDA for India grew to Rs 3235 crore, down 4% year on year, and 9% quarter on quarter.
According to the company, mobile revenues in India during the quarter were impacted by two significant changes : TRAI guidelines around processing fees restricted the sales of “combo packs” which offered bundled service propositions; and the service tax hike from 10.3% to 12.36%, effective 1st April 2012, causing all telecom services to become dearer by nearly 2%, with the entire additional levy being passed through to the exchequer.
Note that with effect from 1st April, 2012, Airtel is reporting Broadband Wireless Access (BWA) services or 4G services as part of ‘Mobile Services India and South Asia’. It was reported earlier under ‘Telemedia Services’.
Airtel Mobile KPI’s For India
A few things noticeable here:
– A minor decline in the VLR percentage for the quarter, Airtel is still close to the 91% bracket, on par with Idea Cellular. Together these two companies have the highest percentages of active users in the Indian market.
– Recovery of net additions: Airtel reported 6.02 million net additions.
– Increase in traffic: Slight increase in minutes of use
– Decline in Rate per minute: This is unexpected, since telecom operates have taken a rate hike over the last few quarters.
– No Change in churn: One would have expected churn to decline, and for customers to port in to Airtel from other new telecom operators, after the Supreme Court verdict in the 2G case.
Airtel’s Telemedia business is floundering – the revenues have been flat quarter on quarter at Rs 944.2 million vs Rs 945.7 million, despite an increase in ARPU to Rs 962 from Rs 933, and the customer base continues to decline. At the same time, Telemedia EBITDA increased to Rs 380.9 crore from Rs 375.4 crore, reversing the decline. Airtel reported its broadband (DSL) customer base at 1.371 million.