In India, there is a fierce competition among telecom vendors. The condition has more intensified after the Supreme Court’s decision on hearing of 2G scam petitions. Recently, Bharti Airtel has reportedly released its Q4 earnings of fiscal 2012. The company has reported total revenue of RS 18, 729 crore (almost $3.53 billion) for the quarter, up 15% compare to the same quarter a year back. Despite of the Supreme Court Decision in India, the Indian telecom giant has proven itself that how bullish it is about its business. And I think, the decision has not yet affected the largest Indian telecom giant as much we expected earlier. According to the report, the net profit of the company was Rs 1,401 crore (USD 0.26 billion) in the Q4 of this year ending March of this year. However, higher costs of 3G license have somehow affected the company to generate more revenue in the quarter ending March of this year.
Airtel’s mobile revenue in India grew to Rs 10509 crore (US$1.98 billion) for the quarter, up 6.8% compare to the prior year, while Earnings before Interest, Tax, Depreciation and Amortizations (EBITDA) grew to Rs 3571.9 crore (US$0.67 billion), up 6.26% compare to the same quarter a year before.
As per MediaNama’s calculations, Data and VAS contributed RS 599.05 crore (US$0.11 billion) for the quarter, up 12.17% compare to the previous quarter of the same fiscal year. It’s quite clear from the report that Data and VAS accounted 5.7% to total revenue of the company in the last quarter ending March of this year. However, company’s revenue from SMS has been declined to RS 914.34 crore (US$0.17 billion) from quarter-over-quarter, but it was still 60% of the total non-voice revenue of the company for the quarter ending in March of this year. Non-Voice revenues grew by 4.19% from quarter-over-quarter to RS 1513.38 crore (US$0.28 billion) in Q4 of fiscal 2012.
It’s pretty clear that an increasing VLR percentage during the quarter accounted more revenue for the company. During the quarter, Idea and Airtel together had highest percentages of active users in the market. Undoubtedly, Airtel succeeded to grow its mobile traffic through declining in its ‘rate per minute’ tariff during the last quarter of fiscal 2012.
In Q4 of fiscal 2012, telemedia business of Airtel was not so impressive. It was somewhat flat compare to the previous quarter of the same fiscal year. Numbers of active user declined in the Q4 of fiscal 2012 due to company’s decision to increase average revenue per user from Rs915.86 to Rs 933. However, EBITDA increased from Rs354.21 crore (US$66.9 million) to RS 375.4 crore (US$70.9 million) in the last quarter. The company has succeeded to add more number of mobile broadband users across the country, and according to its quarterly report, it has reached to around 1.4 million.