Bharti Airtel, a leading telecommunications giant, has reported impressive financial results for the third quarter of the fiscal year 2023-24, reflecting substantial profit growth and strategic advancements. The company's focus on high-value customer acquisition and improved realizations has contributed to a remarkable 53.8% year-on-year increase in profits, reaching Rs 2442.20 crore.
Financial Highlights:
- Profit Surge: Bharti Airtel witnessed a significant profit surge of 53.8%, reaching Rs 2442.20 crore in Q3 FY23-24 compared to Rs 1588.20 crore in the corresponding quarter of the previous fiscal year.
- Revenue Growth: The company's revenue from operations recorded a growth of 5.9%, totaling Rs 37,899.50 crore in Q3 FY23-24, up from Rs 35,804.40 crore in the same period last year.
- EBITDA: Bharti Airtel's EBITDA stood at Rs 20,044 crore, marking a 1.9% year-on-year increase.
Average Revenue Per User (ARPU) and Customer Base:
- ARPU Increase: The average revenue per user (ARPU) experienced a positive trajectory, reaching Rs 208 during the quarter, compared to Rs 193 in Q3 FY23, highlighting the success of the company's premiumization strategy.
- Customer Growth: Bharti Airtel achieved robust growth in its postpaid and Homes business segments, with a notable addition of 388k net customers in the DTH business – the highest in the last 12 quarters.
Business Segments:
- India Revenue: Bharti Airtel's India revenue for Q3 FY24 reported a substantial growth of 11.4% year-on-year, amounting to Rs 27,811 crore. Mobile revenues surged by 11.8% YoY, attributed to improved realizations and strong 4G/5G customer additions.
- Homes Business: The Homes business maintained its growth trajectory, achieving a revenue growth of 23.0% YoY. The strategic focus on digitization and high-value customer acquisition resulted in 359k customer additions during the quarter, reaching a total base of 7.3 million.
Network Strengthening and Expansion:
- Bharti Airtel rolled out approximately 12.3k towers in the quarter, emphasizing the importance of network coverage and seamless connectivity.
- In the last 12 months, the company deployed around 45k towers to ensure comprehensive coverage in both rural and urban areas.
Airtel Business and Digital Portfolio:
- Airtel Business: Airtel Business maintained organic revenue growth of 8.7% YoY by leveraging the converged portfolio, meeting the increasing demand for data and core connectivity solutions.
- Digital Services: Bharti Airtel's digital services, including Ads, Cpaas, Airtel IQ, IoT, Cloud, SD-WAN, and Airtel Finance, showcased a substantial user base of more than 210 million Monthly Active Users (MAUs) across key digital assets.
Strategic Acquisitions and Global Connectivity:
- In January FY24, Bharti Airtel acquired a 97.1% stake in Beetel Teletech and a 49% stake in Dixon Electro Appliances Private Limited.
- The company launched "Airtel Advantage," a unified platform offering global interconnect solutions, showcasing its commitment to seamless connectivity globally.
Africa Business:
- Bharti Airtel's Africa business reported remarkable revenue growth (in constant currency) of 21.0% YoY, with an EBITDA margin of 49.4%, up 89 basis points YoY.
- The customer base in Africa stands at 151 million, with a quarterly capex of Rs 1515 crore.
Bharti Airtel's Q3 results underscore its resilience, strategic vision, and commitment to delivering superior telecommunications services. Despite certain global economic challenges, the company continues to expand its customer base, enhance network capabilities, and explore new avenues for growth, positioning itself as a leader in the telecom industry.
("Bharti Airtel's Q3 2023-24 Results: Robust Profit Growth, Impressive Revenue from Operations, and EBITDA Performance. Key Metrics, including Average Revenue Per User (ARPU) and Customer Base, Reflecting Strong India Revenue. Focused Initiatives in Homes Business, Network Expansion, and Strengthening Airtel Business. Navigating the Digital Landscape with a Diverse Portfolio and Strategic Acquisitions. Global Connectivity Contributions and Africa Business Highlights. Demonstrating Resilience in the Telecommunications Sector with Stellar Financial Performance, Effective Customer Acquisition, and Ongoing Network Strengthening Efforts.")
