The telecom company Bharti Airtel, which is managed by Sunil Mittal, released its September quarter results on Monday. Consolidated net profit increased 89% year over year to 2,145 crores. Their profit climbed 33.5% sequentially.
Bharti Airtel’s Net Profit Increase
Bharti Airtel’s operational revenue climbed 21.9% YoY to 34,527 crores. This is an increase of 5.2% sequentially. Due to feature phone users switching to smartphones, data monetization, and the telco’s emphasis on “quality” clients, Airtel also announced a 24% YoY gain in average revenue per user (ARPU) to 190 per month.
The telco’s ARPU climbed 3.8% sequentially, in line with expert predictions. Bharti Airtel CEO and MD, Gopal Vittal said that the durability and strength of our portfolio influence the consistency of our execution. Their B2B and Homes businesses kept up their excellent growth momentum, and their mobile ARPU increased to 190 thanks to premiumization and a keen understanding of their customers.
Data consumption increased by 20.9% while voice traffic increased by 5.1% YoY overall at Airtel. In the 16 countries where Airtel conducts business, its overall user base climbed 4.8% to 501 million.
In the third quarter of September, the telco’s customer count in India climbed from 355 million to 364 million. 17.8 million more people joined its 4G subscriber base year over year, making up 64% of all members.
About the Tariff Hikes
Additionally, Vittal discussed the necessity for tariff hikes, a topic also raised by his rival and former CEO of Vodafone Idea, Ravinder Takkar. He said that they continue to be concerned about the business’s low return on capital employed (ROCE), which is caused by its globally competitive pricing. They think there is a need for tariff correction given the significant investments necessary to accelerate digital penetration in India.
Airtel launched its 5G network earlier this month; the Airtel 5G Plus services are already operational in eight Indian locations. The company stated in its earnings report that by March 2024, it will have coverage in all major urban and rural locations nationwide.