Bharti Airtel Ltd reported consolidated operational revenues of Rs 20,519 crore in the quarter ended December 31, 2018, largely stagnant year-over-year. Consolidated net profit for the period was 31% lower YoY from Rs 560 crore to Rs 382 crore. The company has 384.65 million mobile customers world over, of which 284 million are in India and 97 million are in the 12 countries where it is operational in Africa. 

Consolidated segment revenues

  • Mobile services India: Rs 10,189 crore in Q3, Rs 30,922 crore in 2018
  • Mobile services Africa: Rs 5,903 crore in Q3, Rs 16,835 crore in 2018
  • Mobile Services South Asia (Sri Lanka): Rs 113 crore in Q3, Rs 331 crore in 2018
  • Airtel Business: Rs 3,111 crore in Q3, Rs 9,450 crore in 2018
  • Tower Infrastructure: Rs 1,733 crore in Q3, Rs 5,148 crore in 2018
  • Homes services: Rs 550 crore in Q3, Rs 1,686 crore in 2018
  • Digital TV: Rs 1,033 crore in Q3, Rs 3050 crore in 2018

Consolidated segment results for Q3

  • Mobile services India: Loss of Rs 1,903 crore
  • Mobile services Africa: Rs 1,354 crore
  • Mobile Services South Asia (Sri Lanka): Loss of Rs 24.7 crore
  • Airtel Business: Rs 667 crore
  • Tower Infrastructure: Rs 801 crore
  • Homes services: Rs 73.4 crore
  • Digital TV: Rs 157 crore

Investments in Airtel Africa

Earlier this quarter, Airtel Africa raised $1.25 billion from a group of six investors including Warburg Pincus, Temasek Holdings, Singapore Telecommunications Ltd and SoftBank Group Corp. The investment will be done via subscription of new shares to the Africa unit.

Last week, Airtel Africa raised another $200 million in funding from Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar. The company said it will use the funding to reduce its existing net debt. Airtel Africa has appointed global banks JP Morgan, Citigroup, Merrill Lynch, and others for an intended IPO.

Other notes:

  • Airtel Payments Bank Ltd is no longer a subsidiary of Bharti Airtel, and is now an associate investment.
  • On January 8, the DoT demanded Rs 5,201.3 crore towards one-time spectrum charge, but the Bombay HC has directed the DoT to respond and not take any coercive action through its order dated January 8.

Airtel India (Standalone)

Segment revenues

Airtel’s standalone operational revenue was Rs 12,314 crore in the quarter ended December 31, 2018, which remained stagnant year-on-year. Standalone profit increased by 250% year-on-year to Rs 227 crore from a net profit of Rs 64.3 crore in Q3FY18. However, the company had reported losses of Rs 562 crore in the preceding quarter, and has reported total losses of Rs 1,792 crore in 2018.

  • Mobile services: Rs 9,866 crore
  • Airtel Business: Rs 2,596 crore
  • Home Services: Rs 538 crore

Losses from mobile services have reduced by 55% YoY to Rs 1,644 crore from losses of Rs 3,627 crore in the same quarter last year. However, losses from the segment have increased over the preceding quarter by 23% from Rs 1,336 crore.

Mobile services India metrics

  • Customers: 284.22 million customers, fall of 2%
  • Net additions: 48,539 customers left the service
  • Prepaid user base: 93.7% of total user base
  • Monthly churn: 3.3%
  • ARPU: Rs 123 (or $1.9), down by 15.5%
  • Monthly revenue per tower: Rs 193,519 (Rs 1.93 lakh), down 10.3%

Mobile revenues (excluding revenues from network groups providing fiber connectivity, and group eliminations): Rs 10050 crore, fall of 4.9%

Voice:

  • Minutes on network: 702.88 billion minutes
  • Voice usage per customer: 726 minutes

Data:

  • Customer base: 107.51 million, increase of 51.8%
  • 24.4% or 77 million of the above customer base are 4G customers
  • Total MBs on the network: 3216 million GBs, increase of 190.9%
  • Data usage per customer: 10.5 GB, increase of 98.6%

Coverage:

  • Census Towns: 7,906
  • Non-census towns and villages: 786,134
  • Population covered: 95.3%
  • Optic fibre network: 273,600 R kms
  • Network towers: 175,300 towers, growth of 11,492
  • Of the above, 164,859 towers are mobile broadband towers
  • Homes Services cities covered: 90 cities
  • Airtel business submarine cable systems: 7
  • Digital TV: 639 districts covered, 99.8% coverage

Airtel Payments Bank:

  • Active users: 5.7 million for the 2 months ended December 31, 2018
  • Revenue: Rs 41 crore
  • EBITDA: Loss of Rs 47.7 crore
  • Net income: Loss of Rs 49.7 crore

Other notes from India business

  • 4G services were launched in the Andaman & Nicobar Islands in January 2019 
  • Airtel and Ericsson conducted a Licensed Assisted Access (LAA) test over live LTE network. LAA enables high speed mobile broadband, combining the use of unlicensed spectrum in 5GHz band with licensed spectrum
  • Launched Google Assistant based customer care
  • Announced a content partnership with Bengali content app Hoichoi for featuring content on its own OTT app Airtel TV
  • Wynk Music claims to have 100 million users (unclear if daily, monthly or registered)

Conslidated Global Metrics

  • Total Customer Base: 403.6 million in Q3, 413.8 million in 2018
  • Total Minutes on Network: 768 billion minutes in Q3, 2159 billion minutes in 2018
  • Network Towers: 198,093 in Q3, 187,541 in 2018
  • Total Employees: 20,471 in Q3, 22,815 in 2018
  • Number of countries of operation: 18
  • Population Covered: 2 billion

Customers

Mobile services total: 384.65 million

  • India: 284.22 million
  • Africa: 2.5 million
  • South Asia: 97.92 million

Homes services:

  • Customers: 2.245 million, 3.8% growth
  • Net additions: 33,000, over 600% growth
  • APRU: Rs 821 ($11.4), 13.4% fall

Digital services

  • Customers: 15 million
  • Net additions: 222,000, 46.6% fall
  • APRU: Rs 231 ($3.2), 1% fall
  • Monthly churn: 1.3%

Airtel business: 1.797 million customers

Traffic

  • Mobile services total: 757.24 billion minutes
    • India: 702.88 billion minutes, 42% growth  
    • Africa: 52.44 billion minutes, 25% growth
    • South Asia: 1.919 billion minutes, 36.7% growth
  • Homes services: 3.69 billion minutes, 20.4% growth  
  • Airtel business: 2.74 billion minutes, 4.3% fall
  • Long Distance services:
    • National: 97.9 billion minutes, 48.6% growth  
    • International: 4.423 billion minutes, 19.2% fall
  • Net total minutes on the network: 768.02 billion minutes, growth of 39.8%

Africa metrics

  • Customers: 97.922 million, 16.4% growth
  • Net customer additions: 3.82 million, 29% fall
  • Monthly churn: 4.7%
  • ARPU: US $3

Voice:

  • Revenue: $526 million, 3.7% growth
  • Network minutes: 52.44 billion, 25% growth
  • Voice ARPU: US $1.8, 12% fall
  • Voice usage per customer: 183 minutes, 6.2% growth

Data:

  • Revenue: $192 million, 28.6% growth
  • Customers: Almost 30% or 29.26 million of consumer base are data customers, 25.5% growth 
  • Total MBs on network: 105.33 millions GBs, 60.7% growth
  • Data ARPU: US $2, 0.1% growth
  • Data usage per customer: 1.248 GBs, 20% growth

Airtel Money:

  • Transaction Value: US $6.9 billion, 29% growth
  • Transaction value per subscriber: US $166, 8.6% fall
  • Revenue: US $68 million
  • Active customers: 13.8 million
  • Airtel Money ARPU: US $1.6

Network & Coverage:

  • Towers: 20,582 towers, 8% growth
  • Owned towers were 4,441, and leased towers were 19,141 towers
  • 15,734 of the total towers are mobile broadband towers
  • Total mobile broadband base stations: 29,650 towers
  • Monthly revenue per site: US $13,954

Download Results: Standalone | Consolidated | Quarterly Report