On May 19, Bharti Airtel shares price rises over 10 percent to a record high as customers upgraded their data and calling plans and the telecom operator raised mobile tariffs, helping boost average revenue per user. The company already reported a net loss of Rs 5,237 crore for the quarter ended on March 20. It posted a consolidated loss of Rs 1,035.3 crore in the December quarter and a profit of Rs 107.2 crore in the March quarter in 2019.
During the quarter ended March 31, the company’s average revenue per user rose 25 percent to Rs 154 at its mobile services business in the country during the quarter ended on March 31. “Bharti Airtel’s strong data subscriber additions despite sharp tariff hikes reflects consumer acceptance of higher tariffs,” Jefferies said in a note.
“Moreover, its ability to add data subscribers should also support market share gains.”
According to Airtel, 12.5 million 4G subscribers were added in the March quarter. Telecom companies in the country raised calling and data plan prices in the last few months after the Supreme Court upheld a demand by the telecoms department that wireless carriers pay Rs 92,000 crore in overdue levies and interest.
On Monday, New-Delhi based Airtel said it set aside Rs 5642 crore for one-time spectrum charges compared with a profit of Rs 107 crore a year earlier. However, the total revenue rose 15 percent to Rs 23,723. During the last week of March, users were confined to their homes due to a nationwide lockdown to contain the spread of the coronavirus.
On late Monday, Chief executive officer Gopal Vittal said in a statement, “We continue to witness strong data traffic growth of about 74.1% year-on-year.” Rival Reliance Jio Infocomm, controlled by billionaire Mukesh Ambani, reported a nearly nearly three-fold rise in March quarter profit.