Bharti Airtel has announced its audited consolidated results for the first quarter ending June 30, 2017. The results indicate that in constant currency (1st Mar’17) terms, Africa underlying revenues grew by 1.5% Year-on-Year with data revenues standing at US $138 million – a growth of 11.3% Year-on-Year – led by increase in data customer base by 19.4% and traffic by 75.0%. Data revenues now contribute upto 18.7% of overall Africa revenues vis-à-vis 16.9% in the corresponding quarter last year.
In a statement, Raghunath Mandava, MD and CEO, Airtel Africa, said: “Airtel Africa organic revenue growth for the quarter was 1.5% Y-o-Y, though our efforts to optimize unprofitable revenue streams resulted in higher net revenue growth of 3.3%. New KYC norms impacted customer additions and consequently revenue growth in the quarter. The data story in Africa is unfolding well with consumption and revenue increasing by 75% & 11.3% respectively on a Y-o-Y basis. Our focus to deliver a more profitable business model for Africa has resulted in another quarter of EBITDA margin improvement, with underlying margins expanding by 8.1% Y-o-Y from 19.9% to 28.0%.
(From Right: Joy Nyaga, Director, Legal and Regulatory Affairs, Airtel Kenya; Dr Tom Musili, Founding Director, Computers for Schools Kenya (CFSK) and Mr Macharia Principal, Aquinas High School with some students during a demo session to show how the Airtel routers work when the telco donated PCs and internet routers to the school).
Airtel has also reported significant improvement in its underlying EBITDA margin by 8.1% Y-o-Y and is at 28.0%. Active Airtel Money customer base at 8.7 million, increasing the total transaction value on Airtel Money platform by 31.4% to $ 4.3 billion
However, the telco’s consolidated revenues for Q1’18 at Rs 21,958 crore, Y-o-Y drop of 11.1% (reported drop of 14.0%) on an underlying basis ( which have been adjusted for the Africa and Bangladesh divested operating units and tower assets sale). Consolidated Y-o-Y revenue growth muted by 2.6% on account of Nigeria currency devaluation. Consolidated mobile data traffic at 527 Mn MBs in the quarter has registered a strong Y-o-Y growth of 178.0% on an underlying basis. Consolidated mobile data revenues for the quarter at Rs 3,765 crore, Y-o-Y drop of 16.8% on an underlying basis.
In a statement, Gopal Vittal, the Airtel MD and CEO in charge of India & South Asia, said: “The pricing disruption in the Indian telecom market caused by the entry of a new operator continued with industry revenues declining over 15% Y-o-Y, creating further stress on sector profitability, cash flows and leverage. Consequently, our revenues declined 10% and EBITDA margin eroded by 5.3% Y-o-Y. We remain committed to providing the best value & experience to our customers and continue to invest towards it. As a result, our network witnessed data and voice traffic growth of 200% & 34% Y-o-Y respectively. We also added 5.2 Mn data customers in the last quarter – our highest ever.”