Bharti Airtel ARPU Makes a Dip Again to Rs 128 After Rising Consecutively in Past Quarters

Bharti Airtel has released its new quarterly report highlighting the gross revenue of the companies and its combined holdings in the wake of the new AGR verdict

Highlights
  • Bharti Airtel has reduced its churn rate to 2.1% this quarter
  • Under Bharti Infrtael, the telco has set up 414 new towers
  • The telco's ARPU has dipped by 1% QoQ

The Sunil Bharti Mittal led telecom operator, Bharti Airtel, in its BSE filings today has revealed some of the critical parameters and the financial metrics of the company for the quarter ending in September 2019. Some of the agendas in the board meeting of Bharti Airtel which were to be taken up in the recent, have been deferred. Bharti in its filing has said, “The Board of Directors, in its meeting held today, has accepted the management’s recommendation and deferred the agenda item relating to the approval of the said financial results till Thursday, November 14, 2019.” In its quarterly earnings report, we get to see some crucial results which point out to us the financial health of the company. One of the most notable parameters in this quarterly report is of the Average Revenue Per User (ARPU) which has taken a hit again for Bharti Airtel. After witnessing an increase in ARPU helped by the minimum recharge plans, Bharti Airtel’s ARPU has again taken a slump.

bharti-airtel-arpu-dips-rs128

Bharti Airtel ARPU Starts to Decline Again

The first thing to note in the Bharti Airtel quarterly report is the subscriber base of the company which has gone up quarter-on-quarter by 0.9%, but has a total negative YoY fall of 15% over the previous numbers. This is a piece of good news for the Sunil Bharti Mittal led telecom operator, as one of the major issues which the company was facing was of the churn of subscribers porting to other networks in the latter half of the last FY. Speaking of which, the monthly churn of Bharti Airtel has also come down to 2.1% from the previous churn rate of 2.6%. Coming to the most important parameter of all, ARPU, this is where Bharti Airtel has taken a hit, as the telecom operator has now registered an ARPU of Rs 129 meaning that although the telecom operator has added a few subscribers to its base, they are mostly low paying subscribers. In the previous quarter, Bharti Airtel had reported an ARPU of Rs 129 which denotes a fall of 1%.

Airtel Digital TV ARPU Also Slumps

Bharti Airtel has reported the figures for home services and Digital TV services as well. In the home services segment, Bharti Airtel has noted that its ARPU stood at Rs 777 instead of the previous ARPU of Rs 825, which shows a decline of 5.8%. In contrast, for Airtel Digital TV services, the ARPU of the company is up from the previous Rs 157 at the end of the June quarter, to Rs 162 in the quarter ending in September 2019.

Bharti Infratel Sets Up 414 New Towers in Previous Quarter

Highlighting the figures about network and coverage, Bharti Airtel has noted that it has achieved the 95.3% population coverage, which remains the same from the previous quarter ending in June 2019. Under Bharti Infratel, which is the tower company of Bharti Airtel, the company has reached the total figure of 41,050 towers. To recall, in the previous quarter, Bharti Airtel had a total of 40,636 towers under its name, meaning that in this quarter, the telecom operator has set up 414 new towers.

Lastly, coming to the section of gross revenue, Bharti Airtel has reported a year on year increase in gross revenue of 7% in the mobile services segment. In the home services segment, it has witnessed a decline of 2% in the gross revenue, whereas, for the Digital Services, the YoY decline is more severe at 23%.

What Does the ARPU Dip Mean?

In all of the financial report of Bharti Airtel, the most notable thing is the decline of the ARPU. Since the last calendar year, Bharti Airtel is being helped with the launch of the minimum recharge plans which have helped the telco in raising its ARPU, but the new quarterly report points out that the party is over for the telecom operator and the ARPU is starting to come down, even as the telco adds subscribers.

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Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

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karthik
karthik

Will need to see the ARPU and the customer base of Airtel and JIO in October December period. The statistics in this period will provide the actual impact of IUC change by JIO , which will in turn be the decision point for all operators to choose a particular path.

City
Mysore
Operator
JIO , Airtel
Nikhil
Nikhil

Off Topic : Those who have asked me about MIUI 11 on Redmi Note 7/7S, it’s been receiving on certain devices. Same goes with Redmi Note 6 Pro. Redmi Note 5 Pro update suspended few days back but again started rolling out.

Aniruddha Dhar|Santragachi|West Bengal
Aniruddha Dhar|Santragachi|West Bengal

What about redmi note 5 or redmi 5 plus or vince? I am using it but yet to receive miui 11.

Nikhil
Nikhil

It already got it along with Redmi 5 10 days back. Redmi Note 4/Redmi 4 got it today.

Aniruddha Dhar|Santragachi|West Bengal
Aniruddha Dhar|Santragachi|West Bengal

Hey I didn’t receive it till now. Quite strange!

Parimal
Parimal

all i want is night mode in redmi note 4 but they didn’t provided

Bsnlfan
Bsnlfan

No use for mido(rn4) because only ui updated no security patch update and dual volte is missing.

Nikhil
Nikhil

Dual VoLTE was never going to come for this device. Dark mode is available through EU ports and custom roms.

Kamal Sharma
Kamal Sharma

Thanks Nikhil for the update. Any update on when all the devices will be recieving the same???

Nikhil
Nikhil

Redmi Note 8 Pro started getting it yesterday.

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