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New Delhi [India], July 31 (ANI): Telecom company Bharti <keyword id="15491" type="General" weightage="20" keywordseo="Airtel" source="Orion">Airtel</keyword> on Monday said it has prepaid Rs 8,024 crores to the Department of Telecom towards prepayment of deferred liabilities pertaining to spectrum acquired in an auction held in 2015. The liabilities which were prepaid had an interest rate of 10 per cent, Airtel said in a statement. Airtel, in the statement, said it continues to enjoy access to well-diversified sources of capital or financing, allowing it to have enhanced financial flexibility in its capital structure including optimised cost of financing using all opportunities for significant interest savings. (ANI)

Airtel prepays Rs 8,024 cr to clear liabilities for spectrum acquired in 2015

New Delhi, Nov 14 () Telecom operator Bharti Airtel on Thursday posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30, due to provisioning of Rs 28,450 crore in the aftermath of the Supreme Court ruling on statutory dues.
The Sunil Mittal-led company said the apex court judgement -- which had upheld government's way of calculating revenue of telcos (on which statutory liabilities like licence fee and spectrum usage charges are computed) -- has "significant financial implication for the company".
Last month, Bharti Airtel had postponed the release of its full Q2 earnings to November citing the uncertainty in the sector in the wake of the court ruling on definition of telecom revenues.
Airtel's colossal net loss for just-ended September quarter was on account of exceptional charge pertaining to provisioning of Rs 28,450 crore towards the AGR dues, that included principle of Rs 6,164 crore, interest of Rs 12,219 crore, penalty of Rs 3,760 crore, and interest on penalty of Rs 6,307 crore.
Announcing its Q2 earnings scorecard, Airtel said its consolidated net loss before exceptional items (the one time charge) for the quarter was Rs 1,123 crore, and that the net Loss (after exceptional items) was Rs 23,045 crore.
The company had recorded net profit of Rs 119 crore in the same quarter previous year, although it said that year-on-year numbers were not comparable due to adoption of new accounting standard.
"...the liabilities / provisions as at September 30, 2019 aggregate Rs 34,260 crore (comprising of principal of Rs 8,747 crore, interest of Rs 15,446 crore, penalty of Rs 3,760 crore and interest on penalty of Rs 6,307 crore)," Airtel said in a statement.
Airtel CEO, India and South Asia, Gopal Vittal hoped that the government will take a considerate view on the adjusted gross revenue (AGR) matter given the "fragile state of the industry".
"On the AGR verdict of the Supreme Court, we continue to engage with the government and are evaluating various options available to us," he said.
The consolidated revenue of Bharti Airtel was up by 4.7 per cent at Rs 21,199 crore in the just-ended quarter. India revenues were up 3 per cent year-on-year (5.7 per cent on an underlying basis), while Africa revenues rose 12.6 per cent over the same period previous year.
"India revenues for Q2 at Rs 15,361 crore have increased by 5.7 per cent year on year (reported increase of 3 per cent) on an underlying basis. Mobile revenues have witnessed a year-on-year growth of 7.1," it added.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 8,936 crore in the Q2 FY2020 against Rs 6,343 crore in the year ago period.
The Supreme Court, last month, had upheld the government's position on including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer. Old telecom operators Bharti Airtel and Vodafone Idea were supposed to take the maximum hit on the payment of statutory dues to the government.
As per latest estimates by the telecom department, Bharti Airtel faces a liability of around Rs 62,187 crore (including share of Tata Group of companies and Telenor India), while Vodafone Idea may have to pay about Rs 54,184 crore. The remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies.
The Supreme Court has allowed three months to the affected telcos to pay amounts due to the DoT, and on Wednesday the government shot off notice to telecom operators to pay their revenue share dues within the timelines stipulated by the court. The department has given option to telecom operators to clear all the dues on self-assessment basis.
Airtel's net debt narrowed year on year basis to Rs 1,18,106.5 crore. 
"Despite being a seasonally weak quarter, we witnessed positive revenue growth in Q2 on the back of various initiatives aimed at providing superior differential services through our 'Thanks' platform. We continue to witness strong data traffic growth of about 81 per cent year-on-year and added about 8 million 4G customers on our network during the quarter," Vittal said. 
Bharti Airtel shares closed at Rs 362.65 apiece, down by 1.59 per cent compared to previous close on the BSE.
The results were announced after market hours. PRS MBI BAL

Bharti Airtel posts staggering Rs 23,045 cr net loss in Q2 after AGR provisioning

<ul><li><keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword> has posted a loss of ₹2,866 crores for Q1 FY20.</li><li>The Average Revenue Per User stood at ₹129. </li><li>In May 2019, Reliance Jio overtook Airtel to be the second largest telecom network provider in terms of user base</li></ul>Bharti Airtel has posted a loss of ₹2,866 crores for the first quarter of the current financial year. In the same quarter last year, Airtel had posted a profit of ₹97 crore. However, the company also reported a consolidated total revenue of ₹20,738 crore, which is up by 4.7% since last year. The company which has telecom operations across Africa and India, registered better in the former. Its India revenues grew marginally by 2.8%, while its African revenues went up by 10.2%. The company’s net debt now stands at ₹1,16,646 crore. Its average revenue per user or APRU which is the amount the telecom major makes per customer, stood at ₹129. The company however said that mobile data traffic growth grew by 94% since last year. “The first quarter of the year has begun with a healthy and equitable growth across all our lines of businesses. Headline pricing remained stable, albeit at low levels,” said Gopal Vittal, MD and CEO, India &amp; South Asia. The total number of employees have also gone up from 21,434 in June 2018 to 19,490 by the end of June 2019. The company said that it is working on improving network coverage. “We re-farmed spectrum from 3G networks to 4G across both the 900 as well as 2100 bands and begun the process of shutting down 3G networks in India. This has enabled us to deliver improved indoor coverage as well as enhance our capacities,” said Vittal. Airtel has been dealing with the rising pressure from Mukesh Ambani’s Reliance Jio. In May 2019, Reliance Jio overtook Airtel to be the second largest telecom network provider in terms of user base, whereas in terms of revenue it has already overtaken Vodafone Idea to hold the number uno position. Airtel lost 1.5 million users in May alone – it went from 321.8 million users in April to have 320.3 million. Its total consumer base stands at 404 million across 16 countries.

Airtel posts a massive net loss of ₹2,866 crore, as pressure from Reliance Jio rises

<ul><li>Moody’s, an international ratings agency, downgraded <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword>’s debt to “significant credit risk” or “Ba1”, giving the telecom major an overall negative outlook. </li><li>This is due to the ongoing price war in the telecom market, which has hurt Airtel’s profitability and cash flows. </li><li>The decision means that Airtel will have a tougher time securing loans from banks and issuing bonds at capital markets. </li></ul> Earlier this morning, Moody’s, an international ratings agency, <a href="https://www.moodys.com/research/Moodys-downgrades-Bhartis-senior-unsecured-notes-to-Ba1-and-assigns--PR_394623">downgraded Airtel’s debt </a>to “significant credit risk” or “Ba1m”giving the telecom major an overall negative outlook. This was the first time that Airtel received this <keyword id="46713" type="ORGANIZATION" weightage="20" keywordseo="rating">rating</keyword> for its senior unsecured debt. The reason? The competitive nature of the Indian telecom market. The ongoing pricing war in India’s telecom sector in the aftermath of <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword> entering the market, has seen service providers offer rock-bottom prices and unlimited data packages, significantly denting their profitability and revenues. Moody’s Vice President, Annalisa DiChiara, attributed the decision to, “uncertainty as to whether or not the company's profitability, cash flow situation and debt levels can improve sustainably and materially.” Airtel’s profitability is expected to remain subdued over the next few quarters as pricing pressures continue. For the quarter ended December 2018, Airtel’s profit fell again, <a href="https://s3-ap-southeast-1.amazonaws.com/bsy/iportal/images/Quarterly-Report-Bharti-Airtel-Consol_Q3FY19_4349CA977C462E97C72E764B9154A657.pdf">declining by 72%</a> to ₹860 million while the total number of subscribers fell by 58 million. The quarter also marked the first time that Airtel’s mobile services revenue was lower than that of rival Reliance Jio. In response to the ratings action, Airtel’s share price dipped below the ₹300 level in the first session of trading today, falling by 4%. The decision by Moody’s means that Bharti Airtel will have a tougher time securing loans from banks and issuing bonds at capital markets - because it will have to take out debt at higher rates. At the end of December 2018, Airtel’s net debt burden stood at a little <a href="https://s3-ap-southeast-1.amazonaws.com/bsy/iportal/images/Quarterly-Report-Bharti-Airtel-Consol_Q3FY19_4349CA977C462E97C72E764B9154A657.pdf">over ₹1.06 trillion</a>, representing a 27% increase in the preceding two years. Reliance Jio entered the Indian telecom space in September 2016. In November 2018, Moody’s put Airtel on a <a href="https://economictimes.indiatimes.com/markets/stocks/news/moodys-places-bharti-airtels-rating-on-review-for-downgrade/articleshow/66546533.cms">“ratings watch”</a>, indicating a risk of a downgrade, after citing the company’s declining profits and cash flow problems. Following the ratings watch, Airtel moved quickly to reportedly raise loans of <a href="https://www.livemint.com/Companies/Nu2IZWORFqqDrB2yGd9OLM/Bharti-Airtel-signs-for-over-2-billion-loan-amid-threat-of.html">over $2 billion</a> prior to the actual downgrade. The ratings agency will now review Airtel’s rating once it demonstrates a recovery in mobile revenue and culls its debt burden. For its part, the company is planning to raise as much <a href="https://economictimes.indiatimes.com/markets/stocks/news/bharti-airtels-revenue-ebitda-may-rebound-in-fy20-fitch/articleshow/67831457.cms">as $3 billion</a> through asset sales in the coming year to pay back its debt obligations. SEE ALSO: <a href="https://www.businessinsider.in/facing-a-furious-price-war-at-home-indias-largest-telecom-company-airtel-is-being-forced-to-backpedal-on-its-global-ambitions/articleshow/66344423.cms">Facing a furious price war at home, India’s largest telecom company Airtel is being forced to backpedal on its global ambitions</a> <a href="https://www.businessinsider.in/indias-largest-telco-is-eyeing-two-deals-to-reduce-its-high-debt-levels/articleshow/64107203.cms">India’s largest telco is eyeing two deals to reduce its high debt levels</a>

Airtel just got assigned its lowest credit score by an international ratings agency as pricing pressures continue

Telecom giant Bharti <keyword id="15491" type="COMPANY" weightage="100" keywordseo="Airtel">Airtel</keyword> will invest $1 billion a year in <keyword id="12925" type="ENTERTAINMENT" weightage="60" keywordseo="Africa">Africa</keyword> over the next few years. 
 "Airtel will invest $1 billion in Africa per annum over the next few years," Bharti Enterprises founder and chairman <keyword id="6442632" type="PERSON" weightage="100" keywordseo="Sunil-Bharti-Mittal">Sunil Bharti Mittal</keyword> stated on the sidelines of the World Economic Forum. 
 
Airtel operates in 17 African countries and provides 3G services in 14 of them. 
 
Mittal also said that the company would focus more on existing operations instead of expanding to new markets. 
 Airtel had ventured into the African market in 2010 after acquiring <keyword id="79798" type="COMPANY" weightage="80" keywordseo="Zain-Telecom">Zain Telecom</keyword> for about $10.7 billion. It had made capital expenditure of $635 million in FY2013-14. Airtel’s total investment amounted to $14,388 million in the continent at the end of 2013-14. 
 
Airtel Africa saw 2% growth in revenues for the last of quarter of 2013-14. It registered a net loss of $124 million, compared to a net loss of $91 million in the corresponding quarter of 2012-13. 
 
For Airtel, the average revenue per user in the African continent saw a decline of 7% to $5.5. 
 
However, the number of data customers in Africa during the last quarter of 2013-14 increased 53.5% to 22.3 million, which is now 32.1% of the total customer base.

Bharti Airtel To Invest $1 Billion Every
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Airtel prepays Rs 8,024 cr to clear liabilities for spectrum acquired in 2015

ANI

Bharti Airtel posts staggering Rs 23,045 cr net loss in Q2 after AGR provisioning

PTI

Airtel posts a massive net loss of ₹2,866 crore, as pressure from Reliance Jio rises

Sanchita Dash

Airtel just got assigned its lowest credit score by an international ratings agency as pricing pressures continue

Dilsher Dhillon

Bharti Airtel To Invest $1 Billion Every Year In African Markets

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