Indian telecom tower company Bharti Infratel has started feeling the pressure from the ongoing consolidation and merger activities among mobile service providers.
Bharti Infratel said the financial results for the quarter showed lower growth rates due to loss of 22,134 co-locations during the year on account of five operators ceasing to continue either on account of shutting down operations or merging with others.
Bharti Infratel did not mention about any delay in receiving payments from ailing telecom operators. There were media reports about delay in payments to telecom tower companies from some of the mobile operators due to closure of their activities or mounting losses.
Bharti Infratel has posted revenues of Rs 3,662 crore (+4 percent), EBITDA of Rs 1,606 crore (+1 percent), EBIT of Rs 1,020 Crore (+2 percent) and operating free cash flows of Rs 1,016 crore (–1 percent) for the fourth quarter ended March 31, 2018.
Bharti Infratel has 91,451 cellular towers in India with closing sharing factor of 2.25.
Bharti Infratel reported revenue of Rs 14,490 crore (+8 percent), EBITDA of Rs 6,427 crore (+8 percent), EBIT of Rs 4,034 crore (+11 percent) and operating free cash flows of Rs 4,202 crore (+13 percent) during fiscal ended March 31, 2018.
“The year gone by saw unprecedented consolidation in the Indian telecom industry with five operators ceasing to exist either on account of mergers or outright shut down of operations. Our Company saw loss of 22,134 co-locations on this account during the year,” Akhil Gupta, chairman, Bharti Infratel, said.
