Airtel Q2 profit falls 76.5% to Rs 343 crore on tariff wars

Airtel Q2 profit falls 76.5% to Rs 343 crore on tariff wars

In fact, net profit before exceptional items for India came in at Rs 121.4 crore, compared with Rs 306.7 crore for Airtel's Africa operations, underlining the pressures on the local operations, while operations in Africa show continued signs of improving, say analysts.

The telecom operator's consolidated revenues for the reporting quarter, at Rs 21,777 crore, represented a year-on-year drop of 10.4 per cent on an underlying basis when adjusted for Africa and Bangladesh divested operating units and tower asset sale.

Consolidated revenue declined almost 12% to Rs 21,777 crore from a year earlier as data and voice rates fell.

Mobile market continues to experience value erosion and financial stress led by competitive pressures, Airtel mentioned in the statement.

Bharti Infratel's net profit went down by 17 per cent for the July-September quarter of 2017-18, a company statement said on Monday.

Revenue from its Africa business was strong for the quarter ended September 2017, rising 7.2 percent to Rs 5,203 crore and EBITDA shot up 23.7 percent to Rs 1,684.1 crore with whopping margin expansion of 430 basis points at 32.3 percent compared with previous quarter.

He added that this would eventually force operator consolidation and exits as witnessed in the recent past.

Ever since Reliance Jio entered the market in September a year ago, Airtel as well as others have seen their profits slide.

And it's TERRIFYING: NASA releases audio of what space REALLY sounds like
The eerie sound is similar to the emissions recorded on Earth during the aurora borealis in the northern hemisphere. The radio waves from Saturn are closely related to the auroras near the poles of the planet.

However the company said its mobile data traffic has increased fourfold.

It can be recalled that Reliance Jio had launched its services, offering all services free of cost, exactly at the same time past year. Net debt excluding the deferred payment liabilities to the Telecom Department and finance lease obligations increased by Rs 2,554 crore sequentially in the quarter, the company added. The net profit for Africa (before exceptional items) for the September quarter stood at Rs 306.7 crore.

However, mobile data traffic has grown fourfold to 784 billion MBs in the quarter as compared to 178 billion MBs in the corresponding quarter past year.

The company said its consolidated net debt has increased to Rs 91,480 crore from Rs 87,840 crore in the previous quarter.

"Mobile data traffic has grown fourfold to 784 billion MBs in the quarter as compared to 178 billion MBs in the corresponding quarter a year ago".

Average revenue per user (ARPU) fell 6% to Rs 145 in Q2 FY18.

Shares of Bharti Airtel ended 0.98% higher in Mumbai trading before the release of the earnings, while the benchmark S&P BSE Sensex closed 0.2% lower.

Consolidated Ebitda (earnings before interest, taxes, depreciation and amortisation) at Rs 8,004 crore declined 15.4 per cent year-over-year and Ebitda margin dropped 1.6 per cent to 36.8 per cent over the same period.

Related Articles

  • Hamas tunnel discovered under United Nations  school in Gaza

    Hamas tunnel discovered under United Nations school in Gaza

    Hamas is due to hand control of Gaza back to the Palestinian Authority by 1 December under the agreement . Islamic Jihad threatened a reprisal.
    First Destiny 2 Expansion Releases On December 5th

    First Destiny 2 Expansion Releases On December 5th

    The PlayStation 4 Twitter account announced Monday that Bungie will release the expansion, called " Curse of Osiris ", Dec. 5. It's due on December 5, and will feature the lore-heavy character of Osiris himself, as well as some Vex shenanigans.
    McElwain fired as Florida Gators football coach

    McElwain fired as Florida Gators football coach

    Florida officially announced on Sunday that Jim McElwain is out as the school's head football coach. The Gators' offense is ranked 112th in yards per game this season .
  • PM flags off 'Run for Unity', slams Cong for ignoring Patel

    PM flags off 'Run for Unity', slams Cong for ignoring Patel

    He flagged off the Run for Unity in Jammu and said that the run was for re-discovering Patels legacy to unite the country. In a veiled attack on Congress, he said, "People tried to ensure the contribution of Sardar Patel is forgotten.
    Court blocks Donald Trump's transgender army ban

    Court blocks Donald Trump's transgender army ban

    As the news spread on Twitter, transgender people and advocates shared their relief that at least the ban had been blocked. The Trump administration may appeal Kollar-Kotelly's decision , but for now, the proposed ban remains unenforceable.
    Wind advisory Sunday pm-Monday am; strongest winds overnight

    Wind advisory Sunday pm-Monday am; strongest winds overnight

    Low pressure will deepen off Mid Atlantic coast this afternoon and evening and shift into into New England Monday morning. With the very strong jet streams, thunderstorms are also possible but this element of the forecast is not as likely.
  • Netflix Announces House of Cards to End Amid Kevin Spacey Scandal

    Netflix Announces House of Cards to End Amid Kevin Spacey Scandal

    In a statement, Netflix said: 'Media Rights Capital and Netflix are deeply troubled by last night's news concerning Kevin Spacey . A spokesperson for the festival tells me that plan remains in place. "I was aware that he was trying to get with me sexually".
    Linkin Park Performs Chester Bennington Tribute Concert

    Linkin Park Performs Chester Bennington Tribute Concert

    Blink-182, Avenged Sevenfold , Takahiro " Taka " Moriuchi of ONE OK ROCK , and Deryck Whibley were some of those who performed. Linkin Park & Friends Celebrate Life In Honor of Chester Bennington will begin at 2.45am Irish time Saturday 28 October.
    Annabella Sciorra is latest to accuse disgraced Harvey Weinstein of rape

    Annabella Sciorra is latest to accuse disgraced Harvey Weinstein of rape

    The 57-year-old actress claimed she met Harvey in the beginning of the 90's after appearing in the film, The Night We Never Met . Harvey Weinstein , who recently did a week at a therapy facility, denies all allegations of nonconsensual sex.
  • Kabul bomb blast: Explosion in embassy zone causes multiple casualties

    Kabul bomb blast: Explosion in embassy zone causes multiple casualties

    A suicide bomber reportedly detonated an explosive device inside Kabul's 'Green Zone' in the vicinity of the Australian embassy. The last major assault in Kabul was on October 21 when a suicide attacker hit a busload of Afghan army trainees, killing 15.
    Total bomb': Trump in Twitter spat with filmmaker Michael Moore

    Total bomb': Trump in Twitter spat with filmmaker Michael Moore

    Moore's show, The Terms of My Surrender , was billed as a 12-week limited engagement when it was first announced in May. However, according to Playbill's report, that was not the case, since it was already scheduled to end October 22.
    India versus New Zealand 3rd ODI: India 337/6 in 50 overs

    India versus New Zealand 3rd ODI: India 337/6 in 50 overs

    The run machine Kohli also brought up his 32nd ODI ton and became the first captain to smash six tons in a calendar year. Kohli also became the first batsman to amass 2000 runs in global cricket in 2017.