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Tag: Raghunath Mandava

  • Airtel Digital TV numbers up in Q3 2018

    Airtel Digital TV numbers up in Q3 2018

    BENGALURU: Bharti Airtel Ltd (Airtel) Digital TV services segment reported 7.1 per cent year-on-year (y-o-y) increase, 3.2 per cent y-o-y increase and 4.5 per cent y-o-y increase in operating revenues, EBITDA and EBIT respectively for the quarter ended 31 December 2018 (Q3 2019, quarter, period, under review) as compared to the corresponding year ago quarter. The company’s subscriber base increased 7.6 per cent y-o-y to reach 1.5 crore subscribers as on 31 December 2019.

    In the meantime, hit by Mukesh Dhirbhai Amabani’s relentless Reliance Jio Infocomm Ltd juggernaut, Airtel’s own numbers have been falling mainly due to the fall in numbers of its mobile services in India. 

    Airtel Digital TV services revenue for the period was Rs 1,033 crore as compared to Rs 964.3 crore for the corresponding year ago period. EBITDA for Q3 2019 was Rs 382.6 crore (37 per cent of operating revenue) as compared to Rs 370.8 crore (38.5 per cent of operating margin in Q3 2018. EBIT was Rs 156.8 crore for the quarter under review as compared to Rs 150 crore for the year ago quarter. Please refer to the figure below for the segment’s financial trends

    Airtel has reported increase in its Digital TV subscribers. As mentioned above Airtel Digital TV services subscriber base at the end of Q3 2019 stood at 1.5 crore, up 7.6 per cent y-o-y from 1.3937 crore in Q3 2018, and up 1.5 per cent quarter-on-quarter (q-o-q) from 1.4779 crore in Q2 2019. Subscriber churn per month in the quarter was same as the previous quarter at 1.3 per cent. In the year ago quarter Q3 2018, subscriber churn was 1.2 per cent. Please refer to the figure below for Airtel Digital TV subscriber trends.

    Average revenue per user for the quarter under review was down by Rs 2 in Q3 2019 at Rs 231 as compared to Rs 233 in Q3 2018 and down by Re 1 as compared to the Rs 232 for the immediate trailing quarter. Please refer to the figure below for Airtel Digital TV ARPU trends.

    Bharti Airtel numbers

    Airtel’s consolidated revenues for Q3 2019 at Rs 20,519 crore grew 1.9 per cent y-o-y (reported increase of 1.0 per cent) on an underlying basis- adjusted for international termination rate reduction.

    India revenues for Q3 2019 at Rs 14,768 crore have declined by 2.3 per cent y-o-y (declined 3.5 per cent on reported) on an underlying basis. Mobile revenues have witnessed a y-o-y de-growth of 4.0 per cent on an underlying basis primarily on account of the sustained pricing pressure in India Mobile segment.

    In a statement, Airtel MD and CEO of India and South Asia Gopal Vittal, MD said, “Our simplified product portfolio and premium content partnerships have played out well during the quarter, translating into one of our highest ever 4G customers additions of 11 million plus. Our mobile data volume continues to expand, with a y-o-y growth of 190 per cent. We have deployed 24K broadband sites during the quarter and remain committed to invest in capacities ahead of the demand curve and provide a superior customer experience. Effective this quarter, we have modified our customer base measurement to represent only transacting and revenue generating customers. “

    In a statement, Airtel’s MD and CEO for Africa’s Raghunath Mandavasaid,
    “Airtel Africa’s Gross Revenue grew by 11.2 per cent on a y-o-y basis. Data traffic grew by 61 per cent, voice minutes increased by 25 per cent and Airtel Money throughput grew by 29 per cent on a y-o-y basis. Consequently, EBITDA margin has expanded by 1.7 per cent y-o-y and stood at 37.2 per cent for the quarter. We continue to further invest in strong LTE network to enhance customer experience and build a competitive advantage.”
     

  • Airtel Digital TV numbers improve as parent company numbers fall again

    Airtel Digital TV numbers improve as parent company numbers fall again

    BENGALURU: The Sunil Mittal-led Indian telecom major with operations in 16 countries, Bharti Airtel Ltd (Airtel) reported a year on year (y-o-y) drop in numbers for the quarter ended 30 September 2018 (Q2 2019, period or quarter under review) as compared to the corresponding year ago quarter (Q2 2018). At the same time, its Digital TV services segment which contributes just about 9 percent or so to the overall numbers, had a 9 percent and 13 percent y-o-y increase in operating revenues and operating profit (EBITDA) during the period under review.  The results for the quarter under review of both – Airtel overall and its Digital TV segment are subdued versions of the previous quarter. The company’s board has declared an interim dividend of Rs 2.5 per share, which is a complete pass through of dividend received from its subsidiary

    Airtel reported a y-o-y increase in its overall as well Airtel Digital TV subscriber base along with an increase in mobile data traffic. However, the competitive environment has ensured y-o-y subduction of India mobile services and home services segment financials. Hence, the improved numbers from Airtel’s Digital TV services, its B2B – Airtel business services, its tower infrastructure services and its African operations numbers are reasons for cheer for the telecom behemoth.

    Overall, Airtel’s total revenues declined 6.2 percent y-o-y in Q2 2019 to Rs 20,422 crore from Rs 21,777 crore, while EBITDA declined 20.7 percent y-o-y to Rs 6,343 crore from Rs 8,004 crore. Net income declined to almost a third (down 65.4 percent) y-o-y to Rs 119 crore from Rs 343 crore. The company had a negative operating cash flow of Rs 1,341 crore in Q2 2019 as compared to a positive Rs 520 crore in Q2 2018.

    Airtel Digital TV

    As mentioned above, for its Digital TV segment, Airtel reported 9 percent y-o-y increase in operating revenues for Q2 2019 at Rs 1,024.2 crore as compared to Rs 936.9 crore. Airtel Digital TV Services EBITDA grew 13 percent y-o-y in the period under review to Rs 396 crore from Rs 351.7 crore. The company’s subscriber base increased by 1.33 lakh (0.133 millon, 0.0133 crore) in Q2 2019 to 147.79 lakh (14.779 million, 1.4779 crore) from 146.46 lakh (14.646 million, 1.4646 crore) in the immediate trailing quarter. In Q2 2018, the company had reported 135.21 lakh (13.521 million, 1.3521 crore) Digital TV subscribers.

    ARPU in the quarter under review increased by Rs 3 to Rs 232 as compared to Rs 229 in the immediate trailing quarter (Q4 2018) but was Re 1 lower than the Rs 233 in the corresponding year ago quarter. The US dollar has been rising with respect to the Indian rupee, hence in US$ terms, ARPU declined to US$ 3.3 in Q2 2019 from US$ 3.4 in Q1 2019 and declined 8.8 percent form the US$ 3.6 in Q2 2018. Churn increased to 1.3 percent in Q2 2019 as compared to 0.7 percent in Q1 2019, but was lower than the 1.4 percent in Q2 2018.

    Company speak

    Airtel MD and CEO of India and South Asia operations Gopal Vittal said, “Led by our focus on quality customers through simplified pricing and content partnerships, ARPU decline has moderated in this quarter. We remain focused on driving quality base growth with value adding propositions for our customers. We also remain committed to investing in enhanced capacities and have  deployed 27K+ broadband sites during the quarter, enabling a 239 per cent YoY growth in mobile data volumes.”

    Airtel MD and CEO of Africa operations Raghunath Mandava said, “Airtel Africa’s Gross Revenue grew by 11 per cent on a Y-o-Y basis. Data traffic grew by 53 percent, Voice minutes increased by 36 percent and Airtel Money throughput grew by 31 percent on a Y-o-Y basis. Consequently, EBITDA margin has expanded by ~4 percent Y-o-Y and stood at 37.1 percent for the quarter. We have stepped up our capex spends during the quarter to build a formidable LTE network. This positions us well to expand our profitable growth journey by enhancing customer experience with best in class network and products. This quarter also marks the first time where we are disclosing our region and product wise performance as it provides a more holistic view of our operations across the continent.”

  • Bharti Airtel to acquire Millicom’s Rwanda operations

    Bharti Airtel to acquire Millicom’s Rwanda operations

    MUMBAI: Telecommunications services provider Bharti Airtel Limited, through its subsidiary Airtel Rwanda, has entered into a definitive  agreement with Millicom  International  Cellular S.A. to acquire 100 per cent equity interest in Tigo Rwanda.

    The acquisition will consolidate the Rwandan telecom market and position  Airtel as a strong operator  in Rwanda.  The acquisition cost is approximately six times EBITDA multiple payable  over  two years.

    Bharti  Airtel  chairman Sunil  Bharti  Mittal said, “Airtel   has  taken  proactive   steps  in  Africa  to consolidate and  realign  the market  structure in the last few remaining  countries where  its operations are lagging on account of lower market share and presence of too many operators. Airtel and Tigo have already merged their operations to create a strong viable entity in Ghana. Today, it has taken yet another  important step to acquire  Tigo Rwanda  to become a profitable and a strong challenger in a two-player market.”

    Mittal added that Airtel Africa was committed to the long-term viability of the operations in Kenya  and Tanzania to ensure that in 2018 all its 15 operations in Africa started contributing positive  margins and cash flows towards a healthy and profitable Airtel Africa.

    The agreement aims to bring together the strengths of Airtel and Millicom in Rwanda and offer benefits to customers in the form of a wider network and affordable voice and data services. The existing customers of Tigo Rwanda will join Airtel’s global network, which currently serves over 370 million customers across 17 countries.

    Airtel Africa MD and CEO Raghunath Mandava said, “The acquisition reinforces our commitment to the Rwanda market and is a significant step towards creating a stronger presence in the country. It will create synergies with  our  existing  business and  help  boost  operational efficiencies in the  market.  The Rwandan  telecom  market  will significantly benefit  from this acquisition, further  reiterating our stand that in-market  consolidations do  not just  help  achieve better  market  positions  but  benefit  customers and  the industry  as a whole.”

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    Airtel Digital TV revenues, op profits rise in Q2 FY 2018