Airtel 2014 Annual Report Download - page 91

Statutory ReportsCorporate Overview Financial Statements
Bharti Airtel Limited
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Airtel joined hands with Amazon Web Services to offer
private network solutions for its global enterprise
customers. The partnership will help Airtel’s customers
to leverage the powerful and dedicated AWS network at
reduced network costs to experience increased bandwidth
and consistent connectivity.
Signed an inter-provider connectivity agreement with
Orange Business Services to enable inter-country video
conferencing facility to enterprise customers in respective
countries of operation.
Applied for a Payments Bank licence, in collaboration
with Kotak Mahindra Bank to be a partner in the national
mission of financial inclusion.
Awards and Recognition
Won top honours at the prestigious 2014 Frost & Sullivan
India Information & Communications Technology (ICT)
Awards. Airtel won three awards: Enterprise Telecom
Service Provider of the Year – Large Enterprise Segment,
Enterprise Telecom Service Provider of the Year - SMB
(Corporate) Segment, and Enterprise 3G Service Provider
of the Year under the ‘Enterprise Telecom Services’
category for its exemplary growth and performance.
Won the ‘Enterprise Mobile App 2014’ award for Airtel
mGovernance solution and ‘Unified Communication
Solution’ award for Biznet video solution at the Aegis
Graham Bell Awards – the biggest innovation award in
the field of telecom, internet, media and entertainment
(TIME).
Passive Infrastructure Services
Overview
Bharti Infratel Limited, a subsidiary of Bharti Airtel, provides
passive infrastructure services on non-discriminatory basis
to all telecom operators in India. Bharti Infratel deploys, owns
and manages telecom towers and communication structures
in 11 circles of India. It also holds 42% share in Indus Towers
(a joint venture between Bharti Infratel, Vodafone and Idea
Cellular). Indus Towers operates in 15 circles (four common
circles with Bharti Infratel, 11 circles on exclusive basis).
(` Millions)
Particulars FY 2014-15 FY 2013-14 Y-o-Y
Growth
Gross Revenues 54,282 51,087 6%
EBIT 14,462 11,151 30%
The Company enjoys nationwide presence with operations in
India’s all 22 telecommunications circles.
As on March 31, 2015, Bharti Infratel owned and operated
37,196 towers in 11 telecommunications circles, while Indus
Towers operated 115,942 towers in 15 telecommunication
circles. Bharti Infratel’s towers, including installations in its
42% interest in Indus Towers, comprised an economic interest
in the equivalent of 85,892 towers in India, as on March 31,
2015. Bharti Infratel is listed on the Indian Stock Exchanges,
NSE and BSE.
Africa
Overview
The year saw sharp decline in crude oil and other commodity
prices impacting several African economies such as Nigeria,
Tchad, Congo B, Gabon, DRC and Zambia. Africa being a
commodity-heavy continent, witnessed sharp depreciation in
currencies across various countries.
As on March 31, 2015, the Company had 76.3 Mn customers in
Africa across 17 countries as compared to 69.4 Mn customers
in the previous year, an increase of 9.8%. Total minutes on
the network during the year increased by 7.6% to 118.6 Bn,
compared to 110.2 Bn in the previous year. At the end of
the year, 30.4 Mn data customers accounted for 39.8% of
the total customer base, compared to 32.1% in the previous
year. Data traffic increased by 87.4% from 18.9 Bn MBs in the
previous year to 35.3 Bn MBs in the current year, with usage
per customer increasing from 89 MBs to 114 MBs.
Voice realisation per minute, however, declined from 3.30
cents to 2.84 cents for the full year, due to competitive
pressures and currency depreciation. Consequently, overall
ARPU in Africa declined from USD 5.6 to USD 5.1. Total sites
in Africa as on March 31, 2015 were 18,819, of which 10,011
were 3G sites, representing 53% of the total sites.
Full year reported revenues of Africa came in at USD 4,407
Mn (PY: USD 4,491 Mn). In constant currency terms, gross
revenues increased by 6.2%, and net revenues by 7.5%.
Reported EBITDA at USD 1,002 Mn (PY: USD 1,175 Mn) reflected
a margin of 22.7%, a decline from 26.2% in the previous year
due to investments in network and higher marketing spends.
Reported EBIT at USD 193 Mn declined from USD 280 Mn in
the previous year. After accounting for a full year capex of
USD 1,073 Mn (PY: USD 635 Mn), the cash burn in Africa was
USD 71 Mn, compared to operating free cash flow of USD 540
Mn in the previous year.
(` Millions)
Particulars FY 2014-15 FY 2013-14 Y-o-Y
Growth
Gross Revenues 269,070 272,488 (1%)
EBIT 11,781 17,141 (31%)
Wireless Subscribers: Africa (Million)
2012-13 2013-14 2014-15
69.44
76.26
63.72
9.4% CAGR
Management Discussion and Analysis