Backed by robust growth in data business, the country’s largest mobile carrier Bharti Airtel, on Thursday recorded a 170 per cent jump in its second quarter net profit to Rs1,383 crore as compared to net profit of Rs512 crore during the corresponding period last year.
With improving voice business and better cost controls, the net profit for the quarter is highest since March 2011, with revenue growing 7.1 per cent on year to Rs22,845 crore for the second quarter ended 30th September as compared to Rs21,324 crore in the corresponding period.
Two-thirds of incremental revenue for the company came from mobile data services which at Rs2,540 crore recorded a jump of nearly 67 per cent from a year ago. Mobile data traffic grew significantly by 94.6 per cent to 78.1 billion MBs during the quarter as compared to 40.1 billion MBs in the corresponding quarter last year.
“We continue to see a strong momentum in mobile data...Airtel’s pioneering 4G roll-out in 15 cities is witnessing stronger consumer acceptance,” Airtel Managing Director and Chief Executive for India & South Asia Gopal Vittal said in the statement.
Airtel said mobile data revenues now represent 11.1 per cent of the total revenues as compared to 7.1 per cent in the corresponding quarter last year. The mobile data revenue registered a growth of 73.8 per cent year-on-year at Rs 1,805 crore, uplifted by increase in data customer base and higher usage per customer. Mobile data revenues now contribute to 14.5 per cent of mobile India revenues.
The net debt of the company increased to Rs62,215.8 crore due to an addition of Rs6,445 crore of deferred payment liabilities for the 2G spectrum.
lower forex losses, higher operational efficiency and higher mark to market losses on investment in the corresponding period for last year saw the company register the highest net profit since March 2011, the company said in a statement.
“We continue to see strong momentum in mobile data which has grown by 74 per cent in this quarter,” Vittal added.
The company said it continued to accelerate mobile data growth in India with 40.1 million data customers as on September 30, 2014, representing a growth of 43 per cent as compared to 28 million at the end of the corresponding quarter last year.
“Voice realisation per minute on a sequential basis dropped marginally as a result of competitive interventions; however, the realisation of 37.69 paise reflects an increase of 0.90 paise over the corresponding quarter last year,” Airtel said.
On the regulatory front, Vittal said the recent TRAI recommendations on making more contiguous spectrum available in the upcoming auctions have the potential of transforming the industry.
“Our robust 3G networks have supported the doubling of data volumes year-on-year, and we have been gearing up for much more growth. Airtel money transaction values have also crossed $1 billion a month,” Bharti Airtel MD and CEO (Africa) Christian de Faria said.