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.

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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.

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