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80% of Airtel’s revenue from cellular operations

Our Bureau

New Delhi, Jan 30 More than 80 per cent of the revenues of leading telecom player, Bharti Airtel, during the third quarter (October-December 2007) have been contributed by the cellular business.

Average revenue per user

However the average revenue per user (ARPU) for the company has declined 16 per cent to Rs 358 per month from Rs 427 in the corresponding quarter of the previous year.

Mr Akhil Gupta, Joint Managing Director, Bharti Group, said that it was not a cause of worry as Bharti’s business model was not based on ARPU. Average minutes of usage increased 1 per cent to 474 per subscriber per month.

Pre-paid segment

Monthly churn for the pre-paid segment has reduced to 3.9 per cent a month from 4.8 per cent in the previous year. Revenues from both SMS and other non-voice applications have declined to 4.4 per cent and 9.3 per cent respectively. Last year, the two services accounted for 6.2 per cent and 10.4 per cent of the mobile revenues respectively.

Bharti Airtel’s revenues and net profit for the nine months ended December 31, 2007 were Rs. 19,206 crore and Rs. 4,848 crore, a growth of 46 per cent and 67 per cent over the same period last year respectively.

More Stories on : Financial Performance | Bharti Tele-Ventures Ltd | Telecommunications

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