Costs, shrinking ARPU hit Bharti net

Costs, shrinking ARPU hit Bharti net

Dylan Bushell-Embling  |   November 11, 2010
telecomasia.net
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India's Bharti Airtel said its profit for the September quarter fell 27%, on soaring expansion costs and price pressures at home.
 
The company reported net profit of 16.6 billion rupees (€271.3m).
 
Revenue grew 47.9% during the first full quarter of operations under the Bharti umbrella for the African assets acquired from Zain. These units contributed $866 million (€628m) to revenue during the quarter.
 
But operating expenses grew by 75%, mostly due to costs related to expansion, Bharti said. Capital expenditure was 33 billion rupees, and 3.7 billion of this was also spent in Africa.
 
Earnings were also impacted by a decline in Asian ARPU to 202 rupees per month, from 215 rupees a quarter earlier, from intense price competition in the domestic market.
 
ARPU from Bharti's African operations was the equivalent of $7.50 per month, compared to $4.50 in India and south Asia.
 
The company added 52.2 million mobile customers in India, or 2% - the slowest rate of subscriber growth among India's six major cellcos. Bharti's market share in India was an estimated 20.8% at the end of the quarter.
 
Its African units added a combined 3.7 million customers, to bring the total to 40 million.
 
Bharti in February agreed to buy the African units of Kuwait's Zain Telecom in 16 African nations for $10.7 billion.

 

Dylan Bushell-Embling

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