Bharti Airtel Quarterly Profit Drops by a Third

­India's Bharti Airtel has announced that its first fiscal quarter revenues rose by 17.4% to 12,231 crore (US$2.64 billion) - which included 23 days of contributions from the former Zain Africa assets. Consolidated underlying EBITDA of Rs. 4,512 crore (US$973 million) grew by 5% over the previous year. Underlying EBITDA margins continued to be robust at 36.9% after absorbing a conservative provision of Rs. 104 crore for the proposed spectrum cost hike in India; though this has been stayed by the regulator.

Net profit dropped by 32.0% Rs. 1,682 crore US$363 million), mainly due to the adverse impact of the strengthening of the US Dollar against the Indian Rupee and several African currencies.

During the quarter, the Company acquired the African operations of Zain for an enterprise value of US$ 10.7 billion. The 3G licences in 13 circles and BWA licences in 4 circles in India were acquired at a total cost of Rs. 15,610 crore (US$ 3.3 billion). Capex spend during the quarter was restricted to Rs. 1,836 crore (US$ 394 million) due to delays in security clearances for equipment imports.

In a statement, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel, said "The first quarter witnessed the successful completion of the acquisition of Zain's mobile operations in 15 African countries. We also won valuable 3G and BWA licenses in India, which will transform Airtel into a lifestyle enabler. Our business in India and South Asia got off to a solid start with robust revenue growth and healthy margins. This reaffirms our conviction that leaders emerge stronger in a hyper competitive market."