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Thread: Bharti Airtel profit dips 37%
08-09-2012, 02:34 AM #1
Bharti Airtel profit dips 37%The net profit of Bharti Airtel fell for the tenth straight quarter, declining by 37 per cent to Rs.762.20 crore in the April-June 2012 quarter as stiff competition squeezed margins.
The company’s net profit stood at Rs.1,215.20 crore in the same period last fiscal.
Though Bharti Airtel has gained subscribers from smaller rivals, including Loop and S Tel (whose licences were cancelled by the Supreme Court), lower average revenue per user (ARPU) continued to trouble the company.
The ARPU in the reported quarter stood at Rs.185 against Rs.190 a month in the same period last year and Rs.189 in the January-March 2012 quarter. As on June 30, 2012, the company had 187.3 million mobile customers on its network, of which 5.1 million were 3G customers.
“Sustained hyper competition has driven this industry to become structurally defective with abnormally high rotational churn. The industry is witnessing high levels of gross customer additions, resulting in net additions of less than 10 per cent. This has a significant bearing on the telecom industry’s profitability,” Bharti Airtel, on Wednesday, said in a statement.
Total revenues were, however, up by 14 per cent to Rs.19,350 crore in the quarter from Rs.16,975 crore in the first quarter ended June 30, marked by growth of 31.5 per cent in Africa and 44.2 per cent jump in mobile data revenues from India....being a human...