Shares in Bharti Airtel closed 6.3 per cent lower ahead of the earnings announcementTelecom major Bharti Airtel on Thursday reported a net profit of Rs 118.8crore in the July-September quarter.
That marked a 65.4 per cent decreasecompared with Rs 343 crore in the corresponding period a year ago.Revenue stood at Rs 20,422.5crore, as against Rs 21,776.9 crore in the year-ago period, marking a fall of 6.2 per cent.Led by our focus on quality customers through simplified pricing and content partnerships, ARPU decline has moderated in this quarter.
We remain focused on driving quality base growth with value adding propositions for our customers," saidGopal Vittal, MD and CEO, India South Asia, Bharti Airtel.The earnings report came a day after the company announced thatsix global investors, including Warburg Pincus, Temasek, Singtel and SoftBank Group International, had agreed to invest $1.25 billion in Airtel Africa through a primary equity issuance.The investment would be used to reduce Airtel Africa's existing debt of approximately $5 billion and for growth of its African operations, the company had said on Wednesday.Net revenue from its Africa business grew 13.2 per cent year-on-year in the quarter ended September 30, the company said.Its domestic average revenue per user (ARPU) during the quarter fell 28.8 per cent to Rs 101, while Africa ARPU dropped to $3 from $3.2 last year.Shares in Bharti Airtel closed 6.3 per cent lower at Rs296 apiece on the NSE, ahead of release of the quarterly report card.
The shares underperformed a market that shed 1 per cent amid a global selloff.The telecom industry has been battered by a price war, sparked by the entry of rival telecom company Reliance Jio Infocomm.
Meanwhile, Idea Cellular and Vodafone have merged their operations in the country to create the country's largest telecom operator.