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
Top 10 risks worth considering when expanding into AfricaCompanies planning to expand across Africa must make a concerted effort to understand the risks, and not assume they “know” Africa, says ContinuitySA. Read More
Shop Soko connects Kenyan artisans to lucrative international marketsA new e-commerce platform, Shop Soko, is helping Kenyans access a lucrative international market. Read More
Ricoh SA begins rollout of new services-led strategy, Africa expansionJacques van Wyk has been appointed Ricoh SA’s new COO to drive the expanded strategy that will enable the business to become a services-led organisation and see its expansion into the rest of Africa. Read More
Stock Exchange launches news serviceA news service by the name of X-News has become the latest product coming from the local bourse, the Botswana Stock Exchange (BSE) recently. Read More
Telkom forays into Botswana through acquisitionSouth African telecommunications giant Telkom is making inroads into the Botswana market through the acquisition of an ICT company, Business Connexion (BCX). Read More
Umati Capital secures $10m finance line from ApexPeakKenyan financial tech startup Umati Capital has agreed a deal with ApexPeak securing its first line of wholesale capital. Read More
Kirusa acquires Ghana’s Saya MobileVoice messaging and social media apps firm Kirusa has acquired Ghana-based Saya Mobile, which provides instant messaging apps geared specifically for African consumers. Read More
SAP to invest up to $500m in African innovationSAP has announced a long-term commitment to regional expansion, sustainable growth and skills development of up to 10,000 IT consultants in Africa. Read More
Microsoft, UNDP partner to support Ethiopian entrepreneursMicrosoft has signed a collaborative agreement with the United Nations Development Programme (UNDP), under which Microsoft will provide training and mentorship services to 200,000 Ethiopian entrepreneurs. Read More
Location based services market to reach $43.3bn by 2019A new report from Juniper Research forecasts that the Mobile Context and Location Services market will reach $43.3bn in revenue by 2019. Read More
FEATURED STORYNigeria’s VAS providers ‘on brink of extinction’
WASPAN chief Simon Aderinlola says unless the regulator intervenes, WASPAN may not have anything left to regulate. Kokumo Goodie reports.
BEST READ NEWS
IN DEPTHKenya rolls out e-extension to improve agriculture
In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.
COMPANY NEWSSage CRM is Umsinsi Health Care’s engine for growth
Umsinsi Health Care, a distributor of medical products, has enhanced customer service and streamlined its business processes by implementing Sage CRM as its customer relationship management platform.VMware delivers new innovations for the open, agile, secure software-defined data centre
Industry’s most complete software-defined data centre portfolio helps customers slash CAPEX by nearly 50 percent and improve IT productivity by 100 percent or more.Alex families receive Schneider Electric solar lamps
Schneider Electric, a specialist in energy management, has partnered with Rays of Hope, a non-profit organisation, providing 28 schoolchildren and their families in the northern Johannesburg township of ...