Bharti Airtel records $170m loss in Africa’s operations

Global net profit hits 10.1%

DESPITE beating estimates with a 10.1 per cent rise in its global net profit in the second quarter of the fiscal year, Bharti Airtel’s Africa’s operation has suffered $170 million loss.

Airtel, owned and headed by Indian billionaire, Sunil Mittal, yesterday, said the telecommunications net profit for the quarter ended September 30 rose to 15.23 billion Indian rupees ($234.42 million), up from 13.83 billion rupees a year earlier.

The firm, which recently cancelled a deal to sell more than 3,500 towers it owns in six African countries, said the 10.1 per cent rise in net profit was helped by rising data usage but continued losses in Africa, sustained competitive pressure on its voice business and fall in interconnect and roaming charges continued to drag.

According to Times of India, profit at India’s number one telecommunications carrier rose to Rs1, 523 crore from Rs 1,383 crore a year ago. It however fell from Rs 1,554 crore in the previous quarter. Net profit was expected to be around Rs1, 200 crore in the second quarter.

Revenue rose 4.3 per cent on year to Rs23, 836 crore, as the telecommunications operator ended the quarter with 340 million customers across India, South Asia and Africa.

Commenting, the Managing Director and Chief Executive Officer, India and South Asia, Gopal Vittal, said: “Airtel’s revenue growth in India has accelerated to 13.3 per cent in Q2 on an underlying basis, the highest in the last 12 quarters.”

He was referring to revenue adjusted for termination rates reduction and Africa tower assets divestment over the corresponding quarter last year.

The firm disclosed that Africa net loss widened to $170 million from $124 million a year ago, adding that its overall net interest costs rose to Rs 1,053 crore from Rs 687 crore a year earlier.