Airtel 2012 Annual Report Download - page 52

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BHARTI AIRTEL ANNUAL REPORT 2011-12
A.1.2 Telemedia Services
The Company provides broadband (DSL), data and telephone services (fixed line) in 87 cities with growing focus on various
data solutions (Internet Lease Lines and MPLS) for the Small & Medium Business (SMB) segment. It had 3.3 Mn customers
as at March 31, 2012 of which 1.4 Mn subscribed to its broadband/internet services.
The Company ended the year with non-voice revenues contributing over 50% of the total revenues. During the fiscal 2011-12, the
Company launched online sales as a channel for DSL acquisition and has also doubled the speeds to a minimum speed of 2 Mbps
for all its customers in the top 14 cities and to 1 Mbps in the balance cities with an objective of enhancing customer experience.
Revenues from Telemedia Services – India & South Asia for the financial year ended March 31, 2012 were
` 37,271 Mn and
represented a year on year growth of 3%. During the year gone by, the Company migrated to an integrated business support stack
– Fx (Single window interface for accessing end-to-end customer information) system. There had been few initial adoption
challenges that impacted customer acquisition and bad debts leading to moderated growth in revenues and drop in EBIT.
Key financial results for the year ended March 31, 2012
Particulars Financial Year Y-o-Y Growth
2011-12 2010-11
Customers (Mn) 3.3 3.3 -1%
Gross Revenues (` Mn) 37,271 36,324 3%
EBIT (` Mn) 7,149 8,334 -14%
A.1.3 Digital TV Services
The Company served a customer base of 7.2 Mn on its Direct-To-Home (DTH) platform at end of March 31, 2012 adding
1.6 Mn customers during the year, despite stiff competition and aggressive pricing pressure.
The Company also offers High Definition (HD) Set Top Boxes and Digital TV Recorders with 3D capabilities delivering superior
customer experience. The Company currently offers a total of 310 channels including 14 HD channels and 7 interactive
services. Airtel is the first company in India that provides real integration of all the three screens viz. TV, Mobile and
Computers enabling our customers’ record their favorite TV programs through mobile and web. The Company continues to
expand the distribution, going beyond 9,000 towns and deep into rural India.
During the year, the Company moved from a 2-day grace period to a 0 grace concept primarily to keep a check on suspension.
Additionally, with an objective to address the issue of rotational churn and the corresponding cash loss due to subsidized
set top boxes, the Company reduced Free Preview Period. While this initiative impacted the gross additions for the industry
per say, it enabled the Company to stabilize churn over the last 3 quarters in financial year 2012.
Revenues from Digital TV services for the financial year ended March 31, 2012 were
` 12,960 Mn and represented a year on year
growth of 67%. This was the first full year of positive EBITDA for Digital TV services. The growing customer base and increase in
churn has resulted in the increase in EBIT losses from ` 5,181 Mn in Financial year 2011 to ` 7,198 Mn in Financial year 2012.
Key financial results for the year ended March 31, 2012
Particulars Financial Year Y-o-Y Growth
2011-12 2010-11
Customers (Mn) 7.2 5.7 28%
Gross Revenues (` Mn) 12,960 7,760 67%
EBIT (` Mn) (7,198) (5,181) -39%
A.2 B2B Services
Airtel Enterprise Services recently changed its identity to airtel business. airtel business offers wide portfolio of services
that include voice, data, network integration, data center & managed services, enterprise mobile applications and digital