Net profit at Bharti Airtel Higher 4G & 5G users drive up ARPU to Rs 211, up from Rs 209 in Q4 FY24
Bharti Airtel’s net profit (attributable to owners) for the April-June quarter (Q1) of FY25 rose 158 per cent year-on-year (Y-o-Y) to Rs 4,159 crore, up from Rs 1,612 crore in the year-ago period. Sequentially, the profit more than doubled from Rs 2,071 crore in the preceding quarter.
The company attributed the rise in net profit to a greater focus on cost efficiencies, a rising number of 4G and 5G users, and continued growth in business categories such as homes.
While strong 4G and 5G customer additions continued, the consolidated revenue from operations came in at Rs 38,506.4 crore in Q1, inching up by 2.84 per cent Y-o-Y. Other income in the quarter under review stood at Rs 363.5 crore. The company said revenues of its group subsidiaries continued being impacted by the devaluation of African currencies, particularly the Nigerian Naira.
The company’s average revenue per user (ARPU), a key performance metric for telecom firms, rose 5.5 per cent Y-o-Y to Rs 211, up from Rs 200 in Q1FY24. However, it rose only marginally from Rs 209 in the preceding quarter. Airtel’s ARPU is the highest in the industry, beating Jio’s and Vodafone Idea’s Rs 146 (as last reported by both companies).
Bharti Airtel’s revenue from the India business for Q1 was Rs 29,046 crore, up 10.1 per cent Y-o-Y. Mobile services in India, which account for a significant portion of the revenue, at Rs 22,527 crore, also grew at 10.5 per cent, up from Rs 20,392 crore in Q1FY24.
Annual growth in this segment has been accelerating over the past few years, with 12.9 per cent, 11.8 per cent, and 10.9 per cent growth seen in the preceding two quarters. net profit
The telco’s consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the quarter were Rs 19,944 crore, while the EBITDA margin was 51.8 per cent. The India business posted an EBITDA of Rs 15,599 crore, with a margin of 53.7 per cent.
“Our stringent focus on driving cost efficiencies is reflected in strong operating leverage. Africa continues to deliver strong underlying constant currency revenue growth. India operations added 6.7 million smartphone customers and reported an improved ARPU of Rs 211,” said Managing Director Gopal Vittal.
Airtel’s home business added 348,000 new users in Q1, leading to a total base of 8 million users. A major bet for the telco, the homes business saw a 17.6 per cent growth. “During the quarter, we accelerated pace on Fixed Wireless Access services expansion across key towns. Our WiFi services (Fiber To The Home and FWA) are now available in over 1,300 cities,” Vittal said. net profit
The net profit increased 158% to Rs 4,159 crore in Bharti Airtel’s Q1FY25 results
Stronger subscriber growth
The net addition in the premier postpaid segment stood at 0.8 million subscribers in the latest quarter, same as the preceding quarter. Growth had been higher earlier, at 0.9 million and 1 million subscribers in Q3 and Q2 respectively of FY24. The total number of postpaid users stood at 24 million.
On a consolidated basis, 4G/5G data customers were up by 29.7 million, now making up 73 per cent of the overall mobile customer base. The growth was slightly lower than the preceding quarter’s 28.6 million additions.
Mobile data consumption increased by 26 per cent annually, with consumption per customer rising to 23.7 GB per month in India. Airtel rolled out 6,300 new towers and 15,500 mobile broadband stations over the quarter to further strengthen network coverage. net profit
Airtel’s market share in the smartphone segment saw sustained improvement with the addition of 29.7 million, an increase of 12.9 per cent Y-o-Y, the company said.
Source : Business Standard
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