Enterprise Television- Airtel Africa Operations Post $58 Million Profit in Q1 FY18
Bharti Airtel’s Africa operations state its profits of $ 57,517,278.00 (Rs 393.9 crore) for the June-end quarter, pushed by increased data consumption and currency stabalisation in most countries.
The company’s Africa operations which is being prepared for a public listing through the holding company Bharti Airtel International (Netherlands) BV in early 2019 had shown a loss of Rs 275.8 crore in the same period last year.
The Sunil Mittal owned company’s overall revenues for the continent was Rs 4,531 crore, up more than 10 per cent Year- on- Year (Y-o-Y), due to increased data penetration and rise in Airtel money transaction value.
MD and CEO, Africa, Raghunath Mandava said “With 4G services live across 9 countries and continuing up-gradation of capacities across the OPCOs, we remain best placed to capture the ever growing data market. We continue our focus on profitable growth through superior customer offerings and expanding our Airtel money base – which now transacts more than $ 24billion on an annualised basis.”
Airtel Africa, which comprises operations in 14 countries of the continent, reported an increase of 41% on-year in EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 1922.1 crore. On-year EBITDA margin also expanded by 7.8% to 36.4%.
In the Africa segment, mobile data traffic grew by 75% to 78 billion MBs in the quarter as compared to 44 billion MBs in the same quarter last year. Data customers increased by 45.2% to 26.4 million from 18.2 million in the corresponding quarter last year. However, average revenue per user dropped by 3.4% on-year and 1.3% on-quarter to $2.9 in the quarter ended June, 2018.
The company said that its Airtel Money customer base increased to 11.8 million, boosting the total transaction value on Airtel Money platform by 43% to $6.1 billion. It is overall customer base in the continent increased to 91.2 million, up 18.6% on-year.
However, the parent company, Bharti Airtel, posts heavy India losses in Q1 FY2018. Bharti Airtel eked out a modest net profit on a consolidated basis in the first quarter, helped by a one-time exceptional gain, but losses worsened in India as pricing pressure continued to mount and it took a hit from lower international call termination rates.
The nation’s largest telecom company reported a consolidated net profit of Rs 97.3 crore, just about a quarter of what it posted a year earlier. This, after it recorded a Rs 515.6 crore exceptional gain from creation of a deferred tax asset in Nigeria, Bharti Airtel said in a statement recently.
Bharti Airtel had almost 456.64 million customers across India, South Asia and 14 countries in Africa at the end of June. In India, the user base rose 13.3% from the March quarter to 344 million.
The percentage of users leaving the Airtel network fell to 2% from 2.8% in the January-March period as the company said it stepped up efforts to improve customer experience.
The margin of Earnings before Interest, Tax, and Depreciation & Amortisation (EBITDA) contracted to 34% from 35.8% in the previous quarter.
While Airtel’s India operations remained under pressure, its Africa operation continued to improve. Its Africa net income (before exceptional items) climbed to Rs 394 crore in the June quarter from a Rs 275.1 crore loss a year earlier, buoyed by increased data consumption, voice minutes growth and currency stabalisation in most countries.
Airtel Africa’s net revenue rose 10% to Rs 4,531 crore.