Telecom News --

Airtel strengthens its leadership through robust revenue growth

New Delhi, 11 August, 2010

Bharti Airtel announces consolidated IFRS results for the first quarter ended June 30, 2010

Highlights for the First Quarter ended June 30, 2010

• Overall customer base stands at 183.4 million, across 18 countries
  
  
• Total revenues at ` 12,231 crore, up by 17.4% Y-o-Y (includes 23 days of Africa operations)
  
  
• India & South Asia Mobile business revenues up by ` 506 crore over Q4 FY10
  
  
• Total minutes on network for the quarter at 206.2 billion; up by 24.2 billion over Q4 FY10 (approximately 2.3 billion minutes a day)
  
  
• Consolidated underlying EBITDA margin1 of 36.9%

Bharti Airtel Limited (“Bharti Airtel” or “the Company”) today announced its audited consolidated IFRS results for the first quarter ended June 30, 2010 which includes the results of the newly acquired African operations for 23 days of the quarter, effective June 8, 2010.

The Company has adopted IFRS (International Financial Reporting Standards) for its consolidated results effective April 1, 2010; consequently, the results of Indus Towers Ltd have been proportionately consolidated. Previous period figures have been re-stated to facilitate comparison. Bharti Airtel is one of the first companies in India to publish consolidated IFRS results as permitted by Clause 41(I)(g) of the Listing Agreement vide SEBI Circular dated April 5, 2010.

The consolidated total revenues (including Airtel Africa for 23 days, w.e.f June 8, 2010) for the quarter ended June 30, 2010 of ` 12,231 crore grew by 17.4% Y-o-Y. India & South Asia total revenues stood at ` 11,273 crore, a growth of 8.2% Y-o-Y. On a sequential basis, the Mobile business in India & South Asia grew by ` 506 crore over Q4 FY10. Mobile minutes in India grew by 17.6 billion (over Q4 FY10) to 190.4 billion.

Consolidated underlying EBITDA of ` 4,512 crore grew by 5.0% Y-o-Y. Underlying EBITDA margins continued to be robust at 36.9% after absorbing a conservative provision of ` 104 crore for the proposed spectrum cost hike in India; though this has been stayed by the TDSAT.

The quarter witnessed the adverse impact of the strengthening of the US Dollar (USD) against the Indian Rupee and several African currencies. As a result, derivatives and exchange fluctuations led to a loss of ` 216 crore in Q1 FY11 (previous year: gain of ` 279 crore). Consequently, net income dropped by 32.0% Y-o-Y to ` 1,682 crore.

During the quarter, the Company acquired the African operations of Zain for an enterprise value of USD 10.7 billion. The 3G licences in 13 circles and BWA licences in 4 circles in India were acquired at a total cost of ` 15,610 crore (USD 3.3 billion). Capex spend during the quarter was restricted to ` 1,836 crore (USD 394 million) due to delays in security clearances for equipment imports. The Consolidated Free Cash Flow in Q1 FY11 was an all-time high of ` 3,663 crore (USD 786 million). The Net Debt - Equity ratio stood at 1.38, and the Net Debt – EBITDA ratio at 2.87.

In a statement, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said “The first quarter witnessed the successful completion of the acquisition of Zain’s mobile operations in 15 African countries. We also won valuable 3G and BWA licenses in India, which will transform Airtel into a lifestyle enabler. Our business in India and South Asia got off to a solid start with robust revenue growth and healthy margins. This reaffirms our conviction that leaders emerge stronger in a hyper competitive market.”

-end-

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