An Increase in Users and Revenue for Airtel
2 min read
Airtel reported a net profit of Rs. 759 crores for the quarter ended 31st March 2021. A fall of 11.1% from the previous quarter when the profit stood at Rs. 853.6 crores. The revenue of the company fell by 3% in the quarter to Rs. 25,747.3 crores while showed a 12% increase from the previous financial year.
The average revenue per user of Airtel has fallen by nearly 13% from 166 to 145. According to the company, this is due to the abolishment of the interconnect usage charges (IUC). Analysts had expected the fall to be to 154. Airtel is consistently managing to win users and gaining subscribers. The company managed to add 13.7 million new users in the March quarter after 12.9 million users in December.
Bloomberg reported that the active user base of Bharti Airtel grew by 1.1% in February compared to January, while the base of Jio and Vodafone Idea fell by 0.05% and 0.1% according to the TRAI February data. With pandemic and work from home continuing the company has also managed to accelerate the penetration of Airtel Xstream with the highest addition ever of 2,74,000 users reaching a total base of 3 million users!
The share of Bharti Airtel fell by 2% ahead of the Q4 earnings announcement and has lost 3.51% in the past few days. It will be interesting to see how the share reacts to the figures today.
