Bharti Airtel announced a “stable” start to the fiscal year, with revenue growth steady across its markets and Africa seeing a “healthy” growth of 21 percent. However, the company reported a fall in profits, as a result of higher interest fees, 3G-related expenses in India, and increased tax rates. For the three months to 30 June 2011, it reported a net income of INR12.15 billion (US$272 million), down 28 percent year on year from INR16.82 billion, on revenue of INR169.75 billion, up 39 percent. In a statement, Sunil Bharti Mittal, chairman and MD of the operator, said that “In India, the Company’s efforts in the area of cost efficiencies have helped arrest the margin decline.” Airtel also recently increased its call rates in this country, sparking speculation that a fierce price war is cooling.

Airtel’s mobile customer base now stands at 221.25 million, of which 174.94 million (79 percent) were in its India and South Asia (SA) business. This marked an increase of 25 percent year-on-year.  A little over 74 percent of the company’s revenue during the period came from India and SA, with the remainder from its African operations. Sales for the India and South Asia mobile unit grew by 11 percent to INR98.4 billion, with EBIT falling by 6 percent to INR20.85 billion. Revenue for the African mobile business increased by 21 percent to US$979 million, with EBIT growing by 18 percent to US$65 million (Airtel’s results for the first quarter of 2010 show EBIT of US$14 million, because the business was acquired part-way through the quarter).