Bharti Airtel announced its consolidated results for the first quarter ended June 30, 2023, showcasing impressive financial performance and industry-leading operational indicators. Airtel posted quarterly revenues of Rs 37,440 crore, representing a 14.1 percent year-on-year (YoY) growth, driven by consistent and robust performance across its diverse portfolio of services, according to the company. The India business alone recorded quarterly revenues of Rs 26,375 crore, demonstrating a 13.1 percent YoY increase.
Also Read: Bharti Airtel Successfully Tests 5G on mmWave and 3300 MHz in West Bengal
Mobile Services
Notably, Bharti Airtel's mobile services in India saw a notable 12.4 percent YoY growth in revenues, primarily fueled by the continued addition of strong 4G customers and a rise in average revenue per user (ARPU).
Airtel Business Division
In addition to the mobile segment, the Airtel Business division also experienced significant growth, with revenues surging by 15.8 percent YoY. This success was attributed to the high demand for data and connectivity-related solutions, further supported by emerging competencies.
Digital TV Strengthens Market Position
The Homes business, too, has been a key driver of growth for Bharti Airtel, with revenues surging by 25.4 percent YoY, primarily driven by a substantial increase in the customer base. Moreover, Airtel said its Digital TV segment strengthened its market position during the period under review.
Also Read: Airtel Africa Reports Strong Revenue Growth in Q1 Despite Forex Challenges
Financial Highlights
Overall, the company's financial performance demonstrated a robust bottom line, with consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reaching Rs 19,746 crore, marking an improvement of 212 basis points (bps) YoY. The EBITDA margin stood at 52.7 percent.
Breaking down the results further, the India business recorded an EBITDA of Rs 14,154 crore, with a corresponding EBITDA margin of 53.7 percent, reflecting a 271 bps YoY increase.
Bharti Airtel's net income (before exceptional items) for the quarter reached Rs 2,902 crore, displaying a growth of 91.3 percent YoY. However, the net income (after exceptional items) stood at Rs 1,612 crore, experiencing a more modest increase of 0.3 percent YoY.
Also Read: Bharti Airtel Shows Positive Net Subscriber Growth Amid Tariff Hikes
Operational Indicators: 4G Customer Additions and ARPU
Bharti Airtel reported a 24.5 million YoY increase in 4G data customers, totalling 68 percent of its overall mobile customer base. Furthermore, the company reported its highest-ever postpaid net additions of 0.8 million in Q1 FY24.
The company's mobile ARPU witnessed a notable increase to Rs 200 in Q1 FY24, compared to Rs 183 in the corresponding quarter of the previous year. Additionally, mobile data consumption surged by 21.6 percent YoY, with an average consumption of 21.1GB per customer each month.
The Homes business achieved 413,000 net customer additions during Q1 FY24. The Digital TV segment also reported a customer base of 15.9 million during the same period.
Gopal Vittal, MD, Bharti Airtel stated, "Our focus on winning quality customers and driving premiumization has helped us add 5.6 Mn new 4G customers and the highest ever postpaid customers in any one quarter. We exit the quarter with an industry leading ARPU of Rs 200. Homes, Enterprise and our digital businesses continue to exhibit strong growth momentum, reflecting the resilience and strength of our overall portfolio."
Also Read: Airtel Prepays Rs 8,024 Crores to Clear 2015 Spectrum Liabilities
Prepayment of Spectrum Liabilities
As reported by TelecomTalk, in a strategic move, Bharti Airtel made a part prepayment of Rs 8,024 crore towards liabilities related to spectrum acquired during the 2015 auction, positioning the company for further growth opportunities.
