Bharti Airtel Q3FY33 Results: Consolidated Profit fell 2.8% YoY to Rs 830 crore; Revenue jumps 12.6%

Telecom major Bharati Airtel today reported a 2.81 per cent year-on-year (YoY) decline in the consolidated profit at Rs 829.6 crore for the quarter ended December 31, 2021, against a profit of Rs 853.6 crore it posted in the corresponding quarter of the previous financial year.

However, the telecom major has reported a 12.62 per cent YoY rise in the consolidated revenue from operations at Rs 29,866.6 crore in the reported third quarter against Rs 26,517.8 crore of last year's corresponding quarter. The revenue increase was backed by strong and consistent performance delivery across the portfolio. It was also led by recent tariff hikes and subscriber additions.

Consolidated EBITDA for the quarter rose 22.4 per cent YoY to Rs 14,905 crore. EBITDA expansion was broad-based and the portfolio remains well balanced with India non-mobile and Africa business contributing 17.0 per cent and 30.1 per cent respectively and India mobile contributing 52.9 per cent. This led to an improvement in EBITDA margin from 45.9 per cent in Q3FY21 to 49.9 per cent in Q3FY22. Incremental EBITDA margins across businesses remained healthy, with India mobile services EBITDA improving from 43.7 per cent in Q3FY21 to 49.4 per cent in Q3FY22.

Airtel's average revenue per user (ARPU) was Rs 163 for the third quarter, up from Rs 146 a year ago.

Gopal Vittal, MD and CEO, India & South Asia, said, "We have delivered another quarter of sustained performance across all our business segments. Overall Sequential revenue growth was at 5.4 per cent and EBITDA margins came in at 49.9 per cent. The recent tariff revision for mobile services has gone down well and we are exiting the quarter with an industry-leading ARPU of Rs 163. The full impact of the revised mobile tariffs, however, will be visible in the fourth quarter. Our Enterprise, Homes and Africa business continue to deliver strongly with a steady increase in contribution to the overall mix of the portfolio. Our balance sheet is robust and we are now generating healthy free cash flows. This has enabled us to recently prepay some of our spectrum liabilities to the Government thereby reducing the interest burden."

He further added, "Google's recent investment is a strong validation of Airtel's role in being a leading pioneer of India's digital revolution. Our emerging digital services portfolio across Airtel IQ, AdTech, digital marketplace, Nxtra and digital banking positions us well to build an Airtel of the future."

Major Highlights

• India business posts quarterly revenues of Rs 20,913 crore – up 17.9 per cent YoY on a comparable basis.
• Mobile services India revenues up 19.1 per cent YoY on a comparable basis, led by an increase in ARPU.
• Airtel Business revenues up by 13.4 per cent YoY backed by continued strong demand for data portfolio and emerging businesses.
• Homes business continues to have robust revenue growth, up 40.4 per cent YoY led by strong customer additions.
• Digital TV continues to improve its market position with steady revenue and customer base.

Geographical Performance

India

• Revenues up 17.9 per cent YoY on a comparable basis and 10.0 per cent YoY on a reported basis
• EBITDA margin at 49.8 per cent, up 458 bps YoY. EBIT margin at 15.9 per cent, up 313 bps YoY
• The customer base stands at 356 million
• CapEx spend for the quarter of Rs 4,654 crore

Africa

• Revenue (in constant currency) up 20.0 per cent YoY, EBITDA margin at 49.5 per cent, up 268 bps YoY, EBIT margin at 33.7 per cent, up 407 bps YoY
• The customer base stands at 125.8 million
• CapEx spend for the quarter of Rs 1,397 crore

Bharti Airtel in November 2021 raised tariffs on prepaid plans along with Reliance Jio and Vodafone Idea while reiterating that the industry's mobile ARPU needs to be at Rs 200, and eventually at Rs 300, for a financially healthy business model.