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Airtel reported strong performance with India wireless revenues were up 5.8% QoQ

ICICIdirect Research 07 Feb 2025 DISCLAIMER

Strong Performance: Airtel reported strong performance with India wireless revenues were up 5.8% QoQ (up 21.4% YoY) at ₹ 26269 crore, driven by strong growth in Average Revenues per User (ARPU), which came at ₹ 245, up 5.3% QoQ and ~18% YoY, higher than Jio which had 4.2% QoQ ARPU growth. It witnessed healthy 4G+5G Net adds of 6.5 mn during the quarter, with 4G/5G data sub base at 277.6 mn. Africa Revenues at ₹ 10163 crore, were up 5.3% QoQ.

ARPU drives Margins expansion and Deleveraging: Consolidated EBITDA came in at ₹ 24597 crore, with margins of 54.5%, down 183 bps QoQ, driven by India wireless margins at 58.8%, up 170 bps QoQ, while Africa Margins at 47% was up 50 bps QoQ. Adjusted PAT at ₹ 5494 crore, was up 40% QoQ. The net debt (excl. lease liabilities) at ₹ 1.34 lakh crore was down by ₹11024 crore QoQ.

Remains superior growth play in the sector: Airtel has reported relatively stronger performance on Indian wireless business front with superior APRU, sustained post-paid/4G subscribers’ addition, and margins expansion.

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