Bharti Airtel commenced its journey in India more than a decade ago with a promise of delivering world-class and affordable services. Now, the company has fulfilled those aspirations and moves on to the global stage with a new brand identity.
Even as the debate continues as to which telecom operator will benefit the most from the implementation of MNP, India’s top mobile phone carrier Bharti Airtel today announced its third quarter earnings which lagged market forecast on the back of weaker margins in its African operations.
Bharti’s consolidated net profit for the December quarter came in at Rs.13.03 billion, down 41% from Rs.21.95 billion logged during the year ago period. Even on QoQ basis, the Q3FY11 consolidated profits were down by 22% from the second quarter’s Rs.16.61 billion. Analysts had estimated profits at around Rs.15-16 billion for this quarter.
Recently, Airtel had unveiled a new logo to make the next big leap in a bid to attain new brand identity and present itself as single and unified face to customers. However, this huge one-time re-branding exercise has come at a cost of Rs.3.4 billion to the telecom major.
The company also witnessed foreign exchange loss of Rs.1.5 billion on account of adverse currency movement in India and Africa, leading to further erosion in its consolidated net income.
Bharti’s revenues surged by 51% to reach Rs.15576 crore for Q3FY11 from a year ago period. However, the company has provided positive forecast with improved prospects in Africa and launch of 3G services in India.
Will Bharti be able to continue its good run in Africa and India?