Airtel Stuns The Market With 466% Increase In Profits! Airtel Earned Rs 183 Per Customer Between April-June, 2022

For the first quarter ended June 30, 2022, Telecom operator Bharti Airtel on August 8 reported a 466 percent year-on-year (YoY) jump in net profit at Rs 1,607 crore. 

The same figure for the last quarter was Rs 284 crore. For the quarter under review, the net profit has been predicted at Rs 2,472 crore. 

Increased Net Profit, Revenue, ARPU

As compared to the last fiscal’s 26,854 crore, the total revenue this fiscal stood at Rs 32,804.6 crore for the period under review. This is an increase of 22.2 percent. This increase can be attributed to the company’s focus when it comes to acquiring and retaining quality customers and a relentless obsession with customer experience.

A key metric amongst telcos, ARPU, which stands for average revenue per user has improved from Rs 146 from previous fiscal to Rs 183 for the current fiscal.

With average data usage per mobile data customer at 19.5 GBs/month and voice usage per customer at 1,104 minutes/month, Airtel’s ARPU continues to be the best in the industry.

In the first quarter of this fiscal, the consolidated EBITDA saw an increase of 25.9 percent YoY to Rs 16,604 crore. This led to an improvement in EBITDA margin from 49.1 percent in the corresponding period in the previous fiscal to 50.6 percent in the first quarter of this fiscal exhibiting the company’s continued focus on operational efficiencies.

India’s mobile services EBITDA has improved to  51.2 percent in the first quarter of this fiscal as compared to the 49.2 percent in the corresponding period in the previous fiscal. The consolidated EBIT increased by 43.7 percent YoY to Rs 7,813 crore and for the quarter the consolidated net income before exceptional items stands at Rs 1,517 crore.

The consolidated net income after exceptional items for the quarter stands at Rs 1,607 crore. The net debt-EBITDA ratio (annualised) and including the impact of leases as of June 30, 2022, is at 2.52 times, compared to 3.03 times as of June 30, 2021.

Speaking of the consolidated mobile data traffic, it stood at 12,288 PBs in the quarter with a healthy YoY growth of 17.7 percent.

With an increase of 23.8 percent YoY, the revenue for the first quarter stood at Rs 23,319 crore. On account of an increase in ARPU and strong 4G customer additions during the year, the mobile revenues grew by 27.4 percent YoY. 

With an increase of 11.3 percent YoY, the company added 20.8 million 4G customers to its network over last year and continues to garner a strong share of the 4G customers in the market. 

Customer Base Of Digital Assets

With a robust customer base of over 185 million across the digital assets which include Thanks, Xstream, and Wynk, Airtel Xstream has achieved the 2 million paid subscriber milestone and is now India’s fastest-growing OTT aggregator platform.

When it comes to the Mitra App, then there are as many as 1.2 million retailers transacting and making payments every day. With a strong total customer base of 139 million and a highly engaged Monthly Transacting Users (MTU) base of over 44 million, Airtel Payments Bank continues to expand rapidly during the quarter.

MD & CEO, Gopal Vittal said that the company continues to deliver strong and sustained growth at 4.5 percent sequentially. EBITDA margins are now at 50.6 percent. He said that “Our enterprise and homes business has strong momentum and delivered strong double-digit growth, improving the diversity of the overall portfolio. Airtel’s strategy of winning with quality customers continues to yield good results with an industry-beating ARPU at Rs 183”.