Bharti Airtel – Q1FY09 Results Insight

Mobile services still constitute majority of the revenues with Enterprise Services gaining traction. Airtel reported a profit of Rs 20bn for Q1 FY09 up 25.7% compared to Q1 of last FY. Here is a quick summary of the results,

  • Mobile Customers increased to 69.38 mn at the end of June-08 commanding a 24.2% all India wireless subscribers market share.
  • Mobile ARPU decreased to Rs 350 from Rs 357 a quarter ago. However we have a positive surprise, Minutes of usage went up from 507 to 534.
  • EBITDA margin for the segment declined ~480 bps sequentially to 30.7%, jump in network operating costs (up 11% Q-o-Q) seem to be the key reasons for the decline in margins.
  • Airtel’s wireline service now spans 94 Indian cities serving 2.393 mn customers with ARPU / Month of Rs 1,138. DSL broadband customer base stood at 0.853m at the end of June-08. It was also voted as the Best ISP in the PC World Broadband Survey.
  • Carrier Enterprise Services recorded a growth of of 70% over the corresponding quarter last year.

Unfortunately missed the Con Call, waiting for the transcripts to see if any aggressive investment plans for WiMax or Broadband in the forthcoming quarters.

Leave a Reply

Your email address will not be published. Required fields are marked *