Bharti Airtel, a leading telecommunications provider with strong presence in India and Africa, has announced robust financial results for the third quarter ending December 31, 2023, showcasing a significant upswing in revenues.
Airtel Africa Flourishes:
Airtel Africa has experienced a 21 percent increase in revenue. Airtel Africa’s EBITDA margin saw an 89 basis points (bps) rise, hitting 49.4 percent, while the EBIT margin reached 33.4 percent. Airtel Africa’s customer base expanded to 151 million during the October-December quarter of 2023. Airtel Africa’s capital expenditure touched Rs 1,515 crore.
Airtel India’s Remarkable Growth:
In the domestic market, Airtel reported revenues of Rs 27,811 crore, marking an 11.4 percent growth. The EBITDA margin for Airtel India rose by 119 bps, reaching 53.9 percent, while the EBIT margin increased by 82 bps to 23.4 percent. The customer base for Airtel India stood at approximately 397 million at the end of December 2023. The capital expenditure of Airtel India has reached Rs 7,756 crore during October-December.
Mobile Revenues and Network Strengthening:
Airtel India’s mobile revenues experienced a growth of 11.8 percent, attributed to enhanced realisation and substantial 4G/5G customer additions. The Average Revenue Per User (ARPU) for the quarter reached Rs 208, compared to Rs 193 in Q3’23, driven by a consistent strategy of acquiring high-value customers and improving realisations. Data usage per data customer reached 22 GBs/month.
In the postpaid business, Airtel India added 0.9 million customers, excluding IoT, bringing the postpaid customer base to 48.3 million, including IoT. Over the last year, the company added 28.2 million 4G/5G data customers, reflecting a 13 percent increase.
To fortify network coverage, Airtel India deployed approximately 12.3k towers in the quarter and 45k towers in the last 12 months, ensuring connectivity in both rural and urban areas.
Fixed Broadband and Business Expansion:
Airtel India’s fixed broadband business witnessed robust growth, adding 359k customers in the quarter, reaching a total base of 7.3 million. The Airtel India Homes business is currently operational in 1267 cities.
Leadership Perspective:
Gopal Vittal, Managing Director of Bharti Airtel, expressed satisfaction with the sustained momentum of revenue from the India business, noting a sequential growth of 3.0 percent. He highlighted the impact of the devaluation of the Nigerian Naira and Malawian Kwacha on consolidated revenue.
Gopal Vittal emphasized the success of the premiumization strategy, which added 7.4 million 4G/5G customers and resulted in an industry-leading ARPU of Rs 208. However, he acknowledged the need for tariff repair to ensure the industry’s health, emphasizing the importance of addressing the low return on capital employed, currently at 9.4 percent.
