Business Daily from THE HINDU group of publications
Friday, Jul 27, 2007
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Business Daily from THE HINDU group of publications Friday, Jul 27, 2007 ePaper |
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Financial Performance Corporate Results - Telecommunications Info-Tech - Financial Performance
Our Bureau New Delhi, July 26 Riding on a big growth in its mobile subscriber base, Bharti Airtel Ltd has reported a 100 per cent increase in its net profit at Rs 1,512 crore for the first quarter ended June 2007. The company added 57 lakh new subscribers during the quarter, which is the highest ever net addition in a single quarter. The company’s revenues increased by 53 per cent to Rs 5,905 crore (Rs 3,856 crore) as per the US GAAP results announced on Thursday. During the quarter, the subscriber base grew from 24.5 million users in June 2006 to 44.6 million. Of this, 42.7 million were mobile users and the rest were from broadband and fixed line telephone service. As a result, the mobile segment contributed 80 per cent of revenues during the quarter at Rs 4,697 crore (Rs 2,841 crore). Bharti’s long distance business accounted for Rs 921 crore in revenues while its enterprise and broadband segments added Rs 1,194 crore and Rs 651 crore respectively. While Airtel’s market share in the cellular segment has gone up to 23.5 per cent (21.1 per cent), its share of net additions of mobile users has dipped to 29.3 per cent from 32.6 per cent during the fourth quarter. Subscribers
Average revenue per user has decreased to Rs 390 per month from Rs 406 in the previous quarter sequentially and from Rs 441 a year ago. Bharti’s churn rate, which is the rate at which mobile subscribers give up their connection, during the quarter under review has increased to 4 per cent (3.6 per cent). The company’s network continued to grow — now covering 4,855 towns compared with 4,676 towns in March this year. It has a network that covers 62 per cent of the population. Bharti has so far invested Rs 35,806 crore on its network of which its mobile infrastructure accounts for 74 per cent. The company is planning to invest another $3.5 billion this fiscal year. It also plans to de-merge its tower infrastructure into a separate company by October to unlock its value by selling a stake. Bharti is one of the main contenders along with Vodafone Essar, Reliance Communications and Idea Cellular, for bidding for third generation mobile licenceBharti’s share price dipped 2.28 per cent on the Bombay Stock Exchange to close at Rs 925 (Rs 946) . Mr Sunil Bharti Mittal, Chairman & Managing Director, said: “Bharti Airtel has maintained the growth momentum and further consolidated its market leadership in the wireless segment. We believe that the Indian telecom sector is entering the next phase of growth.”
Related Stories: More Stories on : Financial Performance | Telecommunications | Financial Performance | Bharti Tele-Ventures Ltd
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