Bharti Airtel Ltd (BOM:532454) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...

GuruFocus News
4 min read

In This Article:

  • Consolidated Revenue: INR41,400 crores.

  • India Revenue: INR31,500 crores, up 8.7% sequentially.

  • EBITDA Margin: 54.8%, an improvement of 1.1%.

  • Operating Free Cash Flow: INR11,000 crores.

  • CapEx: INR6,250 crores.

  • Net Debt to EBITDA (India): 2.6, down from 3.1 a year ago.

  • ARPU: INR250, up from INR211 in the previous quarter.

  • 5G User Base: 105 million.

  • Home Passes: Over 23.5 million, with 1.5 million added quarterly.

  • Monthly Transacting Users (Payments Bank): Just under 86 million, with a 20% synergy.

  • Annualized Revenue Run Rate (Payments Bank): Over INR2,600 crores, growing 58% year-on-year.

  • Deposits (Payments Bank): Over INR2,950 crores, growing by 43% year-on-year.

  • Africa Revenue Contribution: 25% of total revenues.

  • India Mobile Revenue Contribution: 60% of total revenues.

  • India Non-Mobile Revenue Contribution: 15% of total revenues.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bharti Airtel Ltd (BOM:532454) reported a solid quarter with consolidated revenue of INR41,400 crores, showing strong performance in India with an 8.7% sequential increase.

  • The company achieved the highest ever quarterly operating free cash flow of INR11,000 crores, demonstrating strong financial management.

  • Bharti Airtel Ltd (BOM:532454) has made significant progress in its ESG initiatives, including solarizing over 3,500 sites and achieving a 4% reduction in Scope 1 and 2 emissions.

  • The company continues to expand its network, rolling out about 5,000 network sites and deploying recently purchased spectrum to enhance its network capabilities.

  • Airtel Finance is showing promising growth, serving over 1 million customers and achieving an annualized growth rate of over INR3,000 crores in financial services.

Negative Points

  • Bharti Airtel Ltd (BOM:532454) experienced a loss of 2.9 million customers in the mobility business due to SIM consolidation triggered by tariff repair.

  • The DTH segment saw a loss of over 500,000 customers, indicating challenges in this area of the business.

  • The company's net debt in India increased by INR6,000 crores due to spectrum procurement, impacting the overall debt position.

  • Enterprise margins have been gradually decreasing over the last six months, attributed to a changing revenue mix and competitive pressures.

  • The company faces challenges in the global business, with improvements in customer discussions not yet translating into firm orders.

Q & A Highlights

Q: Can you discuss the customer response and unit economics of Fixed Wireless Access (FWA) compared to fiber broadband? A: Gopal Vittal, CEO, explained that the customer response to FWA has been positive due to the empty nature of the 5G network, providing good speeds. The unit economics are now comparable between FTTH and FWA, thanks to reduced costs of fixed wireless access equipment. CapEx is expected to moderate this year, with a decrease from last year's elevated levels due to extensive rollouts.

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