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Mumbai: Growth at Bharti Airtel’s home business that operates on the concept of convergence and its enterprise business is backing up growth in its mobility business.

The home segment, which contributed 4% to the overall revenue, grew at 45.8% year on year, and 10% quarter on quarter.

In its financial report for the quarter ended March 31, the telco reported home service revenues of Rs 876.2 crore.

Airtel Business revenue in turn stood at Rs 4179.8 crore, up 12.9% y-o-y and 1.8% q-o-y. Its contribution to the overall revenue stood at 19% for the quarter.

“Subscriber net adds remain robust at ~323k to reach 4.48mn subs (+46% y-y), driven by the acceleration in local cable operator (LCO) tie-ups to 761 cities. Revenue was +10% q-o-q as lower subscriber net adds was offset by higher implied ARPU at Rs 676,” Nomura said in its report.

Airtel CEO Gopal Vittal reiterated during the telco’s earnings call that the home business continues to be focus area for the company, and “will never be deprived of capex.”

“Our innovation through the digital Local Cable operator partnership model has enabled us to be now present in 847 cities, an addition of 175 cities this quarter,” he added. He estimates the category to grow to 40 million homes by 2025.

Explaining the importance of this segment, Vittal added that it “typically sees low churn, and is poised for acceleration.”

’s churn for this segment was sub 1% and has been flat over the past few quarters, he added.

Other non-mobility segments that contributed to growth include Airtel Business, the company’s B2B services division, and Digital TV services, Airtel’s direct-to-home (DTH) business.

The company’s enterprise business which houses connectivity and digital services like ad solutions, and SaaS is the biggest contributor to the overall revenue after the mobile business.

Elaborating on the growth and potential for the enterprise business, Vittal said, “Net of voice which is declining this business is growing all other segments either in high teens or even faster.” The portfolio comprises of connectivity, CPaas, IoT, Cyber Security, Cloud and Data Centres.

“Our entire go to market organization has been re tooled so as to enable them to go both Wide (To expand our presence in accounts where our market share is low) and Deep (To accelerate penetration of those parts of our portfolio where our customers have still not chosen us),” he added.

“We see room for the market to take a more optimistic view on the emerging enterprise opportunity, which we think remains underappreciated, potentially driving upgrades down the line as execution picks up, as well as delivering on its digital aspirations which could additionally aid valuations. Execution in other business segments, meanwhile, remains solid,” said Citi Research in its report.


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