Bharti Airtel increases its ARPU by 4% and reports solid Q3 results

Bharti Airtel increases its ARPU by 4% and reports solid Q3 results

While sales for the third quarter of Bharti Airtel was in line with market projections, the company's net profit did not meet expectations. Every year, operating performance also increased.

Early on February 6, Bharti Airtel's shares increased by about 4% as the business revealed impressive third-quarter results despite difficulties with foreign currency losses.

Bharti Airtel shares were trading on the NSE at Rs 1,135.50 at 9:22 a.m.

In the October–December quarter, the company's consolidated net profit was Rs 2,442.2 crore, which represents a 54% increase over the same period the previous year. It still fell short of Moneycontrol's projected amount of Rs 3,308.50 crore, however.

Revenue increased by 6% to Rs 37,900 crore in the third quarter of 2018 from Rs 36,062 crore in the same period last year. The company's earnings matched those made by Wall Street.

According to Gopal Vittal, managing director of Bharti Airtel, "revenue from the India business sustained its momentum with grew 3% sequentially, while consolidated revenues have been affected by the devaluation of the Nigerian Naira as well as Malawi Kwacha."

The average revenue per user (ARPU) increased to Rs 208 from Rs 193 in the previous year, mostly as a result of better realisations and a continuous approach to gaining high-value clients. Analysts predict that Bharti Airtel's ARPU will be Rs 205 as well.

The telecom company has 48.3 million subscribers as of Q3, and it is steadily increasing its market share of 4G and 5G users. Additionally, Bharti Airtel gained 28.2 million 4G/5G data users to its network, representing a 13.0% annual increase.

The company's EBITDA margin increased as well, from 52.7 percent in the base period to 53.9% in the third quarter across all of its Indian companies. It credited its 'War on Waste' initiative for improving cost efficiency and operational leverage, which in turn led to higher profits.

Because of an increase in the company's revenues from the Indian mobile sector and a stronger client mix, brokerage firm Morgan Stanley feels that EBITDA is the highlight of its third quarter results. With an aim price of Rs 1,015, the business has demanded 'equal-weight' treatment for the shares.