Airtel net profit in Q3 dives on Jio onslaught
TNN | Feb 1, 2019, 07:21 IST
Representative imageNEW DELHI: Stiff competition continued to batter the profits of Bharti Airtel as it posted a 72% decline (yearon-year) in earnings in the third quarter (October-December) of 2018-19, hit hard by aggressive tariff and customer-acquisition spree of Reliance Jio. A little ray of hope for Airtel was a 4% growth in average revenue per user (ARPU) — the mostcritical metric to judge the performance of telecom companies — on a sequential basis, although ARPU was down 15% year-on-year.
The company, which has lost the crown of the top telco to Vodafone-Idea, has been facing a tough time since the launch of Jio in September 2016. Its profits have been in a downward spiral since then, shrinking from Rs 1,461crore in Q2 of 2016-17 to Rs 86 crore in Q3 of 2018-19.
The company’s subscriber base shrunk by 4.8 crore at the end of the third quarter to 28.4 crore compared to 33.2 crore users at the end of the July-September quarter.
The company, which has lost the crown of the top telco to Vodafone-Idea, has been facing a tough time since the launch of Jio in September 2016. Its profits have been in a downward spiral since then, shrinking from Rs 1,461crore in Q2 of 2016-17 to Rs 86 crore in Q3 of 2018-19.
The company’s subscriber base shrunk by 4.8 crore at the end of the third quarter to 28.4 crore compared to 33.2 crore users at the end of the July-September quarter.
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