Bharti Airtel suffered a sixth consecutive quarterly decline in profit during its fiscal Q2 ending 30 September, as an ongoing price war weighed on its key India market.
The operator’s net profit for fiscal Q2 2018 fell 77 per cent year-on-year to INR3.43 billion ($52.5 million). A one-time charge of INR1.46 billion for network refarming and upgrades played a part in the decline, Airtel said in a statement.
Consolidated revenue for the quarter dropped 11.7 per cent from the comparable 2016 quarter to INR218 billion, with turnover in India falling 13 per cent to INR167 billion, while in Africa revenue rose 2.6 per cent to $782 million.
India price war
Mobile service revenue in India decreased 16.8 per cent year-on-year to INR122.6 billion, with the company stating the segment “continues to experience value erosion and financial stress led by competitive pressures”.
The country’s top three mobile players have faced more intense competition since the entry of Reliance Jio in September 2016 and have been forced to reduce data prices.
ARPU declined 23 per cent year-on-year to INR154 in the recent quarter.
Gopal Vittal, Airtel’s MD and CEO for India and South Asia, said: “The financial stress in the industry continues due to double-digit revenue Read more