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Bharti Airtel on Tuesday reported consolidated net profit of ₹1,461 crore for the second quarter ended September 30, down 5 per cent mainly on account of increased spectrum-related costs and devaluation of Nigerian currency.
The telecom major reported a profit of ₹1,536 crore in the corresponding period last year.
“Net interest cost surged to ₹1,603 crore from ₹1,053 crore in the corresponding quarter last year — largely due to spectrum-related expenditure,” the company said, adding that the growth of Airtel’s mobile business in India slowed down due to launch of free mobile service by Reliance Jio. “The mobile business has experienced a slowdown in growths due to free services being offered by a new operator,” Gopal Vittal, Managing Director and Chief Executive Officer, India and South Asia, Airtel, said.
Total income rises 3.4% However, the consolidated total income for the quarter rose 3.4 per cent year-on-year (YoY) to ₹24,652 crore from ₹23,836 crore in July-September quarter last year.
India revenue for the quarter was recorded at ₹19,219 crore, up 10 per cent YoY, the company said, adding that the data revenues now contribute to 24.7 per cent of mobile India revenues as against 21.5 per cent in the corresponding quarter last year.
“Our strong focus on enhancing customer experience and building a robust network has resulted in continued acceleration of revenue market share. Overall revenue momentum in India has been sustained during the second quarter with a growth of 10.1 per cent YoY,” Vittal, said.
Over the last two quarters, the company had divested two country telecom operations (Burkina Faso and Sierra Leone) in Africa.
Effective current quarter, financials and operational parameters have been shown for balance 15 countries and the historical periods have been re-instated to make them comparable, it said. “We remain excited about the long-term opportunity in India and believe that with the recently acquired spectrum, we are well positioned to lead India’s data revolution,” he added.
Shares of Airtel closed at ₹311.05 on the BSE on Tuesday, up 1.48 per cent from the previous close.
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