Airtel profits slip by 47% despite revenue growth

2 May 2013

India’s Bharti Airtel has booked a 47% fall in net earnings for the full year ended 31 March 2013, as increases in operating expenses and financing costs offset the group’s revenue growth of 12% year-on-year. Bharti reported net profits INR22.669 billion (USD424.42 million) for the twelve month period, down from INR42.594 billion a year earlier, alongside profits of INR5.063 billion for Q4 2013, compared to INR10.080 billion a year earlier. Revenues for the year totalled INR803.112 billion, whilst operating expenses grew 16% y-o-y to INR554.886 billion. Revenues for the quarter were up by 9% to INR204.484 billion, although operating costs expanded by 12% to INR139.734 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up compared to the year ago period, at INR248.704 billion for the full year (4.8%) and INR64.870 billion for the quarter (4.1%).

In terms of operations, Bharti claimed a total of 271.227 million subscribers as at 31 March 2013, including 63.718 million wireless customers across is African footprint – up 20% from March 2012 and 3% from December 2012 – and 196.126 million mobile subscribers in India and South Asia, an increase of 8% y-o-y and 3% quarter-on-quarter.

India, Bharti Airtel