Africa weighs on Airtel’s Q2 results

Bharti Airtel reported solid figures for the quarter to June 30, although strength in its home market of India contrasted with a poorer performance for its African operations.

The company reported a profit attributable to shareholders of INR11.09 billion (US$184.42 million), up 60.9 per cent year-on-year, on revenue of INR229.62 billion, up 13.3 per cent.

Mobile data revenue was INR22 billion (accounting for 9.6 per cent of total revenue), up 73.9 per cent year-on-year, with growth across its geographies.

The company counted 287.15 million mobile subscribers at the end of the period, up 1.3 per cent during the quarter. The lion’s share of these came from India (205.52 million), which saw an increase of 1.9 per cent in the three months.

For its Indian mobile services, Airtel saw an EBIT of INR29.5 billion, up 40.6 per cent, on revenue of INR127.53 billion, up 9.9 per cent.

For its African operation, while Airtel reported an EBIT for INR2.8 billion for the unit, down 23.7 per cent, it also said that the unit saw a net loss of INR8.2billion, widening from an INR2.99 billion loss in the prior-year period.

Revenue for the African operation increased 17.5 per cent to INR69.69 billion.

The company noted a number of positive trends impacting Africa, including a return to growth for the telecom industry, “spearheaded by mobile Internet and money”.

It also said that much of the increased loss was attributable to foreign exchange issues.

Christian de Faria, MD and CEO, Africa, said: “With Niger and Chad having obtained licences, we will now have 3G presence in all 17 countries. Our investments in licences, networks and marketing are directed towards sustaining double-digit revenue growth”.