Bharti Airtel Limited recently announced its audited consolidated IFRS results for the first quarter ended June 30, 2015.
In a statement, Gopal Vittal, MD and CEO, India and South Asia, said, “The year has begun on a healthy note, with underlying revenue growth accelerating to 12.7 per cent in India. Our customer base has continued to steadily expand. Mobile minutes and data traffic have grown by 7.4 per cent and 83.4 per cent respectively. I am pleased that our revenue growth is broad based across all business units, especially the domestic enterprise and corporate segment, which saw revenues grow by 18.1 per cent, and DTH business which had an underlying topline growth of 26.8 per cent. Our capex programme is mostly directed at increasing 3G/4G coverage and improving all-round customer experience.”
The consolidated revenues for Q1FY16 at Rs 23,671 crore grew by 3.1 per cent over the corresponding quarter last year. Consolidated mobile data revenues at Rs 3,459 crore grew by 56.9 per cent YoY, uplifted by data traffic growth of 86.5 per cent.
India revenues reported a growth of 10.0 per cent YoY, led by 22.2 per cent in ‘Airtel business’ (B2B) and 15.8 per cent in Digital TV. Adjusted for the impact in reduction of termination rates, India revenues grew on an underlying basis by 12.7 per cent and mobile revenues by 12.2 per cent YoY. Mobile data revenue at Rs 2,609 crore registered a growth of 67.3 per cent YoY in India, uplifted by increase in the data customer base by 25.8 per cent and traffic by 83.4 per cent. Data ARPU has moved up by Rs 42 to Rs 181 in Q1FY16, led by 42.7 per cent increase in data usage per customer. Mobile data revenues contribute to 19.2 per cent of Mobile India revenues vis-à-vis 12.4 per cent in the corresponding quarter last year.
In constant currency terms, Africa revenues grew by 1.0 per cent YoY. Data revenues stood at $ 128 million with growth of 48.5 per cent YoY, led by increase in data customer base by 31.9 per cent and traffic by 111.6 per cent. Data ARPU increased to $ 3.3 from $ 3.0 in the corresponding quarter last year. Data revenues contribute to 12.9 per cent of overall Africa revenues vis-à-vis 8.8 per cent in the corresponding quarter last year. Active Airtel Money customer base increased to 7.0 million, boosting the total transaction values on Airtel Money platform by 72.6 per cent to US$ 3.3 billion.
Consolidated EBITDA at Rs 8,262 crore grew by 6.4 per cent YoY with EBITDA margin expanding by 1.1 per cent to 34.9 per cent, driven by India’s margin expansion by 2.1 per cent YoY. The resultant consolidated EBIT of Rs 4,216 crore represents a YoY growth of 14.2 per cent, with EBIT margin improving by 1.7 per cent. Net interest costs of Rs 1,139 crore have risen from Rs 656 crore in the same quarter last year. Adverse currency movements resulted in forex and derivative losses of Rs 780 crore, significantly higher than Rs 301 crore in the first quarter last year. After accounting for exceptional items (net gains of Rs 458 crore), the consolidated net income increased by 40.2 per cent to Rs 1,554 crore.
The company’s consolidated net debt excluding the deferred payment liabilities to the DOT and finance lease obligations is now at $ 7,640 million. During the quarter, tower disposals to the tune of $ 1,340 million were closed. The Board has approved the establishment of sponsored Level 1 ADR program in the United States, subject to all subsequent regulatory approvals and clarifications from SEBI and RBI. These ADRs can be traded on the US OTC market.
Commenting on the results, Christian de Faria, MD and CEO, Africa, said, “In the first quarter, Airtel Africa has set the pace for the year, with customer base growing by 13.4 per cent to 78.3 million. Customer churn has been reduced from 7.0 per cent to 5.4 per cent, as a result of customer lifecycle management programmes. Minutes grew by 16.0 per cent, while data volumes have more than doubled. The data customer penetration at 16.6 per cent reflects the untapped potential in the internet space. I am particularly delighted to report that 7.0 million Airtel Money customers are transacting more than $ 1 billion of money every month. We are also satisfied with continued profitable growth in Nigeria.”