Q2FY25: Bharti Airtel's sales and marketing expenses up 6%

Bharti Airtel's Q2 FY24 financial results, dated till September 30 of this year, showcase a strong year-on-year surge, as it capitalizes on steady domestic growth and robust performance in Africa. Airtel’s consolidated net profit rose to Rs 3,593 crore, marking a significant 168% year-on-year increase. This uptick was supported by a 12% year-over-year growth in total revenue, now reaching Rs 41,473 crore.

This came as Bharti Airtel named COO Shashwat Sharma as next MD and CEO during the earnings call yesterday.

According to reports, the company's sales and marketing expenses increased 6.14 per cent Q-o-Q to Rs 2,882 crore in Q2 FY25 from Rs 2,715 in the last quarter of the same financial year. While not reaching analyst expectations, the Indian segment was still a standout, showing 16.9% revenue growth, which was driven by an 18.5% increase in mobile services income. The Average Revenue Per User (ARPU) climbed to Rs 233, up from Rs 203 last year, illustrating Airtel's success in growing its premium customer base.

For advertisers, this growth reflects Airtel’s appeal in capturing higher-value audiences, particularly as its customer base in India has expanded to close to 407 million users according to the company. Airtel’s homes business, which saw revenue rise by 17.3% year-over-year, is also strengthening its position, likely benefiting advertisers targeting connected household audiences.

Also, Airtel’s DTH sub base continued to decline with a drop of 546,000 subscribers in Q2 FY’25 to 15.8 million as against a loss of 196,000 subs in the previous years’ corresponding quarter.

Airtel's notable expansion across multiple verticals presents new opportunities for brand marketers to leverage a highly engaged user base. As the company continues to invest in customer-centric innovations and network expansion, it solidifies its role not only as a telecom provider but as a key player in the evolving digital advertising ecosystem.

Meanwhile, Bharti Airtel recently announced changes to its leadership team, as the telecom company plans to separate its Direct-to-Home (DTH) and entertainment units as part of a new restructuring strategy. Airtel will also establish customer experience as a standalone function.

The company reportedly plans to separate its Direct-to-Home (DTH) and entertainment units as part of a new restructuring strategy. Airtel will also establish customer experience as a standalone function.

According to media reports, Airtel plans to separate DTH from the converged entertainment category, creating two distinct areas: Connected Homes—which will include Broadband and Converged Entertainment—and DTH.