Bharti sees net fall for first time in 3 years
PRESS TRUST OF INDIA
New Delhi, Apr 28: Telecom operator Bharti Airtel's net profit fell -- the first time in three years -- by eight per cent in Q4, as cut-throat competition ate into margins at a time when it is raising debt to fund its USD 9 billion acquisition in Africa.
Net profit stood at Rs 2,060 crore, down eight per cent from a year ago, although the company's total revenues crossed the Rs 10,000-crore mark (Rs 10,060 crore) for the first time in the quarter.
This was so because of falling call charges in an increasingly competitive market. Revenues of telecom operators have come under pressure with the entry of 14 new players, as they are are offering rock bottom call tariff to woo customers.
However, there was some comfort for Airtel in Q4 as the company finally recorded a rise in minutes of usage per user after registering a fall for six straight quarters. Bharti shares closed down 1.26 per cent at Rs 294.50. "Bharti Airtel continues to be strongly positioned in India despite a hyper competitive market," Bharti Airtel Ltd Chairman & Managing Director Sunil Bharti Mittal said.
For the full-year 2009-10, the consolidated revenue was up 7 per cent at Rs 39,620 crore year-on-year, while its net profit was up 7 per cent at Rs 9103 crore. Bharti Airtel's Average Revenue Per User (ARPU) was at Rs 220 in the fourth quarter, 4.3 per cent down from Rs 230 in the quarter ended December 31.
The company made acquisitions in Bangladesh and Africa during the quarter, including the USD 9 billion acquisition of the African assets of Kuwait's Zain telecom.
Lastupdate on : Wed, 28 Apr 2010 21:30:00 Makkah time
Lastupdate on : Wed, 28 Apr 2010 18:30:00 GMT
Lastupdate on : Thu, 29 Apr 2010 00:00:00 IST
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