Bharti Airtel (BHARTIARTL) Q4 01/02 earnings summary

Executive summary

• FY02 consolidated revenue was Rs 15,041m and EBITDA Rs 3,796m; net loss was Rs 1,805m, including Rs 972m of pre-operative expenses written off.

• Mobile services contributed 82% of revenue; the March 2002 customer base was 1.636m, up 94% YoY.

• Expansion added mobile, fixed-line and long-distance licenses, while the first consolidated accounts had no prior-year comparison.

Financial highlights

• Consolidated revenue Rs 15,041m; EBITDA Rs 3,796m; cash profit Rs 2,709m; EBT loss Rs 1,956m; net loss Rs 1,805m.

• Stand-alone interest, lease rental and other income was Rs 662m; EBITDA Rs 177m, cash profit Rs 87m and net profit Rs 1m.

• Mobile revenue was Rs 12,476m; fixed-line Rs 1,631m; national long distance Rs 327m; broadband Rs 745m.

• Revenue from mobile services was 82% of consolidated revenue; fixed-line was 11%.

• Consolidated net loss included Rs 972m of pre-operative expenses charged off; cash generated from operations was Rs 2,162m.

Outlook and guidance

• After all 15 licensed mobile circles became operational, management expected mobile market share to rise beyond 23% from 23% at the time of the statement.

• Future funding needs were expected to center on capex and working capital for new projects; additional debt was anticipated.

• Planned priorities included customer retention, value-added services, profitable growth and expanding long-distance coverage, subject to interconnect arrangements.