BUSINESS

Due to the depreciation of the Nigerian naira, Airtel’s Q4 net profit drops to Rs 2,072 cr

The second-biggest telecom operator in the nation, Bharti Airtel, revealed a 31.1% year-over-year (YoY) decline in its consolidated net profit to Rs 2,072 crore for the March quarter of the fiscal year 2023–2024.

 

The telecom company blamed the decline in net profit on the period’s depreciation of African currencies, especially the Nigerian Naira. For Q4FY24, its consolidated revenue increased by 4.4% yearly to Rs 37,599 crore. Nonetheless, its India revenue for the quarter increased by over 13% to Rs 28,513 crore.

In Q4 of 24 Airtel’s consolidated EBITDA increased 4.2% YoY at Rs 19,590 crore. In Q4’24, the EBITDA margin is 52.1%, up from 52.2% in Q4’23. We performed consistently well across all of our companies at the conclusion of the year, meeting both financial and customer KPIs. Despite one less day in the quarter, India’s revenue (adjusted for Beetel) increased by 1.7% and the EBITDA margin increased to 54.1%.

According to Gopal Vittal, MD of Bharti Airtel, “the devaluation of the Nigerian Naira had a major impact on consolidated performance.” Our 7.8 million new smartphone users helped us achieve an industry-high ARPU of Rs 209. We reduced churn by 20% throughout the quarter as a consequence of our unwavering emphasis on enhancing the customer experience. We ended the quarter with record-breaking market share in every business thanks to our straightforward approach and laser-like concentration on execution.

The business said that robust 4G/5G user additions throughout the year, along with better realization, caused its mobile revenue to rise by 12.9% YoY. Because of its emphasis on adding quality clients and improving its mix, the company’s ARPU for the quarter was Rs 209 as opposed to Rs 193 in Q4FY23. The APRU in the December quarter was greater than ~208 sequentially.

During the quarter, Airtel gained 0.8 million postpaid users, bringing its total customer base to 51.2 million (including IoT). Over the course of the previous year, the business gained 28.6 million new 4G/5G data subscribers to its network, representing a 12.8% YoY growth.

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