Airtel's streaming business reports operating revenue of Rs 553.3 crore in FY21

The company's advertisement revenue jumped 49% to Rs 72.7 crore from Rs 48.8 crore

e4m by exchange4media Staff
Updated: Oct 7, 2021 6:06 PM
Airtel Digital

Airtel Digital, the company which houses the streaming business of telecom major Bharti Airtel, has posted flattish revenue growth of Rs 553.3 crore for the fiscal ended 31st March 2021, as against Rs 546.6 crore in the previous fiscal.

During the fiscal under review, the company reported 25.29% growth in subscription revenue at Rs 355.6 crore compared to Rs 476 crore. Advertisement revenue jumped 49% to Rs 72.7 crore from Rs 48.8 crore. Revenue from XStream stick sale nosedived by 88% to Rs 2.6 crore from Rs 21.8 crore.

The company also reported platform usage charges of Rs 48.9 crore and SMS & Data revenue of Rs 73.5 crore. The company didn't report revenue for both these product/service lines in FY20.

The company's net loss widened 2.7 times to Rs 204.5 crore from Rs 76.7 crore. The company's expenses widened 14% to Rs 689.9 crore from Rs 607.5 crore. The company incurred content cost of Rs 511.3 crore, compared to Rs 506.5 crore. Sales and marketing expenses zoomed 3.8 times to Rs 28.6 crore from Rs 7.5 crore.

Airtel Digital's main objective is to procure, aggregate, and provision of content services and sale of products to its B2B and B2C customers. The company has also started platform usage, advertisement, and voice/data services during the year.

The company changed its name from Wynk Limited to Airtel Digital Limited from 12th March 2020. It owns two streaming platforms, Wynk Music and Airtel Xstream.

As per the company's FY21 annual report, Wynk Music remains one of the top 3 music streaming services in India. The performance metric underlines the massive user preference for Wynk Music when it comes to consuming music on smartphones – it crossed 72.5 million monthly active users (MAU). Airtel Xstream, the video and LIVE TV streaming app from Airtel, crossed 37.5 million MAU, underlining its growing popularity amongst smartphone users as the go-to destination for digital content.

"The focus is to strengthen digital reach by powering the core digital properties of Airtel such as Wynk music, Airtel TV, and Airtel Xstream. These are driving enhanced customer experience, lower churn rate and improved ARPUs. Also investing in digital channels like Airtel Thanks app & have led to tremendous growth in customer interaction," the company said in its annual report.

Bharti Airtel had announced a new corporate structure on April 14, 2021 to sharpen its focus on driving the rapidly unfolding digital opportunity in India while enabling it to unlock value. To give effect to this proposed rearrangement, the Board of Directors of the Company, in its meeting held on April 14, 2021, has approved the composite scheme of arrangement between the Company, Nettle Infrastructure Investments Limited, Airtel Digital Limited, Telesonic Networks Limited and Airtel Limited for amalgamation of Nettle Infrastructure Investments Limited, Airtel Digital Limited and Telesonic Networks Limited, wholly-owned subsidiaries with and into Bharti Airtel Limited; and (b) demerger of the Telecom Business Undertaking of Bharti Airtel Limited and vesting of the same with Airtel Limited, its wholly-owned subsidiary on a going concern basis.

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