Mobile segment continues to drive Airtel growth - by TAnGu_Ahu
Strong subscriber additions in the mobile phone business have helped Bharti Airtel close the financial year 2007-08 with a solid set of numbers. Revenues have grown by 46 per cent to Rs 27,025 crore, while net profits have increased 57 per cent to Rs 6,700.8 crore during the year. Healthy subscriber growth and increasing minutes of usages on account of innovative tariff schemes have helped the mobile segment. The enterprise services segment has not grown as strongly, recording a 28 per cent growth in revenues. The broadband segment (telemedia services), thanks to good subscriber additions, has grown revenues by 27 per cent.
The company has added 24.8 million subscribers during the past year and continues to be the market leader, with a 23.8 per cent share. The average revenue per user has fallen 12 per cent over the year to Rs 357, but has been relatively stable at this level for the past two quarters.
The minutes of usage per user have gone up from 478 to 507. This increase may be attributable to the ‘lifetime’ recharge plan and the lowering of tariff on all local calls to Re 1 per minute, which has attracted new customers in the pre-paid as well as post-paid segments.
While this may lower realisations, it does pave the way for increased talk time-driven growth. The company is in the process of receiving additional spectrum in six circles, which will speed up subscriber additions. With the rollout of mobile services, including 3G services in Sri Lanka, in the next few months, this segment has much to look forward to over the next year.