Bharti Airtel logs first quarterly loss in 14 years
Telco posts ₹2,866 crore loss in Q1
02/08/2019, PRESS TRUST OF INDIA,NEW DELHI
Bharti Airtel on Thursday posted a staggering ₹2,866 crore loss for the June quarter, its first consolidated loss in 14 years, as the telco lost ground to rival Reliance Jio and took a hit from exceptional items such as charges towards accelerated depreciation of 3G network gear.
The revenue rose 4.7% to ₹20,738 crore during the first quarter ended June 2019.
“After accounting for hit of ₹14,454 million (₹1,445.4 crore) towards exceptional items (net of tax), the resultant net loss for the quarter ended June 30, 2019 came in at ₹28,660 million (₹2,866 crore), compared to profit of ₹973 million (₹97.3 crore) in the corresponding quarter last year and ₹1,072 million (₹107.2 crore) in the previous quarter,” the company said in its quarterly report.
‘Exceptional hit’
The “exceptional hit” for the quarter included amongst other heads a charge towards accelerated depreciation of 3G network equipment and operating costs on network re-farming and up-gradation programme as well as incremental provision for derivative liabilities pertaining to customary indemnities provided to a clutch of investors of Airtel Africa and expenses relating to its recent listing, the company explained.
Airtel’s revenue from India mobile services increased 4.1% year-on-year to ₹10,724 crore.
In revenue terms, Reliance Jio is now comfortably placed on top of the telco stack given that its topline stood at ₹11,679 crore in June quarter (just three years into its commercial operations) against ₹11,269.9 crore of Vodafone Idea.
Airtel, though, registered an improvement in many of the operational parameters. For instance, for the June quarter, Airtel’s India Average Revenue Per User stood at ₹129 against ₹123 in the March quarter. Also, mobile data traffic on its network grew 94% year on year.
Commenting on the earnings, Gopal Vittal, MD and CEO (India and South Asia), Bharti Airtel, said the first quarter of the year has begun with a “healthy and equitable growth across all our lines of businesses. Headline pricing remained stable, albeit at low levels,” he said.
Telco posts ₹2,866 crore loss in Q1
02/08/2019, PRESS TRUST OF INDIA,NEW DELHI
Bharti Airtel on Thursday posted a staggering ₹2,866 crore loss for the June quarter, its first consolidated loss in 14 years, as the telco lost ground to rival Reliance Jio and took a hit from exceptional items such as charges towards accelerated depreciation of 3G network gear.
The revenue rose 4.7% to ₹20,738 crore during the first quarter ended June 2019.
“After accounting for hit of ₹14,454 million (₹1,445.4 crore) towards exceptional items (net of tax), the resultant net loss for the quarter ended June 30, 2019 came in at ₹28,660 million (₹2,866 crore), compared to profit of ₹973 million (₹97.3 crore) in the corresponding quarter last year and ₹1,072 million (₹107.2 crore) in the previous quarter,” the company said in its quarterly report.
‘Exceptional hit’
The “exceptional hit” for the quarter included amongst other heads a charge towards accelerated depreciation of 3G network equipment and operating costs on network re-farming and up-gradation programme as well as incremental provision for derivative liabilities pertaining to customary indemnities provided to a clutch of investors of Airtel Africa and expenses relating to its recent listing, the company explained.
Airtel’s revenue from India mobile services increased 4.1% year-on-year to ₹10,724 crore.
In revenue terms, Reliance Jio is now comfortably placed on top of the telco stack given that its topline stood at ₹11,679 crore in June quarter (just three years into its commercial operations) against ₹11,269.9 crore of Vodafone Idea.
Airtel, though, registered an improvement in many of the operational parameters. For instance, for the June quarter, Airtel’s India Average Revenue Per User stood at ₹129 against ₹123 in the March quarter. Also, mobile data traffic on its network grew 94% year on year.
Commenting on the earnings, Gopal Vittal, MD and CEO (India and South Asia), Bharti Airtel, said the first quarter of the year has begun with a “healthy and equitable growth across all our lines of businesses. Headline pricing remained stable, albeit at low levels,” he said.
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