Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up


BENGALURU: Indian telecom major Bharti Airtel Limited (Airtel) reported 3 percent decline in total revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The drop was partially affected by a drop in revenue due to divestments of its Africa operating units, tower assets sale and merger of Bangladesh operations. However, like in the previous quarter, Reliance Jio?s entry has resulted in a drop in the company?s India mobile revenues which contribute a lion?s share to overall revenue.

Airtel MD and CEO of India and South Asia regions Gopal Vittal said, ?The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33 percent. Airtel revenues grew by 1.8 percent Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24 percent of our total revenues.?

In consonance with Vittal statement, Airtel?s Digital TV Services segment (DTH segment) reported 17.7 percent year-over-year (y-o-y) increase in operating revenues for the quarter ended 31 December 2016 (Q3-17, current quarter). Also, Operating Profit (Earnings Before interest and Tax ? EBIT) of the DTH segment in the current quarter increased 27.1 percent year-over-year (y-o-y).

Airtel DTH reported revenues of Rs 873.5 crore in Q3-17 and Rs 742.2 crore in Q3-16. EBIT for the corresponding periods was Rs 68.4 crore (7.8 percent margin of the segment?s operating revenue) and Rs 53.8 crore (7.2 percent margin of the segment?s operating revenue), respectively.

EBIDTA in Q3-17 also increased y-o-y ? by 22.3 percent to Rs 302.6 crore (34.6 percent margin of the segment?s operating revenue) in the current quarter from Rs 247.4 crore (33.3 percent margin of the segment?s operating revenue).

Subscription numbers, ARPU

Airtel?s DTH segment added 14.82 lakh subscribers between Q3-16 and Q3-17, or a 17.3 percent y-o-y increase. It had 125.88 lakh subscribers as on 31 December 2016. Q-o-q, the segment witnessed a 1.5 percent growth (1.83 lakh adds) in subscribers from 124.05 lakh in Q2-17.

ARPU in Q3-17 increased to Rs 232 from Rs 229 in the corresponding year ago quarter, but remained flat q-o-q as compared to the immediate trailing quarter.

Airtel numbers

Bharti Airtel Limited saw a 3 percent decline in operating revenue to Rs 23335.7crore in Q3-17 as compared to Rs 24065.9 crore in Q3-16.. Profit after tax (PAT) in the current quarter declined to less than half (declined by 54.5 percent) y-o-y to Rs 504 crore (2.2 percent margin) from Rs 1,108 crore (4.6 percent margin). The company attributes decline in profits to net interest costs of Rs 1,810 crore that have risen from Rs 1,360 crore in the corresponding quarter last year largely due to increased spectrum related interest costs. Further, forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year as well as exceptional items net losses of Rs 114 crore.

Latest Reads

Amazon Prime Video India and Excel Media & Entertainment Release the Trailer of the Highly Anticipated Prime Original Series, Mirzapur

Amazon Prime Video and Excel Media & Entertainment today released the trailer of the highly anticipated Prime Original Series – Mirzapur. Set in the heartland of India

iWorld Over The Top Services
Airtel, Jio turn to AI to improve customer service

Every industry and player is adapting to Artificial Intelligence (AI) in today’s time and the Indian telecom industry isn’t far behind. In order to offer better customer service and experience, telcos like Bharti Airtel and Reliance Jio are turning to AI.

iWorld Telecom
Netflix to raise $2 bn for original content

American media services provider, Netflix, is planning to raise an additional $2 billion through bond offering.

iWorld Over The Top Services
Netflix makes up 15% of total downstream traffic on global internet

The world’s largest over-the-top (OTT) player, Netflix, makes up 15 per cent of the total downstream volume of traffic across the entire internet, according to The Global Internet Phenomena reports by Sandvine released in October 2018.

iWorld Over The Top Services
ZEE5 Originals' content cost to be 3x more than TV: Punit Goenka

Zee Entertainment Enterprises Ltd’s (ZEEL) digital venture ZEE5 has shown impressive growth in a very short span. To keep pace with the growth, the Punit Goenka-led company will highly beef up its content investment for originals as well as film titles.

iWorld Over The Top Services
Airtel launches Google Assistant based Digital Customer Care

Airtel smartphone customers will now able to get instant resolution to their frequent account related queries through the Google Assistant.

iWorld Telecom
Airtel’s fixed line broadband biz under pressure as Jio enters the fray

More than a tenth of Airtel’s India revenue is generated through its cable business, through broadband and digital TV. And now with Reliance Jio’s entry in the cable market through its acquisition of controlling stakes in DEN Networks and Hathway cables, Airtel is very certain to face pressure in...

iWorld Broadband
Facebook planning smart STB for TVs with video calling support

According to a United States news website, Cheddar, social networking company Facebook is working on smart set-top boxes for TV. And according to the sources, the set-top box will be camera equipped. It will also allow video calling along with entertainment services like Facebook’s YouTube...

iWorld Over The Top Services
Reliance Jio to maintain ARPU lead over Airtel, Vodafone Idea

Indian telecom company, Reliance Jio, is most likely to maintain its lead on average revenue per user (ARPU) over its rivals Bharti Airtel and Vodafone Idea. The telco’s strategy in the market has paid off well by selectively choosing an inordinate share of 4G smartphone users and continuing to...

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories