Airtel Q3 net declines 22 per cent
The country’s largest telecom company Bharti Airtel, on Wednesday, reported 22 per cent decline in consolidated net profit to Rs 1,011 crore for the October- December quarter due to higher interest outgo and costs related to the roll-out of 3G network.
This is the eighth straight quarter for which Bharti Airtel has reported a decline in net profit. Its net profit was Rs 1,303 crore in Q3 last year.
Bharti Airtel said the roll-out of its 3G network resulted in a higher amortisation cost of Rs 164 crore for the quarter, while its net interest cost rose to Rs 116 crore during the reporting period. The company’s total revenues rose to Rs 18,477 crore in Q3 from Rs 15,772 crore registering a YoY growth of 17 per cent.
Bharti said the roll-out of its 3G network resulted in a higher amortisation cost of Rs 164 crore for the quarter, while its net interest cost rose to Rs 116 crore during the reporting period. Bharti’s monthly average revenue per user (ARPU), a key metric for telecom carriers, for Indian operations rose to Rs 187 during the reporting quarter from Rs 183 in the September quarter.
The blended monthly usage per customer, during the quarter was at 419 minutes. When asked whether Bharti will bid for the 2G spectrum after Supreme Court cancelled 122 telecom licences, Bharti Airtel India and South Asia Head Sanjay Kapoor said, “Well everything is very hypothetical right now, we neither know what the rules of the game are nor we know what the process so once we reach closer we will be in a position to answer.” The company hopes to launch 4G services before the end of Q4.
