Bharti Airtel Mobile Internet revenues double in Q2

Bharti Airtel Mobile Internet revenues double in Q2Consolidated total revenues up by 10% Y-o-Y

India up 6.1%; Africa up 16.1% (INR terms)

Consolidated EBITDA up by 15.1%, EBITDA margin up 1.4%

Consolidated EBIT up 28.7%

Consolidated Mobile Data revenue and traffic have doubled; growth across geographies

India EBITDA up 13.2%; margin up 2.2%

Africa net revenues (USD terms) up 5.6% Q-o-Q and 6.2% Y-o-Y.

Consolidated Operating Free Cash Flow at Rs 4,693 crore, up 117.1%

Bharti Airtel Limited (“Bharti Airtel” or “the Company”) today announced its audited consolidated IFRS results for the quarter ended September 30, 2013.

The consolidated revenues for Q2’14 at Rs 21,324 crore grew by 10% over the corresponding quarter last year. Mobile internet revenues at Rs 1,503 crore grew more than 100% Y-o-Y, accounting for 39.1% of the overall incremental revenue. Revenues were also enhanced by strong growths of 28.8% in Digital TV, 20.8% in airtel business‟ (B2B), and 54.4% in South Asia.

Mobile voice realisation in India improved by 1.31 p on a Y-o-Y basis (36.74 p in Q2‟14 vs 35.43 p in Q2’13), together with an increase in voice usage per customer by 20 minutes per month (up from 417 mins in Q2’13 to 437 mins per subs in Q2’14). Data usage per customer has gone up by 98 MBs (from 133 MBs in Q2’13 to 231 MBs per customer in Q2’14). Consequently, ARPU has moved up by Rs 15 to Rs 192 in Q2’14.

International revenues grew by 17.9% Y-o-Y and 18.3% Q-o-Q in INR terms with Africa growing by 16.1% Y-o-Y & 18.5% Q-o-Q while South Asia grew by 54.4% Y-o-Y & 16.0% Q-o-Q. Africa revenue in constant USD terms grew by 5.4% on sequential quarter basis led by a strong 28.2% increase in Data revenues. Mobile voice pricing in Africa remained stable at 3.30 cents per minute. Net Revenue in Africa (after inter-connect costs and cost of goods sold) has grown by 20.7% Y-o-Y in INR terms.

Consolidated EBITDA grew by 15.1% Y-o-Y at Rs 6,832 crore with margin expanding to 32.0% from 30.6% in the corresponding quarter last year, driven by India EBITDA margin improvement from 32.6% to 34.8%. The much improved operational performance is reflected in EBIT of Rs 2,893 crore, representing a 28.7% Y-o-Y growth and 2.0% EBIT margin improvement.

The continued depreciation of the Indian Rupee has resulted in forex restatement and derivative losses of Rs 342 crore (vs. Rs 25 crore loss for Q2’13). Consequently, the consolidated net income came in at Rs 512 crore, as against Rs 721 crore in the corresponding quarter last year. Consolidated Operating Free Cash Flows for the quarter were at Rs 4,693 crore, reflecting a robust growth of 117.1% Y-o-Y.

The company‟s consolidated net debt has reduced to $ 9,697 Mn resulting in the Net Debt to EBITDA ratio (USD terms) improving to 2.18 times as compared to 2.59 times at the end of the same quarter last year.

In a statement, Mr. Sunil Bharti Mittal, Chairman, Bharti Airtel Limited, said: “Mobile internet is now a major engine of growth for Airtel across all geographies. Our sustained investment in this segment will further enhance customer experience and seamless coverage. The revenue growth in Africa reflects the inherent potential in the world‟s most promising continent. I am also pleased to see the evolution of Airtel Money into a significant service in geographies which are relatively under-banked.”

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