India’s largest telecom operator Bharti Airtel disappointed markets on Thursday as it reported near flat revenue growth in the June 09 quarter. Revenue grew by just over 1.3% sequentially to Rs 9,941 crore as against average analyst expectation of 5% rise. Though its net profit grew at a faster clip 
of 12.4% to Rs 2,516 crore from the prior quarter as opposed to the street expectation of 7.7% jump, the growth was mainly attributed to non-operating income in terms of forex gains. Bharti reported forex gains of Rs 250 crore in the June quarter compared with the Rs 236 crore loss in the previous quarter.The company’s sequential as well as annual revenue growth has substantially tapered of in recent quarters on account of falling average revenue per user per month (ARPU) and a continued decline in the minutes of usage per customer per month (MoU). After rising by 5% in the early morning session, Bharti’s stock fell by 1.5% to Rs 810 post results even as the benchmark Sensex gained 1.5%. During the quarter, ARPU fell to Rs 278 from Rs 305 in the previous quarter reflecting 8.8% drop. By similar comparison, MoU declined by 1.5% to 478 minutes. Compared to the year-ago levels, ARPU fell sharply by 20.4% whereas MoU dropped by 10.6%. On the positive side, the company added 8.4 million subscribers during the June quarter, the fastest in any of the quarters so far, taking its total subscriber base to 102.3 million. Over 60% of the net additions were from the rural and smaller towns. This indicates the successful penetration of the company’s operations in remote areas. It recorded the highest 160 billion network minutes, the highest in any quarter so far.
of 12.4% to Rs 2,516 crore from the prior quarter as opposed to the street expectation of 7.7% jump, the growth was mainly attributed to non-operating income in terms of forex gains. Bharti reported forex gains of Rs 250 crore in the June quarter compared with the Rs 236 crore loss in the previous quarter.The company’s sequential as well as annual revenue growth has substantially tapered of in recent quarters on account of falling average revenue per user per month (ARPU) and a continued decline in the minutes of usage per customer per month (MoU). After rising by 5% in the early morning session, Bharti’s stock fell by 1.5% to Rs 810 post results even as the benchmark Sensex gained 1.5%. During the quarter, ARPU fell to Rs 278 from Rs 305 in the previous quarter reflecting 8.8% drop. By similar comparison, MoU declined by 1.5% to 478 minutes. Compared to the year-ago levels, ARPU fell sharply by 20.4% whereas MoU dropped by 10.6%. On the positive side, the company added 8.4 million subscribers during the June quarter, the fastest in any of the quarters so far, taking its total subscriber base to 102.3 million. Over 60% of the net additions were from the rural and smaller towns. This indicates the successful penetration of the company’s operations in remote areas. It recorded the highest 160 billion network minutes, the highest in any quarter so far.For further details visit as : economictimes.indiatimes.com/Earnings/Bharti-disappoints-markets-but-boosts-employee-revenue-efficiency/articleshow/4810831.cms
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