Airtel's Africa biz Q2 net loss at $95 mn on account of forex
Bharti Airtel's Africa operations have recorded net loss of USD 95 million for the quarter ended September 30, mainly on account of foreign exchange losses in the region.
New Delhi: Bharti Airtel's Africa operations have recorded net loss of USD 95 million for the quarter ended September 30, mainly on account of foreign exchange losses in the region.
"Bharti Airtel's Africa operations posted a net loss of USD 95 million out of which 2/3rd is on account of forex loss and actual operational loss for the quarter stood at USD 30 million which is included in the total figure," Bharti Airtel said today.
The company had reported a net loss of USD 81 million during the July-September quarter 2010.
"This is the first full quarter of comparable consolidated results post the Africa acquisition," the company said in a statement.
Total revenues from African operations rose to USD 1,030 million during Q2 this fiscal, up 23 percent over Rs 838 million in the same quarter in 2010-11.
Africa revenues crossed USD 1 billion per quarter for the first time, the company said.
Bharti Airtel CMD Sunil Mittal said, "Africa has notched up strong revenue growth of 23 percent. The company has launched 3G services in Congo B and Airtel Money in Zambia and Kenya."
He added, "We continue to expand our footprint across Africa, with our recent acquisition of 2G and 3G licence in Rwanda."
The monthly ARPU of Airtel's African operations stayed flat at USD 7.3 during the quarter, while average usage increased to 128 minutes from 121 minutes in the June quarter this year.
"Africa is offering a stable performance and now started to make a contribution may be in a small way to the overall growth of Bharti Airtel and we are confident that Africa will become major contributor quarter-on-quarter to Bharti Airtel," Bharti Airtel CEO (International) and Joint Managing Director Manoj Kohli said.
During the current fiscal, the company plans to invest in the range of USD 1.4 to USD 1.5 billion in Africa operation, out of which it already has spent around USD 1 billion.
"Overall tariffs structure is stable even though in few markets we have increased tariffs to cover our input cost," Kohli said.
The company offers mobile services using GSM technology in 16 countries across Africa. The company currently serves 48.4 million customers in these geographies.
During the current quarter Airtel has been awarded the license to operate 2G and 3G network services in Rwanda.
At the end of September 30, the company's employee strength in Africa stood at 5,115, down 1,256 employees from the same period last year.
During the quarter, the company incurred capital expenditure of USD 575 million on its African Operation.
Last year, Bharti acquired Zain Telecom's Africa operations for USD 10.7 billion to become the world's fifth-largest mobile operator.