Regardless of the muted revenues because of the spike in COVID-19 cases and the lockdowns, Bharti Airtel has been able to improve its average revenue per user (ARPU) marginally. The telco has reported an ARPU gain of Rs 1 in the April-June 2021 quarter. Even though the ARPU gain is evident, the highlight for the telco during the quarter is huge dip in profits. Bharti Airtel reported a consolidated profit of Rs 284 crore in Q1 FY22 (April-June 2021). Compared to this, in the previous quarter (January-March 2021), the telco had a reported a consolidated profit of Rs 759 crore.
Bharti Airtel Performing Much Better Compared to the Last Year
Even though the quarterly profits are down, Airtel’s revenue has risen 15% to Rs 26,854 crore when compared to the last year in the same period. The telco’s ARPU stood at Rs 145 in the January-March 2021 quarter and in the following quarter it rose to Rs 146.
While this is not a big jump in the numbers, Airtel would happily take it given the state of the country during the month of May and June when the number of COVID-19 cases had reached shocking numbers. In addition to this, Bharti Airtel’s earnings before interest, tax, depreciation, and amortisation (EBITDA) increased from 48.9% to 49.1% quarter-on-quarter (QoQ) basis.
It is worth noting that Bharti Airtel had lost a ton of subscribers in May 2021. Even though the telco lost subscribers, its ARPU has been unaffected to a large extent. This is a good sign for the telco since it isn’t looking to get the biggest market share; instead, is looking to earn more from its handful of high paying customers. Airtel’s strategy looks to be working despite the horrendous quarter because of the lockdowns and rising COVID-19 cases. The ARPU for the telco should continue to jump with the removal of the Rs 49 plan from its offerings.
