Bharti Airtel (BHARTIARTL) Q4 19/20 earnings summary

Executive summary

• FY 2019-20 consolidated revenue rose 8% YoY to ₹875,390m; underlying growth was 11%. EBITDA increased 41% to ₹371,053m, while the year ended with a ₹321,832m net loss.

• Network expansion, tariff realization and customer additions supported operating performance; COVID-19 lockdowns brought uncertainty to the near-term economic and business outlook.

Financial highlights

• Consolidated EBITDA margin was 42.4% vs 32.5%; EBIT rose 94.1% to ₹92,447m, with a 10.6% margin vs 5.9%.

• Loss before exceptional items and tax narrowed to ₹26,121m from ₹46,606m; net loss after exceptional items was ₹321,832m vs ₹4,095m net income.

• Exceptional items had a ₹288,123m net-of-tax impact, led by AGR-related license and spectrum charges, OTSC reassessment and investment impairment.

• Cash profit from operations before derivative and exchange fluctuations rose to ₹254,951m from ₹167,777m; FY capex was ₹253,586m, down 11.8%.

Outlook and guidance

• Remote work, rising data use, broadband demand, digital services and mobile money were identified as growth opportunities in India and Africa.

• Network investment, 4G coverage, customer experience and digital platforms remained strategic priorities; 5G trials and network readiness were in development.

• COVID-19’s duration and economic effects remained uncertain; lockdown-related traffic growth was met with network capacity, bandwidth and operating changes.