Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Tuesday, July 22, 2014  

Bharti Q2 profit slumps 30% on stiff competition
NEW DELHI/MUMBAI Top Indian telecommunications carrier Bharti Airtel will struggle to improve its profits in the coming quarters amid an uncertain regulatory environment in its home market after the company reported its 11th consecutive quarter of profit decline with margins pressured by intense competition.

Bharti on Wednesday reported its consolidated net profit fell 30 per cent from a year earlier to Rs7.21 billion for the three months to September, despite a one-off gain of Rs2.39 billion from an outstanding dispute over inter-connect charges.

Bharti said revenue for the September quarter rose 17.4 per cent from a year earlier to Rs202.7 billion.

Competition is seen abating in the world’s second-biggest mobile phone market after a court order revoked the permits of several smaller carriers, which is a positive for market leaders Bharti and the local unit of Vodafone Group.

India’s leading carriers, however, face the risk of paying out billions of dollars in regulatory fees over the next few years with the government planning to impose a surcharge on airwaves held by them and also due to reallocation, or switching, of their superior quality spectrum when their permits are renewed.

“The worry remains regulation,” said Vivekanand Subbaraman, a telecommunications analyst at PhillipCapital India. “The regulatory concerns have overshadowed operating performance,” he said, adding Bharti could continue to see its margins eroding. India is planning to levy more than $5.5 billion in surcharges on airwaves held by older telecom companies, from which Bharti’s payout is estimated to be just under $1 billion.

There is also a plan to replace superior quality airwaves of companies, including Bharti, with relatively inferior quality airwaves when their permits are renewed starting in late 2014, which will significantly push up the carriers’ capital expenditure apart from paying for the replacement airwaves.

“With consolidation happening, I think tariffs will have to correct (increase),” Sanjay Kapoor, chief executive for Bharti’s India and South Asia operations, told a news conference after the results were released. “(But) you cannot go and raise prices in isolation.”

Revenue from voice calls accounts for about 85 per cent of Indian carriers’ revenue, with mobile data still at a nascent stage. Operators launched high-speed 3G networks last year, but less than 5 per cent of the more than 900 million customers have subscribed to the premium services.

Losses in its Africa operations widened to Rs5.39 billion from Rs4.27 billion a year earlier. But operating margins in Africa improved to 27.1 per cent from 26.4 per cent a year ago. For its India and South Asia operations, margins dropped to 32.7 per cent from 36.1 per cent a year earlier.

Reuters
NEWS UPDATES
Oman
CSC marks graduation of 27th batch
OCCI hosts Al Toobi
New recruits join OCEC team
Other Top Stories
Iran eliminated most sensitive N-material: IAEA
We have solid proof of Russian complicity in MH17 crash: US
2 Israeli soldiers killed are US citizens
Sure of victory, thanks to Russia: Syria
Rebels attack army base in Benghazi
Russia contests charge rebels shot down MH17
India
Katju allegation snowballs into controversy
Angry students clash with police in Bangalore over rape of child
Railways to remodel conventional toilets by 2022
Government promises to extend broadband facility to all villages
6 more encephalitis deaths in W. Bengal
Guns fall silent along international border
Pakistan
Man arrested for abduction, rape in Pakistan
Middle East
Militants attack army base in Benghazi, 1 dead
Weary Palestinians cheer up over report of Israeli soldier’s capture
Libyan rebel leader appeals against ruling in torture case
‘Tortured’ Palestinian teenager describes Israeli police brutality
Gaza paramedics ‘united’ amid war
Asia
Protesters clash with police over cross removal in China
Subianto should accept defeat, says Yudhoyono
Rammasun death toll mounts in Philippines
Business
India holds up WTO deal on trade facilitation
OTI closes oversubscribed $1.05b borrowing facility
Samena moots spectrum harmonisation across Mena region
Oil edges higher over Iran woes
Sensex rises to two-week high; RIL gains 2.1%
ICICI will become India’s top bank with ‘profitable model’
Trai recommends sharing of all categories of telecom spectrum
HDFC Bank Q1 profit rises 21%
Panasonic plans to sell online through E-Store
German economy to stagnate in Q2, says Bundesbank
Murdoch to consolidate Chinese presence with Time Warner deal
Tesco boss steps down amid profit warning
Sports
Sharma wrecks England at Lord’s
Dhoni instructed me to bowl bouncers: Ishant
Lessons from 2011 helped: Dhoni
Brazil have fallen down pecking order
Exeter lift silverware in Rio rematch
Dunga eyes second stint
Negredo out for several months with broken foot
Six Shakhtar players face penalties if they stay away
McIlroy – true heir apparent to Woods
Nicklaus, Tiger all praise for McIlroy
Oman Engineering win Forbes Ramadan Cricket
Tomic climbs to 70 in latest ATP rankings
ORT all set for Belgium challenge

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution