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Airtel's DTH unit clocks Rs 3153.8 cr revenue in FY22 amid declining subs growth

The telecom firm’s capital expenditure in the DTH business stood at Rs 1302.7 crore as against Rs 1284.3 crore in FY21

e4m by exchange4media Staff
Published: May 18, 2022 8:33 AM  | 3 min read
Airtel

Bharti Airtel's direct to home (DTH) segment has posted a slower revenue growth in FY22 due to a declining subscriber base. Airtel Digital TV, the DTH brand of Bharti Airtel, has posted a 3% growth in revenue at Rs 3153.8 crore in FY22 compared to Rs 3056.2 crore in FY21.

EBITDA for the fiscal rose 1% to Rs 2100.6 crore compared to Rs 2078.9 crore. The margin was down 1.4% percentage point to 66.6% from 68% in FY21. EBITDA was down by a whopping 24% to Rs 837.4 crore from Rs 1101.1 crore.

The telecom giant's capital expenditure in the DTH business stood at Rs 1302.7 crore as against Rs 1284.3 crore in FY21. The operating cash flow from the segment came in at Rs 797.9 crore as against Rs 794.6 crore.

The company's subscriber base declined by 0.9% to 17.56 million in FY22 compared to 17.72 million in FY21. Average Revenue Per User (APRU) was down 1.5% to Rs 142 from Rs 144 in the prior fiscal. The monthly churn rate came down to 2.1% in March 2022 against 2.2% in March 2021.

For the fourth quarter ender 31st March, revenue from Digital TV services was down 2% at Rs 755.2 crore vis-à-vis Rs 767.3 crore in the corresponding quarter last year.

EBITDA for this segment was down 3% at Rs 495.2 crore as compared to Rs 510.5 crore in the corresponding quarter last year. EBITDA margin was down 1% percentage point at 65.6% in the current quarter as compared to 66.5% in the corresponding quarter last year.

EBIT for the quarter shrank by 45% to Rs 137.1 crore as compared to Rs 248.4 crore in the corresponding quarter last year. The resultant EBIT margin was at 18.2% as compared to 32.4% in the corresponding quarter last year and 26.5% in the previous quarter.

During the quarter, the company incurred a capital expenditure of Rs 314.3 crore, which is a 15% decline from Rs 369 crore in the previous fiscal.

The company lost 508,000 subscribers in Q4 compared to net additions of 79,000 subscribers in Q3. In Q4 FY21, the DTH segment had seen a loss of 156,000 subscribers.

As of March 31, 2022, the company had its Digital TV operations in 639 districts. Airtel Digital TV currently offers a total of 670 channels including 84 HD channels (including 1 HD SVOD service), 56 SVOD services, 5 international channels, and 4 interactive services.

The company also provides fixed-line telephone and broadband services for homes in 847 cities (including LCOs) pan-India. The product offerings include high-speed broadband on copper and fiber and voice connectivity, up to the speeds of 1 Gbps for the home segment.

The company's revenue from the Home services (broadband) segment rose 30% to Rs 3039 crore in FY22 compared to Rs 2334.2 crore in FY21. EBITDA was up 20% to Rs 1613.9 crore from Rs 1343.4 crore. EBITDA margin declined by 4.4% to 53.1% from 57.6%.

EBIT increased by 11% to Rs 576.6 crore compared to Rs 520.3 crore. During the fiscal, the company's Capex deployment surged 49% to Rs 1642.1 crore against Rs 1100.9 crore.

On a quarterly basis, the segment witnessed revenue growth of 45.8% YoY and customer net additions of 323,000 during the quarter to reach a total base of 4.5 million in Q4’22. On a YoY basis, the customer base increased by 46.2%.

For the quarter ended March 31, 2022, revenues from Homes operations were Rs 876.2 crore as compared to Rs 600.9 crore in the corresponding quarter last year. The company accelerated LCO partnerships in non-wired cities, taking up the LCO partnership model live in 761 cities.

EBITDA for the quarter stood at Rs 477.4 crore as compared to Rs 334.5 crore in the corresponding quarter last year. EBITDA margin stood at 54.5% during the quarter as against 55.7% in the corresponding quarter last year. EBIT for the quarter was Rs 192.8 crore as compared to Rs 124 crore in the corresponding quarter last year. The resultant EBIT margin was at 22% as compared to 20.6% in the corresponding quarter last year.

During the quarter ended March 31, 2022, the company incurred a Capex of Rs 496.8 crore compared to Rs 332.5 crore.

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