Bharti Airtel targets $5 bn revenues from Africa in FY13

The company reported revenues of $4.13 bn for FY12

Bharti Airtel, whose profit came under severe pressure in the fourth quarter of 2011-12, is looking at a revenue target of $ 5 billion from its African operations next year.

For FY13, Airtel Africa will make a capital expenditure of $1 billion. The company reported revenues of $4.13 billion for the financial year ended March 31, 2012.

"The restructuring for Africa is over...FY13 will be a normal year. Therefore, the revenue goal of $5 billion definitely remains our target," Bharti Airtel CEO (International) and Joint Managing Director Manoj Kumar Kohli told reporters.

The company had completed the acquisition of Zain's African operations in 16 countries for an enterprise value of $10.7 billion in 2010, making it the world's fifth largest mobile company.

"All changes we wanted to bring in the network, IT, organisation design... Are successfully completed and I believe this will be a year of stability, operational consolidation and therefore we are confidant of leading a growth in these markets," Kohli added.

Bharti Airtel today reported a decline of 28.19% in consolidated net income at Rs 1,006 crore for the fourth quarter ended March 31, hit by higher cost of 3G licence fee amortisation, 3G interest costs, forex losses and tax provisions.

Kohli said the company aims at achieving 40% EBITDA (earnings before interest, taxes, depreciation, and amortisation) from its African operations.

"Cost efficiencies gained from our new business model in Africa has been completed... Now we will see efficiencies moving in steadily," he said, adding operators in Africa which follow Western business model with heavier cost than Bharti have achieved 40% Ebidta so Airtel too will be able to achieve it.

During the quarter ended March 31, Airtel Africa had a loss of Rs 340.6 crore, while revenues stood at Rs 5,387.4 crore during the period.

The telecom major has over 53.1 million customers across 17 African countries with an average revenue per user at $6.8 per month.

Bharti Airtel offers mobile services using GSM technology in India, South Asia and Africa serving over 250 million customers in these geographies.