Bharti Airtel (BHARTIARTL) Q1 24/25 earnings summary

Executive summary

• Revenue for Q1 FY25 grew 2.3% sequentially to INR 1,911 crore, with strong smartphone customer additions of 703,000 compared to 641,000 in the previous quarter.

• ARPU increased to INR 205, and data usage per customer reached 25.7 GB, the highest in the last four quarters.

• EBITDA stood at INR 912 crore with a margin close to 48%, and net income for the quarter was INR 511 crore.

• Profit for the quarter rose to Rs. 47,175 million, more than doubling from Rs. 20,682 million in the previous quarter, driven by exceptional gains.

• Total comprehensive income for the quarter was Rs. 47,051 million, a significant turnaround from a loss of Rs. 34,099 million in Q1 FY24.

Financial highlights

• Revenue grew 2.3% sequentially to INR 1,911 crore, with ARPU rising to INR 205 and data usage per customer at 25.7 GB.

• EBITDA margin was close to 48%, with EBITDA at INR 912 crore.

• Net income for the quarter was INR 511 crore.

• Net profit margin improved to 12.3% from 5.5% sequentially and 4.1% year-over-year.

• Basic EPS for the quarter was Rs. 7.21, compared to Rs. 3.61 in the previous quarter and Rs. 2.84 in Q1 FY24.

Outlook and guidance

• Management expects the positive impact of tariff increases to flow through over the next two quarters.

• Capex for the full year is expected to be lower than the previous year.

• The company secured 97 MHz spectrum in the latest auction for Rs. 68,567 million, payable over 20 years, supporting future growth.

• All deferred liabilities for spectrum acquired in 2012 and 2015 have been fully prepaid, improving the balance sheet.

• Focus remains on broadband growth, with broadband share of business rising from 3% to 4%.