 "Bharti Airtel Q3 net dips 54% to Rs 503.7 cr on Jio woes")
Telecom major Bharti Airtel on Monday reported over 54 per cent fall in consolidated net profit to Rs 503.7 for the October-December quarter due to "turbulence" from "predatory pricing" of newcomer Reliance Jio.
The company had posted a net profit of Rs 1,108.1 crore in the same period a year ago.
The consolidated income of Bharti Airtel declined by 3 per cent during the reported period to Rs 23,363.9 crore from Rs 24,103.4 crore in corresponding period of 2015-16.
Bharti Airtel MD and CEO for India & South Asia Gopal Vittal in a statement said, "The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network.
"This has led to an unprecedented year-on-year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector."
Jio is offering free 4G services since its launch in September. The free service of Jio will continue till March 31, 2017, according to the last announcement made by Reliance Industries Chairman and Managing Director Mukesh D Ambani.
Consolidated mobile data revenues of Airtel for the quarter was flat at Rs 4,049 crore compared to same period in previous financial year.
Vittal added that at the same time revenue market share of Airtel has crossed a lifetime high of 33 per cent.
Airtel said that its India revenues were up by 1.8 per cent and that of Africa by 6 per cent on Y-o-Y basis.
"India revenues for third quarter (stood) at Rs 18,013 crore grew by 1.8 per cent Y-o-Y. Slowdown in mobile revenue growth (was) primarily due to free voice and data offering by a new operator," the statement said.
In Africa, Airtel saw impact of devaluation of Nigerian currency on Y-o-Y basis.
Consolidated net debt of Airtel increased by 24 per cent to Rs 97,395.2 crore at the end of December 31, 2016, from Rs 78,451.5 crore in the corresponding period a year ago.
"Net interest costs of Rs 1,810 crore have risen from Rs 1,360 crore in the corresponding quarter last year - largely due to increased spectrum related interest costs. Forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year," the statement said.
Shares of Bharti Airtel closed at Rs 316.35, down by 0.95 per cent compared to previous financial year close, on BSE on Tuesday.
The company had posted a net profit of Rs 1,108.1 crore in the same period a year ago.
The consolidated income of Bharti Airtel declined by 3 per cent during the reported period to Rs 23,363.9 crore from Rs 24,103.4 crore in corresponding period of 2015-16.
Also Read
"This has led to an unprecedented year-on-year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector."
Jio is offering free 4G services since its launch in September. The free service of Jio will continue till March 31, 2017, according to the last announcement made by Reliance Industries Chairman and Managing Director Mukesh D Ambani.
Consolidated mobile data revenues of Airtel for the quarter was flat at Rs 4,049 crore compared to same period in previous financial year.
Vittal added that at the same time revenue market share of Airtel has crossed a lifetime high of 33 per cent.
Airtel said that its India revenues were up by 1.8 per cent and that of Africa by 6 per cent on Y-o-Y basis.
"India revenues for third quarter (stood) at Rs 18,013 crore grew by 1.8 per cent Y-o-Y. Slowdown in mobile revenue growth (was) primarily due to free voice and data offering by a new operator," the statement said.
In Africa, Airtel saw impact of devaluation of Nigerian currency on Y-o-Y basis.
Consolidated net debt of Airtel increased by 24 per cent to Rs 97,395.2 crore at the end of December 31, 2016, from Rs 78,451.5 crore in the corresponding period a year ago.
"Net interest costs of Rs 1,810 crore have risen from Rs 1,360 crore in the corresponding quarter last year - largely due to increased spectrum related interest costs. Forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year," the statement said.
Shares of Bharti Airtel closed at Rs 316.35, down by 0.95 per cent compared to previous financial year close, on BSE on Tuesday.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%