Bharti Africa ops slow profits
BUSINESS| Nov. 5, 2011, 8:38 a.m.
Indian operator Bharti Airtel’s latest results show its African operations are still weighing the company down.
Bharti acquired Zain’s African operations last year.
In the company’s results for the quarter ending 30 September, Bharti said it had seen a decline in profitability overall, with many of its African operations still struggling to show a profit.
However, the company is reported to be confident that Africa will see a turnaround and grow to profitability over the next few years. Bharti Airtel CMD Sunil Mittal said Africa’s revenues rose 23% to over USD1 billion during the quarter, with plans afoot to expand operations in the continent.
As at the end of the quarter the company had 48.4 million GSM mobile customers on its network. During the quarter, the company added 2.1 million customers, with an ARPU of USD 7.3 per month. The blended monthly usage per customer, during the quarter was at 128 minutes.
Among the African industry developments highlighted in the report, Bharti Airtel said interconnect rates in Ghana are being reviewed by the regulator, with Bharti in discussion with the Government on driving the interconnect rates lower based on Long Run Incremental Cost (LRIC) study.
In Tanzania, discussions are currently ongoing with the Government and Regulator for implementation of Mobile Number Portability (MNP).
The target given by the Regulator is December 2011. However Operators have requested for a postponement to June 2012.
Meanwhile, in Uganda, Bharti said current interconnect rates are being reviewed; in Burkina Fasodiscussions have commenced for the acquisition of a 3G license.
And in Gabon, aMOU has been signed between the Regulator and Airtel on the granting of a 3G license and the extension of the 2G license to match the duration of the 3G license.
MORE BUSINESS NEWS
Kenyan SACCOS riding on innovation to attract customersAs confidence in mainstream banks remains low due to prohibitive interest rates, customers are embracing Savings and Credit Cooperatives (SACCO) as an alternative. Read More
BITC invites ICT investorsThe Botswana Investment and Trade Centre (BITC) is casting its net wide to appeal to players in the Information Technology sector to invest in the country. Read More
Yudala ‘an unstoppable movement’, says Zinox chiefThe opening of Yudala outlets, combining an online shopping platform with retail stores, has been described as a game-changer in Nigeria. Read More
Travelport, TTS sign reseller agreement for Africa, Middle East and Asia Pacific regionTravelport and TTS have signed a sales and distribution agreement for TTS products in the Africa, Middle East, and Asia Pacific regions. Read More
Airbnb to expand further across AfricaAirbnb, the world’s leading community-driven hospitality company, announced that its CEO, Brian Chesky will attend GES 2015 to meet with entrepreneurs from around the world and explore the sharing economy’s impact and expansion, particularly on the African continent - which represents a huge opportunity for the company. Read More
What African entrepreneurs wantOn the eve of U.S. President Barack Obama’s visit to Kenya for the Global Entrepreneurship Summit, GeoPoll, the Global Entrepreneurship Network, and the U.S. State Department have released a survey of 1,000 business owners throughout sub-Saharan Africa on entrepreneurship in their countries. Read More
ISON eyes 25,000 jobs, $400m in NigeriaISON Group has projected the creation of 25,000 new jobs and $400 million revenue within space of one or two years in Nigeria. Read More
NEC invests in XON to accelerate regional African growthNEC Europe, a wholly owned subsidiary of NEC Corporation, has invested in XON, the sub-Sahara African ICT group, and the two organisations will have an integrated market approach that will combine their local expertise in the region to provide greater sales coverage in the sub-Sahara African market. Read More
Orange, Airtel in talks on acquisitionsOrange and Bharti Airtel International (Netherlands) BV, have entered into an exclusive agreement to explore the possible acquisition by Orange of four Airtel subsidiaries. Read More
Equitel seeks a share of Kenya’s lucrative telco marketEquity Bank’s subsidiary, Finserve Africa, has launched Equitel, a new mobile payment and banking platform for its customers, which officially brings to the fore the convergence between mobile and banking services in Kenya. Read More
FEATURED STORYKenyan SACCOS riding on innovation to attract customers
As confidence in mainstream banks remains low due to prohibitive interest rates, customers are embracing Savings and Credit Cooperatives (SACCO) as an alternative.
BEST READ NEWS
IN DEPTHAs curtain falls on MDGs, what next?
Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.