Airtel

India’s largest telco Bharti Airtel has reported a net profit of Rs 1,108 crore for the quarter ended June 30, 2014, registering a significant 60.9% growth from Rs 689 crore in the same quarter last year.

This was on consolidated revenues of Rs 22,962 crore for the quarter, up 13.3% year-on-year (YoY).  The increase in revenues was driven by a significant 73.9% YoY growth in consolidated mobile data revenues to Rs 2,204 crore for the quarter. Airtel mentions that this segment has been consistently contributing for more than one-third of Airtel’s overall incremental revenue.

The contribution of non-voice revenues increased to 27.4% of Airtel’s overall revenues for the quarter, from 25% contribution in the same quarter last year. On a sequential basis, it however declined from 29.5% contribution in the previous quarter.

India

– Revenue from mobile services was up 10% YoY to Rs 12,752.5 crore, from 11,601.3 crore in the previous quarter. Total revenues was up 12% YoY to Rs 15,787 crore for the quarter from Rs 14,123.3 crore in the same quarter last year.

India mobile data revenues was up 68.2% YoY to Rs 1,559 crore. Revenue from mobile data accounted for 12.4% of the total mobile revenue for the quarter as compared to 8.2% in the corresponding quarter last year.

Total minutes on network increased by 2% QoQ to 270.8 billion minutes from 264.8 billion minutes in the previous quarter. Mobile voice realisation rate increased to Rs 0.381.

– Total connection base at 209.4 million, up 2% QoQ. Net additions declined 44% to 3.9 million from 7 million in the previous quarter.

ARPU is up 3% QoQ to Rs 202 from Rs 196 in the previous quarter while the revenue per site per month was up 5% QoQ at Rs 3.02 lakh from Rs 2.88 lakh.

Voice ARPU is up 2% QoQ to Rs 166 for the quarter while the voice usage per customer saw a minor decline to 435 minutes from 437 minutes in the previous quarter.

– EBITDA during the quarter increased by 25.1% YoY to Rs 4,706.1 crore from Rs 3,763.3 crore in the corresponding quarter last year. Consequently, EBITDA margin significantly improved to 36.9% for the quarter from 32.4% in the corresponding quarter last year.

– EBIT during the quarter grew by 40.6% YoY to Rs 2,950.2 crore from Rs 2,097.9 crore in the corresponding quarter last year. EBIT margin improved to 23.1% for the quarter from 18.1% in the same quarter last year due to improved EBITDA and asset productivity.

Telemedia

– Operating in 87 cities with 3.35 million customers, out of which around 1.46 million are broadband (DSL) customers, representing 43.6% of the total Telemedia customers. This was flat on a quarterly basis but up 4% from 1.41 million in the same quarter last year.
– There was however a net decline of 6,000 customers for the quarter, as compared to 1,000 additions in the previous quarter.
ARPU is up 5% to Rs 1010 from Rs 963 in the previous quarter.
– Telemedia revenues were up 12.9% YoY to 1,070.5 crore for the quarter, from Rs 948.4 crore last year.
– EBITDA for the quarter was up by 5% to Rs 394.7 crore from to Rs 376.4 crore in the corresponding quarter last year. EBITDA margin for this segment was 36.9% for the quarter as against 39.7% in the same quarter last year. This is largely due to the 8% license fee on DSL revenues introduced in March this year.

Digital TV Services

– 9.39 million customers, up 4.2% QoQ. Monthly churn declined to 0.6% from 0.9% in the previous quarter.
– Revenues were up 20.7% to Rs 591.5 crore from Rs 490 crore in the corresponding quarter last year.
– EBITDA for the quarter increased by 89% to Rs 143.7 crore from Rs 76 crore in the corresponding quarter last year. EBITDA margin improved significantly to 24.3% for the quarter from 15.5% in the same quarter last year.
ARPU increased by 5% to Rs 214 to Rs 203 because of higher HD penetration and upselling of packs.

– During the quarter, Airtel Digital TV launched Pocket TV for iOS, enabling Airtel Digital TV subscribers to watch TV on their phones and tablets.

– Airtel Digital TV also tied up with Disney India to launch an English subscription video on demand (SVOD) service called Disney Family Movies in May this year.

Airtel Business

– Revenues was up 14.8% to Rs 1,611.1 crore from Rs 1,403.6 crore.
– EBITDA was up 17% to Rs 322.3 crore from Rs 276.5 crore. EBITDA margin improved marginally to 20% for the quarter from 19.7% in the same quarter last year.

International

Africa

Mobile data revenues was at $102 million for the quarter as compared to $57.3 million in the same quarter last year. Mobile data revenue now represents 8.8% of the Africa’s total revenue for the quarter, as compared to 5.3% in the same quarter last year.

– Data ARPU increased by 21.95% YoY to $1.5 from $1.23 in the corresponding quarter last year.

– Data connections for the quarter increased by 6% QoQ to 23.65 million from 22.3 million in the previous quarter. Data connections now represents 34.2% of the telco’s total connection base in the region, up from 32.1% in the previous quarter.

Data traffic is up 7% QoQ to 6.54 billion MB for the quarter, from 6.11 billion MB in the previous quarter. Data usage per customer was nearly flat at 96 MB from 96.4 MB in the previous quarter.

– The aggregate connection base saw a marginal 1% decline to 69.09 million from 69.44 million in the previous quarter. This was due to promotional bans in Nigeria and KYC changes in Uganda.

Total minutes on network for the quarter was at 28.26 billion, nearly flat from 28.16 billion in the previous quarter but up 9% from 25.97 billion in the corresponding quarter last year.

– Voice ARPU for the quarter was flat QoQ at $4.4 for the quarter.

– Mobile voice pricing was also flat QoQ at $0.0323 per minute, while overall ARPU increased by 1% QoQ to $5.6.

– The company had 17,781 network sites by the end of the quarter, down from 17,792 network sites in the previous quarter. 3G sites at 7,165 represented 40.3% of the total sites as at the end of the quarter, as compared to 38.9% in the previous quarter.

– The total revenue was at $1.16 billion for the quarter, up 10% from $1.06 billion in the same quarter last year. In constant currency terms, the revenues grew by 12.1%.

After accounting for reduction in inter-connect costs and cost of goods sold, net revenue grew by 10.6% to $979 million for the quarter.

– EBITDA for the quarter was flat at $283 million. EBITDA margin however declined to 24.3% from 26.7% in the same quarter last year.

– Airtel Niger received a 15-year 3G license earlier this month (July 12, 2014). Its 2G license was also extended until July 2030. The litigation on transit termination rate was also concluded with rate finalized at 66 FCFA/min instead of 35 FCFA/min.

– Airtel Chad received a 10-year 3G/4G license from the TChad government in April this year and its 2G license was also extended to April 2024.

– Earlier this month, Airtel Africa had signed an agreement to sell and lease back over 3,100 towers in four countries across Africa to the telecom tower operator Helios Towers Africa (HTA).

South Asia

– Data revenue grew by 67.6% YoY to Rs 33.2 crore for the quarter, from Rs 19.8 crore in the previous quarter. Data revenue now represents 7.6% of South Asia’s mobile revenue for the quarter, up from 6.8% contribution in the previous quarter. The increase was due to new pack launches, night packs and other campaigns.

– An aggregate connection base of 8.65 million with 0.32 million additions for the quarter.

Data connection base declined by 3% to 3 million for the quarter, from 3.08 million in the previous quarter. It now represents 34.7% of the total connection base for the quarter, down from 35.7% in the previous quarter.

– Total data consumption for the quarter increased by 15% to 2.1 billion MBs from 1.83 billion MBs in the previous quarter. Data usage per customer also increased to 238 MB, a 14% growth from 209 MB in the previous quarter.

Minutes of usage for the quarter declined by 1% QoQ to 10.28 billion from 10.35 billion in the previous quarter. It declined by 2% on a yearly basis. This was due to strict controls on grey traffic in Bangladesh by the entire industry.

– Revenue from operations in South Asia was at Rs 437.1 crore million for the quarter, an increase of 11.7% 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 6,885 network sites by the end of the quarter as compared to 6,814 network sites in the previous quarter, an increase of 71 sites. 3G sites at 2,105 represented 30.6% of the total sites as at the end of the quarter, as compared to 29.2% in the corresponding quarter last year.

– Airtel Bangladesh removed 3G speed cap which apparently resulted in 76% growth in its 3G data revenue.

– The company launched onnet community based product called GangTalk where customers could build their own group and talk at discounted rate.

– In May this year, Airtel Bangladesh also launched airCredit facilities to its customers, enabling to recharge their mobile account balance on credit.

Other Financial details

– Consolidated EBITDA grew by 18% YoY to Rs 7,720 crore. Margins improved by 1.3% to 33.6%.
– Consolidated EBIT grew by 36.5% to Rs 3,684 crore. EBIT margin improved by 2.7%
– Net debt decreased to $9,609 billion on a quarterly basis, which resulted in the improvement of Net Debt to EBITDA ratio to 2.04 from 2.20 in the same quarter last year.