Bharti Airtel reported a sharp drop in net profit for its Q1 ending 30 June, with higher spectrum and interest costs and forex losses offsetting steady growth in revenue across its business units.

The operator’s net profit fell 30.8 per cent to INR14.6 billion ($216 million), which it attributed to a jump in fiance costs due primarily to higher interest on spectrum borrowing costs and finance lease obligations.

EBITDA grew 16 per cent INR95.9 billion, with its EBITDA margin improving to 37.5 per cent from 34.8 per cent a year ago.

Revenue for the quarter increased 7.9 per cent to INR255.5 billion, with India leading the growth. Mobile data revenue jumped 34 per cent year-on-year to INR46.4 billion.

Total revenue in India expanded 10.3 per cent to INR191.5 billion, as mobile revenue rose 9 per cent to INR150.5 billion. EBITDA increased 17 per cent to INR82 billion. Its capex jumped 40 per cent during the quarter to INR41.2 billion.

“The year has begun well with revenue growth of 10.3 per cent year-on-year and continued revenue market share gains,” Gopal Vittal, MD for India & South Asia, said in a statement.

Turnover in Africa increased 2 per cent to $935 million, and revenue in South Asia was up 7 per cent to INR4.1 billion.

Digital TV service revenue grew 22 per cent to INR8.4 billion, while its tower business saw revenue rise 6 per cent to INR14.6 billion.

The company’s operating expenses increased 8 per cent to INR200 billion.

India leads
Its global mobile user base rose 7.5 per cent to 342 million, with India again leading the growth as its subscribers increased 10.9 per cent to 255.7 million. South Asia saw 2.5 per cent growth to 9.2 million users, but its user base in Africa fell 1.7 per cent to 77 million.

The company expand its data customer base in India by 19 per cent to nearly 59 million (23 per cent of its total subscribers), with average data usage per customer up 28.1 per cent year-on-year. Data ARPU increased 11.7 per cent to INR202 from a year ago, although total ARPU was down 1.3 per cent to INR196.

The Africa business grew its data customers by 26 per cent to 164 million, or 21.3 per cent of its total. Data ARPU rose 3.6 per cent to $3.20.

South Asia saw data users grow 13 per cent to 2.75 million or nearly 30 per cent its total user base. Data ARPU rose 14.7 per cent INR89.

Christian de Faria, executive chairman for Africa, said: “Airtel Africa registered organic revenue growth of 3.8 per cent year-on-year despite headwinds due to implementation of stringent know-your-customer norms in a few countries. With over 21 per cent of our customer now using data, volumes have more than doubled.”