The Hindu Business Line : Bharti’s Q2 profit up 27%

New Delhi, Oct. 31 A record growth in the subscriber base has boosted Bharti Airtel’s second quarter profits by 27 per cent as against last year’s, but key operational parameters including average revenue per user and minutes of usage have declined sequentially.

The company also reported foreign exchange losses of Rs 586 crore during the quarter. Bharti Airtel has generated cash flow of Rs 400 crore during the quarter, making it the first private telecom company to do so.

The consolidated total revenues for the quarter ended September 30, 2008 grew 42 per cent to Rs 9,020 crore.

Bharti had 7.99 crore subscribers at the end of the second quarter, which is a 57-per cent increase over that in the corresponding period last year. Mr Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Ltd, said, “With record customer additions every month, Airtel continues to consolidate its leadership position in the market. The successful launch of DTH service has provided another opportunity to the brand to strengthen its connect with the customers, while generating a new revenue stream.”

The scrip rose 5.5 per cent on the Bombay Stock Exchange, from Rs 615 on Thursday to close at Rs 649.

The mobile business accounted for 81 per cent of total revenues. The company’s average revenue per mobile user had decreased from Rs 350 per month during the first quarter this year to Rs 331. The minutes of usage per user had dipped from 534 to 526 quarter-on-quarter.

On the losses due to weakening rupee against the dollar, Mr Akhil Gupta, Deputy Group CEO, said, “We hedge a significant portion of our loans. The loss of Rs 586 crore is due to the accounting on foreign exchange and derivatives This happens in every quarter.”

The company informed that it has received additional spectrum in 3 circles and is open to international acquisitions.