Bharti Airtel net plunges 32%
Bharti Airtel, the country's largest telecom service provider, has reported a decline of 32 per cent in consolidated net profit for the first quarter ended June 30, at Rs 1,682 crore. HT Correspondent reports. Hiccups in the airwavesbusiness Updated: Aug 12, 2010 02:32 IST
Bharti Airtel, the country's largest telecom service provider, has reported a decline of 32 per cent in consolidated net profit for the first quarter ended June 30, at Rs 1,682 crore.
This is mainly due to foreign exchange losses and additional spectrum fee, the company said on Wednesday.
Bharti Airtel is facing tough competition in the domestic market from new GSM operators including Tata Teleservices, RCOM, and Uninor.
This was the first consolidated result of the company after it acquired the Africa operations of Zain, and includes the figures from 23 days of the operations of Airtel Africa.
"The first quarter witnessed the successful completion of the acquisition of Zain's mobile operations in 15 African countries,” said Sunil Bharti Mittal, chairman and managing director, Bharti Airtel. "We also won valuable 3G and BWA licences in India, which will transform Airtel into a lifestyle enabler in the country."
Total income of the companyrose by 17.4 per cent to Rs 12,231 crore during the first quarter of current fiscal, from Rs 10,414 crore in the same period previous quarter.
Average revenue per user (ARPU) declined to Rs 215 in the first quarter, down 2 per cent from Rs 220 in the January-March quarter of the previous fiscal.
The revenue from India and South Asia mobile business grew by Rs 506 crore over the fourth quarter of 2009-10.
In order to consolidate the Africa business, Bharti Airtel has also announced the acquisition of Telecom Seychelles for $62 million (about Rs 288 crore).
"The Board of Directors has approved the acquisition deal today (Wednesday) morning," Manoj Kohli, Bharti Airtel's chief executive officer (international) and joint MD said.