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Bharti Airtel earnings soar 79%

30 Oct 2006
00:00
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(Associated Press via NewsEdge) Bharti Airtel, India's largest mobile operator, said its net profit in the most recent quarter surged 79% from a year ago, thanks to robust growth in new subscribers.

Net income during the July-September quarter totaled 9.34 billion rupees ($203 million), on revenue of 43.57 billion rupees ($947 million), the company said in a statement.

The numbers, which conform to US accounting standards, beat expectations.

A Dow Jones Newswires poll of analysts had projected net profit at 8.54 billion rupees ($189 million) during the quarter.

Bharti added a record 4 million new customers between July and September, leading to a 61% year-on-year increase in revenue during the fiscal second quarter, the statement said.

'This quarter, for the first time ever, India's mobile net additions surpassed those of China,' said Sunil Bharti Mittal, chairman and managing director.

India added about 17 million new wireless phone connections during the July-September period, taking the total to 129 million, according to the Telecom Regulatory Authority of India.

The growth, one of the fastest in the world, has been driven by low tariffs and rising middle class incomes.

The total number of users still lags far behind China, which has some 430 million mobile phone subscribers, the highest in the world.

Bharti has 27.1 million cellular subscribers in 4,000 cities and towns across the country.

Encouraged by the growth, Mittal said his company would scout for acquisitions overseas. 'The company feels confident in seeking global opportunities of small to mid-size companies, especially in the emerging markets.'

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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