Bharti Airtel Limited

Transcription

1 Bharti Airtel Limited Registered Office: Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi , India CIN: L74899DL1995PLC T: , F: , id:

2 Standalone Audited Segment wise Revenue, Results and Capital Employed for the quarter and six months ended September 30, 2015 # Includes foreign exchange fluctuations in respect of loans given to subsidiaries. * Excludes inter segment assets and liabilities. **Includes borrowings for 3G and BWA licenses (including spectrum) of Rs. 9,000 Mn, Rs. 17,930 Mn, Rs. 14,153 Mn and Rs. 19,285 Mn as of September 30, 2015, June 30, 2015, March 31, 2015 and September 30, 2014, respectively. (This space has been intentionally left blank)

3 Notes to the financial results 1. The financial results for the quarter and six months ended September 30, 2015 have been reviewed by the Audit and Risk Management Committee and approved by the Board of Directors in their meetings held on October 25, 2015 and October 26, 2015, respectively. 2. Reserves and surplus as at September 30, 2015 include Rs. 425 Mn, towards Employee Stock Options Outstanding. 3. During the quarter ended September 30, 2015, the Company made the following additional equity investments in its wholly owned subsidiaries: i) USD 575 Mn (Rs. 37,705 Mn) in Bharti Airtel International (Mauritius) Limited; and ii) Rs. 450 Mn in Airtel M Commerce Services Limited. 4. During the quarter ended September 30, 2015, the Company has signed a definitive agreement to acquire 100% equity stake in Augere Wireless Broadband India Pvt. Ltd. The acquisition is subject to necessary statutory and regulatory approvals. 5. Exceptional items during the quarter ended September 30, 2015 comprise of: (i) charge of Rs. 2,069 Mn towards operating costs on network refarming and up-gradation program; (ii) regulatory fee provisions of Rs. 1,373 Mn arising out of re-assessment of certain positions and (iii) tax benefit of Rs. 1,020 Mn on the above. 6. Other income for the quarter ended September 30, 2015 includes dividends from subsidiary companies amounting to Rs. 9,470 Mn. 7. The Company, in its Annual General Meeting held on August 21, 2015, declared final dividend at the rate of Rs per equity share (face value of Rs. 5 each) aggregating to Rs. 8,874 Mn. 8. On January 8, 2013, the Department of Telecommunications ( DoT ) issued a demand on the Company for Rs. 51,353 Mn towards levy of one time spectrum charge. Based on a petition filed by the Company, the Hon ble High Court of Bombay, through its order dated January 28, 2013, has directed DoT to respond and not to take any coercive action until the next date of hearing. The Company, based on independent legal opinions, till date has not given any effect to the above demand. (This space has been intentionally left blank)

4 9. In terms of Clause 41 of the listing agreement, the audited statement of assets and liabilities is as follows: 10. Previous year s / period s figures have been regrouped / rearranged, wherever required. For Bharti Airtel Limited Sd/- Gopal Vittal Managing Director and CEO (India & South Asia) Singapore October 26, 2015 Bharti Airtel, or Company, stands for Bharti Airtel Limited. For more details on the financial results, please visit our website

5 Bharti Airtel Limited Registered Office: Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi , India CIN: L74899DL1995PLC T: , F: , id:

6 Consolidated Audited Segment wise Revenue, Results and Capital Employed for the quarter and six months ended September 30, 2015 * Segment results include share of results of the joint ventures and associates. ** Comprises borrowings, including borrowings for acquisition of Africa operations and other borrowings of Africa operations of Rs. 476,162 Mn (USD 7.24 Bn), Rs. 535,430 Mn (USD 8.4 Bn), Rs.554,776 Mn (USD 8.86 Bn) and Rs. 579,738 Mn (USD 9.41 Bn), for 3G and BWA licenses ( including spectrum) of Rs. 21,150 Mn, Rs. 31,580 Mn, Rs. 45,153 Mn and Rs. 39,285 Mn as of September 30, 2015, June 30, 2015, March 31, 2015 and September 30, 2014, respectively, provision for taxes, deferred tax asset/ liabilities and fair value of derivative financial instruments. Notes to the financial results 1. The financial results for the quarter and six months ended September 30, 2015 have been reviewed by the Audit and Risk Management Committee and approved by the Board of Directors in their meetings held on October 25, 2015 and October 26, 2015 respectively. 2. In terms of clause 41 of the listing agreement, the Company has voluntarily adopted International Financial Reporting Standards ( IFRS ) notified by the International Accounting Standards Board, for the purpose of the preparation of consolidated financial statements w.e.f. April 1, 2010 and has decided to publish only the consolidated financial results in the newspapers. However, the standalone financial results of the Company are being submitted to the stock exchanges and will also be available on the Company s website (

7 3. During the quarter ended September 30, 2015, the Company made the following additional equity investments in its wholly owned subsidiaries: i) USD 575 Mn (Rs. 37,705 Mn) in Bharti Airtel International (Mauritius) Limited ii) Rs. 450 Mn in Airtel M Commerce Services Limited. 4. Subsequent to the quarter ended September 30, 2015, agreement for sale of tower assets in Malawi with Eaton Towers Africa has lapsed and therefore stands terminated thereby. Accordingly, assets and the related liabilities have been re-classified from held for sale to its earlier classification and the related depreciation charge of Rs. 166 Mn pertaining to previous quarters has been considered as an exceptional item. 5. During the quarter ended September 30, 2015, the Group has entered into an exclusive discussion with Axiata Group Berhad to explore the possibility of combining business operations of their telecommunication subsidiaries in Bangladesh. 6. During the quarter ended September 30, 2015, the Group has signed a definitive agreement to acquire 100% equity stake in Augere Wireless Broadband India Pvt. Ltd. The acquisition is subject to necessary statutory and regulatory approvals. 7. During the quarter ended September 30, 2015, Bharti Airtel Employee Welfare Trust (a trust set up for administration of Employee Stock Options Plan ( ESOP ) schemes of the Company) acquired 15,00,000 equity shares of the Company from the open market at an average price of per share and transferred 625,141 equity shares from other ESOP scheme to ESOP scheme ,272 shares have been transferred to employees upon exercise of stock options, under ESOP Scheme As of September 30, 2015, the Trust holds 1,607,939 equity shares. 8. On January 8, 2013, the Department of Telecommunications ( DoT ) issued a demand on the Company and one of its subsidiaries for Rs. 52,013 Mn towards levy of one time spectrum charge. Based on a petition filed by the Company, the Hon ble High Court of Bombay, through its order dated January 28, 2013, has directed DoT to respond and not to take any coercive action until the next date of hearing. The Company, based on independent legal opinions, till date has not given any effect to the above demand. 9. Exceptional items during the quarter ended September 30, 2015 comprises of: (i) net gain of Rs. 10,440 Mn pertaining to the divestment of telecom tower assets in Zambia, Uganda and Kenya; (ii) depreciation charge of Rs. 166 Mn arising out of the termination of the tower sale agreement as referred to in note 4 above; (iii) charge of Rs. 2,136 Mn towards operating costs on network refarming and up-gradation program; (iv) regulatory fee provisions of Rs. 1,426 Mn arising out of re-assessment of certain positions; (v) charge of Rs. 116 Mn towards restructuring activities in a few countries and (vi) net tax benefit of Rs. 1,060 Mn and impact on minority interests of Rs. 93 Mn on the above. 10. The Company, in its Annual General Meeting held on August 21, 2015, declared final dividend at the rate of Rs per equity share (face value of Rs. 5 each) aggregating to Rs. 8,874 Mn.

8 11. The audited financial results of the Company as per Indian GAAP are as follows: 12. In terms of clause 41 of the listing agreement, the audited consolidated statement of assets and liabilities is as follows: *Disposal group represents telcom towers held for sale in some countries under its Africa operations. #Includes finance lease obligation 13. Previous year s / periods figures have been regrouped/ rearranged, wherever required. For Bharti Airtel Limited Sd/- Gopal Vittal Managing Director and CEO (India & South Asia) Singapore October 26, 2015 Bharti Airtel, or Company, stands for Bharti Airtel Limited. Group or Consolidated, stands for Bharti Airtel together with its subsidiaries. For more details on the financial results, please visit our website

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14 Bharti Airtel Limited Media Release October 26, 2015 Bharti Airtel Limited Growth accelerated in India & Africa High speed 4G services commercially launched in 334 towns across India; Consolidated Mobile Data traffic & revenues grow 76.3% and 49.8% respectively Y-o-Y Bharti Airtel announces consolidated IFRS results for the second quarter ended September 30, 2015 Highlights for the second quarter ended September 30, 2015 ~ Overall customer base stands at million across 20 countries, up 11.9% Y-o-Y. ~ Consolidated total revenues at Rs 23,836 crore, up 6.6% Y-o-Y on an underlying basis. ~ India revenues up 13.3% Y-o-Y on underlying basis. ~ Mobile data traffic at billion megabytes in the quarter; growth of 76.3% Y-o-Y. ~ Consolidated Mobile Data revenues at Rs 3,806 crore, up 49.8% Y-o-Y; growth across geographies. ~ Consolidated EBITDA at Rs 8,265 crore, up by 6.7% Y-o-Y, EBITDA margin up 0.8% Y-o-Y. ~ India EBITDA margin at 40.2%, up 1.6% Y-o-Y. ~ Net Income reported at Rs 1,523 crore, up 10.1% Y-o-Y. New Delhi, India, October 26, 2015: Bharti Airtel Limited ( Bharti Airtel or the Company ) today announced its audited consolidated IFRS results for the second quarter ended September 30, The consolidated revenues for Q2 16 at Rs 23,836 crore grew by 6.6% (4.3% reported Y-o-Y) on an underlying basis, adjusted for India termination rates reduction and Africa tower assets divestment over the corresponding quarter last year. Consolidated Mobile data revenues at Rs 3,806 crore grew by 49.8% Y-o-Y, uplifted by data traffic growth of 76.3%. Adjusted for the impact in reduction of termination rates, India revenues growth accelerated to 13.3% Y-o-Y (10.3% reported Y-o-Y). On an underlying basis, Mobile revenues grew by 12.3%, airtel business (B2B) by 19.0% and Digital TV by 22.6% Y-o-Y. Mobile Data revenue at Rs 2,893 crore registered a growth of 60.3% Y-o-Y in India, led by increase in the Data customer base by 27.2% and traffic by 69.9%. Data ARPU has moved up by Rs 42 (Y-o-Y) to Rs 193 in Q2 16, led by 35.9% increase in data usage per customer. Mobile Data revenues contribute to 21.5% of Mobile India revenues vis-à-vis 14.5% in the corresponding quarter last year. In constant currency terms, Africa revenues adjusted for the impact of divestment of tower assets grew by 5.1% Y-o-Y (4.0% reported Y-o-Y). Data revenues at $ 138 Mn grew by 40.6% Y-o-Y, led by increase in Data customer base by 29.4% and traffic by 104.5%. Data ARPU increased to $ 3.4 from $ 3.1 in the corresponding quarter last year. Data revenues contribute to 13.5% of overall Africa revenues vis-à-vis 10.1% in the corresponding quarter last year. Active Airtel Money customer base grew by 59.3% Y-o-Y to 8.4 million. Consolidated EBITDA at Rs 8,265 crore grew by 6.7% Y-o-Y with EBITDA margin expanding by 0.8% to 34.7%, driven by India s margin expansion by 1.6% Y-o-Y. The resultant consolidated EBIT of Rs 4,011 crore represents a Y-o-Y growth of 4.1%, impacted by higher spectrum amortization expense in India post recent auctions. Net interest costs of Rs 1,053 crore have risen from Rs 687 crore in the same quarter last year. Adverse currency movements resulted in forex and derivative losses of Rs 809 crore, significantly higher than Rs 219 crore in the corresponding quarter last year. After accounting for exceptional items (net gains of Rs 756 crore), the Consolidated Net Income growing by 10.1% Y-o-Y to Rs 1,523 crore. The company s consolidated net debt excluding the deferred payment liabilities to the DOT and finance lease obligations is at $ 7,689 Mn. Net Debt to EBITDA ratio (LTM) at 2.11 times in Q2 16. Page 1 of 2

15 Bharti Airtel Limited Media Release October 26, 2015 In a statement, Mr. Gopal Vittal, MD and CEO, India & South Asia, said: Airtel s revenue growth in India has accelerated to 13.3% in Q2 on an underlying basis, the highest in the last 12 quarters. Our smaller businesses home broadband, DTH and our business segment all continue to perform strongly. Mobile data revenues has grown by 60%. With the commercial launch of high speed 4G services across 334 towns and roll-out of 3G services in our gap circles, we are now best positioned in the industry to leverage the fast growing data market. On the regulatory front, we welcome the guidelines issued by DOT on spectrum sharing and trading. In a statement, Mr. Christian de Faria, MD and CEO, Africa, said: Airtel Africa performance has improved, with underlying revenue growth of 5.1% in Q2, the highest in the last 4 quarters. Data revenue has grown by 40.6%. Strong demand is being witnessed both in voice and data with our consumption increasing by 19.5% and 104.5% respectively. Consistent net additions have expanded our customer base to more than 80 million with growth of 13.3%. In first half of the year, we have divested tower assets of $ 1.7 billion. Summary of the Consolidated Statement of Income represents consolidated Statement of Income as per International Financial Reporting Standards (IFRS) (Amount in Rs crore, except ratios) Particulars Quarter Ended Y-o-Y Six Months Ended Y-o-Y Sep 2015 Sep 2014 Growth Sep 2015 Sep 2014 Growth Total revenues 23,836 22, % 47,507 45, % EBITDA 8,265 7, % 16,527 15, % EBITDA/ Total revenues 34.7% 33.9% 34.8% 33.9% EBIT 4,011 3, % 8,227 7, % EBIT/ Total revenues 16.8% 16.9% 17.3% 16.5% Profit before tax 2,303 2, % 4,804 5, % Net Income 1,523 1, % 3,077 2, % Operating free cash flow 3,231 4, % 7,501 7, % Customer Base Q-o-Q Particulars Unit Sep 2015 Jun 2015 Sep 2014 Growth (Figures in nos, except ratios) Y-o-Y Growth Mobile Services 000's 325, , % 290, % India 000's 235, , % 211, % South Asia 000's 9,852 9, % 7, % Africa 000's 80,835 78, % 71, % Telemedia Services 000's 3,523 3, % 3, % Digital TV Services 000's 10,576 10, % 9, % Total 000's 339, , % 303, % About Bharti Airtel Limited Bharti Airtel Limited is a leading global telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 3 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G, 4G wireless services and mobile commerce. Bharti Airtel had over 339 million customers across its operations at the end of September To know more please visit, Disclaimer: [This communication does not constitute an offer of securities for sale in the United States. Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus and will contain detailed information about the Company and its management, as well as financial statements.] Page 2 of 2