India’s second-largest telecom operator Bharti Airtel posted a 43% rise in quarterly profit on Tuesday, driven by new users and the lingering benefits of last year’s price hikes.
The company’s consolidated net profit rose to 59.48 billion rupees ($677.73 million) for the quarter ending June 30, from 41.6 billion rupees a year ago, marking its fifth straight quarter of profit growth.
Airtel’s industry-leading average revenue per user (ARPU) - a key telecom metric - rose 2% sequentially and 18.5% year-on-year to 250 rupees.
India’s three private mobile carriers – Reliance Industries-owned-Jio, Airtel, and Vodafone Idea - raised tariffs in July 2024 for the first time in more than two years, as their focus shifts to monetisation from fierce competition for market share.
Last month, Jio reported an ARPU of 208.8 rupees for the quarter and a 23.3% rise in profit.
Vodafone Idea, which is yet to report results, had an ARPU of 175 rupees as of March-end.
India’s telecom sector has logged intense competition for market share since Jio’s entry in 2017, with the Reliance group company overtaking peers to command the largest user base.
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Airtel’s India user base rose 6.6% year-on-year to 436 million as of June 30, compared to Jio’s 498.1 million.
Its overall revenue was in line with analyst estimates, rising 28.5% to 494.63 billion rupees.
Indus Towers’, consolidation following Airtel assuming control of the telecom infrastructure provider last year, also helped lift Airtel’s top line.
Total expenses climbed 15%, due to a 23% rise in network expenses.
Bharti Airtel’s shares closed 0.9% higher ahead of results.
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