Latest
Recommended
Published: Wed, July 26, 2017
Economy | By Melissa Porter

Bharti Airtel Results :Bloodbath On The Streets; Net Profit Down By 75%

Bharti Airtel Results :Bloodbath On The Streets; Net Profit Down By 75%

The profit was impacted by the price war introduced by Reliance Jio. Mobile data revenue fell 17% on-year to 37.7 billion rupees, while traffic more than doubled.

"The pricing disruption in the Indian telecom market caused by the entry of a new operator continued with industry revenues declining over 15% Y-o-Y, creating further stress on sector profitability, cash flows and leverage".

"Consequently, our revenues declined 10% and EBITDA margin eroded by 5.3% Y-o-Y".

"Jio is likely to roll out other offers to increase its subscriber base over the next two years, and incumbents are likely to continue to respond with price cuts, discounts, and promotions of their own", the report said, adding that Reliance Jio's revenue market share is lower on aggressive pricing.

The latest June quarter bottomline performance was weighed down by 10 per cent decline in India revenues, primarily due to revenues from mobile market dropping 14.1 per cent. As a result, our network witnessed data and voice traffic growth of 200 per cent and 34 per cent year-n-year respectively. "We also added 5.2 Mn data customers in the last quarter - our highest ever", Gopal Vittal, MD and CEO, India & South Asia, said in a statement.

JioPhone Specifications Features Launched Mukesh Ambani Jio Phone specifications Single SIM variant
Reliance Jio has the slowest average 4G speeds in India: OpenSignal

India's largest mobile-phone operator, which had registered a net income of ₹1,462 crore in April-June 2016 quarter, posted a 14% decline in consolidated revenue to ₹21,958 crore from ₹25,546 crore in the year-earlier period.

A CNBC-TV18 poll estimated India business revenue at Rs 12,790 crore, with operating profit at Rs 4,400 crore and margin at 34.3 crore for the quarter.

The company's consolidated net debt has decreased to Rs 87,840 crore from Rs 91,400 crore in the previous quarter. Lower EBITDA along with rising spectrum interest and amortization costs has resulted in deterioration of Return on Capital Employed (ROCE) to 5.6% from 7.6% in the corresponding quarter previous year. The Consolidated net profit is expected to fall 42% QoQ (85% YoY) to Rs 2.2 billion. Mobile data revenues now represent 17.1 per cent of total revenues against 18.2 per cent in the corresponding quarter past year.

Today, Bharti Airtel and Idea Cellular has filed a petition against the Telecom Regulatory Authority of India (TRAI) at the Telecom Dispute Settlement and Appellate Tribunal (TDSAT).

Like this: