Airtel

India’s largest telco Bharti Airtel has reported a net profit of Rs 962 crore for the quarter ended March 31, 2014, up 89.1% from Rs 509 crore profit in the same quarter last year.

This was on consolidated revenue of Rs 22,219 crore, which was up 13.5% year-on-year (YoY). The growth was led by an increase in mobile data revenues, which increased by 93.4% YoY at a consolidated (Africa, India, South Asia) level to Rs 1,900 crore, and accounting for more than one-third of Airtel’s overall incremental revenue. Mobile ARPU increased by 1% quarter-on-quarter (QoQ) to Rs 196 from Rs 195 in the previous quarter.

For the entire fiscal 2014, the net profit was up 21.8% to Rs 2,773 crore, while the consolidated revenues was up 11.5% to Rs 85,746 crore. The consolidated revenues were driven by a 96.3% increase in mobile data revenues, 27.5% increase in DTH segment, 19.1% increase in Airtel Business segment and 41.2% increase in South Asia revenues.

India

– Revenue from mobile services were up 11.6% YoY to Rs 12,083.5 crore, from 11,644.6 crore in the previous quarter. For the fiscal FY14, the mobile services revenues saw an 8% growth to Rs 46,683.5 crore, up from Rs 43,070.8 crore in the previous year.

– India mobile data revenues was up 89.2% to Rs 1,325 crore. Revenue from mobile data accounted for 11.1% of the total mobile revenue for the quarter as compared to 6.5% in the corresponding quarter last year.

– Total minutes on network increased by 5% YoY to 264.8 billion minutes from 253.1 billion minutes in the corresponding quarter last year. Mobile voice realisation rate increased by Rs 0.021 paisa to Rs 0.371.

– EBITDA during the quarter increased by 25% to Rs 4,214.7 crore as compared to Rs 3,369.6 crore in the corresponding quarter last year. Consequently, EBITDA margin significantly improved to 34.9% for the quarter from 30.6% in the corresponding quarter last year.

– EBIT during the quarter was Rs 2,539.3 crore as compared to Rs 1,731.3 crore in the corresponding quarter last year. EBIT margin improved to 21% for the quarter from 15.7% in the same quarter last year due to improved EBITDA and capex efficiency.

2G Auctions: In the February 2G spectrum auctions, Airtel secured 115 MHz of spectrum for Rs 18,529.64 crore. This includes 18MHz of 900 MHz spectrum in Delhi, Kolkata and Mumbai for Rs 8,623.62 Crore and 97 MHz of 1800 MHz spectrum in 15 circles for Rs 9,906.02 crore.

Airtel had stated plans of using the acquired spectrum to roll out high speed 4G networks using FD-LTE technology in the 1800 MHz band besides its existing TD-LTE roll-out in the 2300 MHz band, so as to secure a pan-India 4G footprint.

Telemedia

– Operating in 87 cities with 3.36 Mn customers, out of which around 1.46 are broadband (DSL) customers, representing 43.6% of the total Telemedia customers. In comparison, DSL customers represented 43.4% of total Telemedia customers in the previous quarter.
– Telemedia revenues were up 12.2% YoY to Rs 1,024 crore for the quarter, from Rs 913 crore last year. For the fiscal FY14, the telemedia revenues were Rs 3,935.2 crore.
– EBITDA for the quarter was higher by 0.9% to Rs 381.6 crore compared to Rs 378.3 crore in the corresponding quarter last year. EBITDA margin for this segment was 37.3% for the quarter as against 41.4% in the same quarter last year.

Digital TV Services

– 9.01 million customers, up 2% QoQ.
– Revenues were up 22.5% to Rs 541.5 crore from Rs 441.9 crore in the corresponding quarter last year. For the fiscal FY14, the revenues from digital TV services were at Rs 2,077.1 crore.
– EBITDA for the quarter increased to Rs 96.3 crore from Rs 29.6 crore in the corresponding quarter last year. EBITDA margin improved significantly to 17.8% for the quarter from 6.7% in the same quarter last year.
– ARPU increased by Rs 19 to Rs 203 due to higher HD penetration.

Airtel Business

– Revenues were up 24% to Rs 1,630.5 crore from Rs 1,314.4 crore. For the fiscal FY14, the revenues were at Rs 6,336.1 crore.
– EBITDA was at Rs 366.1 crore, up 30.8% from Rs 280 crore.
– During the quarter, the Nxtra data center business started operating as a separate entity, although the results of this entity continue to be incorporated in the Airtel business segment.

International

Africa

– Mobile data revenue grew by 80.6% to $88.2 million for the quarter as compared to $48.2 million in the same quarter last year. Mobile data revenue now represents 7.7% of the Africa’s total revenue for the quarter which was at $1.145 million. In comparison, data revenues represented 4.4% of Africa’s total revenues in the same quarter last year.

– An aggregate connection base of 69.4 million with 1.1 million additions for the quarter. Net additions primarily arose from the Warid Congo S.A. acquisition.

– Data connections for the quarter increased by 14% QoQ to 22.3 million from 19.6 million in the previous quarter. Data connections now represents 32.1% of the telco’s total connection base in the region, up from 28.7% in the previous quarter.

– Data traffic is up 104% YoY to 6.11 billion MB for the quarter, from 3 billion MB in the corresponding quarter last year. Data usage per customer for the quarter increased to 96.4 MB from 73.4 MB in the same quarter last year while Data ARPU increased by 17% YoY to $1.4 from $1.2 in the corresponding quarter last year.

– Total minutes on network for the quarter were 28.2 billion as compared to 23.36 in the corresponding quarter last year, a growth of 21%.

– Voice ARPU for the quarter declined by 6% QoQ to $4.4, from $4.7 in the previous quarter.

– Mobile voice pricing in Africa declined by 2% QoQ to $0.0323 per minute, while overall ARPU declined by 5% QoQ to $5.5.

– The company had 17,792 network sites by the end of the quarter as compared to 16,653 network sites in the corresponding quarter last year, an increase of 1,139 sites. 3G sites at 6,923 represented 38.9% of the total sites as at the end of the quarter, as compared to 34.1% in the corresponding quarter last year.

– After accounting for reduction in inter-connect costs and cost of goods sold, net revenue at $951 million reflects a 6.8% growth YoY.

– EBITDA for the quarter increased by 2% YoY to $290 million from $285 million in the corresponding quarter last year.

– Customer acquisition was impacted in Nigeria due to restrictions imposed by the regulator on selling SIM cards in March 2014.

– Airtel has been awarded the first 3G/4G license by the Tchad government.

– Airtel has partnered with Thuraya Telecommunications Company to expand mobile connectivity across 17 countries in Africa. It also partnered with British Council to provide access to digital educational resources to schools in nine sub-Saharan African countries.

– Airtel launched Airtel Money Visa Card in Kenya in collaboration with Chase Bank, providing customers with over 10,000 visa point of sales.

South Asia

– Data revenue grew by 52.3% to $4.9 million for the quarter, from $3.2 million in the previous quarter. Data revenue now represents 6.8% of South Asia’s mobile revenue for the quarter which was at $73 million, up 14% YoY. In comparison, data revenues represented 6.6% of the region’s mobile revenues in the previous quarter.

– An aggregate connection base of 8.62 million with 0.19 million additions for the quarter.

– Data connection base was at 3.08 million for the quarter, up 38% from 2.23 million the same quarter last year. It represented 35.7% of the total customer base for the quarter, up from 28.3% in the same quarter last year.

– Total data consumption for the quarter increased by 73% to 1.8 billion MBs from 1.06 billion MBs in the same quarter last year. Data usage per customer also increased to 208.9 MB, a 22% growth from 171.6 MB in the corresponding quarter last year.

– Minutes of usage for the quarter were 10.35 billion as compared to 9.86 billion in the corresponding quarter last year, an increase of 5% YoY.

– Revenue from operations in South Asia was at $73 million for the quarter, an increase of 14% YoY. EBITDA for the quarter was positive at $5 million as compared to EBITDA loss of $1 million in the corresponding quarter last year.

– The telco had 6,814 network sites by the end of the quarter as compared to 6,474 network sites in the corresponding quarter last year, an increase of 340 sites. 3G sites at 1,986 represented 29.2% of the total sites as at the end of the quarter, as compared to 10.4% in the corresponding quarter last year.

– Airtel has secured 2 blocks of 15 MHz LTE spectrum in 800 MHz from the regulator in Seychelles.

Consolidated Financials

– Consolidated Revenues was Rs 22,219 crore for the quarter, up 13.5% YoY. The annual consolidated revenues was at Rs 85,746 crore, up 11.5% YoY.
– Mobile Internet Revenues: Rs 1,900 crore. up 93.4% YoY.
– International revenues 
grew 17.2% YoY in INR terms, with Africa growing by 16.4% YoY, while South Asia grew by 30% YoY.
– Consolidated EBITDA grew by 20.6% YoY to Rs 7,307 crore.
– Consolidated Net Income: Rs 962 crore, up 89.2% from Rs 509 crore for the same quarter last year.
– Net debt increased to $10.074 billion on a quarterly basis, although it declined from $10.73 billion debt in the previous year.
– India EBITDA margins improved by 3% YoY and was at 36.8%.
– India revenues for the company were up 11.6%.

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