Bharti Airtel reports Q2 loss of Rs. 23,045 crore

Bharti Airtel has reported Q2 loss of Rs. 23,045 crore whereas consolidated revenues stood at Rs. 21,131 crore up 4.9% Y-o-Y.

The liabilities/provisions as at September 30, 2019 aggregate Rs. 34,260 crore which comprises of principal of Rs. 8,747 crore, interest of Rs. 15,446 crore, penalty of Rs. 3,760 crore and interest on penalty of Rs. 6,307 crore.

Consolidated Revenues at Rs. 21,131 crore up 4.9% Y-o-Y (6.9% on an underlying basis) whereas India revenues at Rs. 15,361 crore up 3% Y-o-Y whereas consolidated EBITDA was at Rs. 8,936 crore.

Mobile revenues have witnessed a Y-o-Y growth of 7.1%. Mobile data traffic has nearly doubled to 4,497 PBs in the quarter as compared to 2,478 PBs in the corresponding quarter last year. Mobile 4G data customers increased by 56.9% to 103.1 Mn from 65.7 Mn in the corresponding quarter last year.

Digital TV revenue witnessed a growth of 17.1% Y-o-Y on an underlying basis whereas Airtel Business has sustained its performance on a Y-o-Y basis.

Gopal Vittal, MD and CEO, India & South Asia said, “Despite being a seasonally weak quarter, we witnessed positive revenue growth in Q2 on the back of various initiatives aimed at providing superior differential services through our Thanks platform. We continue to witness strong data traffic growth of around 81% Y-o-Y and added around 8 mn 4G customers on our network during the quarter. We remain committed to strengthening our network and providing a superior experience to our customers.”

The company is hopeful of relief and in the absence of the same, has provided for an additional amount aggregating Rs. 28,450 crore as a charge for the quarter (comprising of Principal of Rs. 6,164 crore, interest of Rs. 12,219 crore, penalty of Rs. 3,760 crore, and interest on penalty of Rs. 6,307 crore) with respect to the license fee as estimated based on the Court Judgement and spectrum usage charges (SUC) as estimated based on the definition of AGR. These provisions have been made without prejudice to the company’s right to contest DoT’s demands on facts as well as on rights available in law.

On the AGR verdict of the Supreme Court, the company is continuing to engage with the government and are evaluating various options and are hopeful that the government will take a considerate view in this matter given the fragile state of the industry.

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