INDIAN telecom operator Bharti Airtel reported fourth-quarter revenue below expectations on Tuesday (May 14), hurt by currency devaluation in Africa.
India’s second-ranked telecom carrier by subscribers said consolidated revenue from operations rose 4.4 per cent to 375.99 billion rupees (S$6.1 billion) for the three months to Mar 31, missing analysts’ average estimates of 388.49 billion rupees, as per LSEG data.
It incurred an exceptional charge of 24.56 billion rupees on account of the currency devaluation in its group subsidiaries.
Airtel said mobile services revenue in Africa, the region which is the second-biggest contributor to its total revenue, fell nearly 16 per cent on-year to 92.93 billion rupees, as it was impacted by the devaluation of African currencies, particularly in the Nigerian Naira.
Meanwhile, its India business, its biggest, recorded a revenue growth of nearly 13 per cent, led by strong 4G/5G customer additions.
Airtel’s 4G/5G data customers climbed by 28.6 million from last year and 7.8 million from the previous quarter, contributing 72 per cent of its overall mobile customer base.
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Average revenue per user (ARPU), a key financial metric where Airtel leads its rivals by a wide margin, rose to 209 rupees from 193 rupees a year earlier and 208 rupees in the last quarter.
Rival Jio’s market share stands at 52.05 per cent as of Mar 31, while Airtel has a 29.57 per cent share and Vodafone Idea trails at 13.82 per cent, according to the Telecom Regulatory Authority of India.
Airtel reported a 4.4 per cent rise in its profit before exceptional items and taxes to 52.34 billion rupees.
Earlier in the day, Airtel’s unit Bharti Hexacom posted a 10.4 per cent year-on-year climb in fourth-quarter profit, led by a climb in its average revenue per user.
Airtel’s shares settled 0.1 per cent lower ahead of the results. They rose 19 per cent during the quarter, outperforming a nearly 3 per cent climb in the benchmark Nifty 50 index. REUTERS
