[quote=BHARTI AIRTEL]
Bharti, controlled by billionaire Chairman Sunil Mittal, fell in Mumbai trading as intensifying competition with Vodafone Group Plc and Reliance Communications Ltd. drove down monthly phone bills in India by 20 percent. Bharti is expanding into countries including Kenya with the $9 billion purchase of the African assets of Kuwait’s Mobile Telecommunications Co. to offset slowing growth at home.

http://bit.ly/ctuKQ6[/quote]

Actually..competitors in its india market cut their rates and Bharti had to follow suit.. the same way safaricom is likely to lose from being forced by competition,chiefly Zain, to cut down call costs.

So if cutting of rates is hurting Bharti's profits, do you think it will hurt Safaricon's profits too?

The signs have all been there. Safcom'c profits will have to fall. Perhaps not in H1 2010-11, but certainly in the next half.

Safaricom [which has only one market] will be hurt especially in the Voice segment

Okay so tricky to decipher Kenya's performance but in general for 16 countries in Africa:
Revenue__$864m
EBITDA___$207m
EBIT______$37m
EBITDA at 23.9%

Loss after tax $(19.2m)
Overall the performance of Africa has declined compared to last year.

Bharti Africa now has 40m customers in Africa. Last year Sep 09, Zain had 41m customers with Kenya contributing 3% customers with 2% revenues to total cake.

I would be shocked if Zain Kenya was making amy profit. I speculate they've managed to reverse the trend of losing customers (-14% growth) to remain at level of just over 2m subscribers.

Given that bob collymore has indicated the Govt might lose 4-5b in taxes from safaricom this year we can hypothetically conclude safaricoms profit will drop by about 6 billion.

http://bit.ly/bGPN2F

Really? Where did they disclose that?

oh!

I thought since you're such a Safcon diehard, maybe Bob tweeted you with this info...

Oh well, birds are good when roasted..

@KulaRaha good questions, but bear in mind that by Dec 2009, Zain Kenya had the worst subscriber growth (-32%) of entire Zain Africa resulting in an impairment in the financials for the group - full year loss at ~$37m as at that time - Ghana and Nigeria had bigger losses in absolute amounts though

Reuters: Africa margins a worry, Bharti Head of Operations http://af.reuters.com/article/t...OE6A900D20101110?sp=true
"But profits from Africa are very low and they may be garnering market share there at the cost of overall profit turnaround."

Twitter: @alykhansatchu
#Bharti intl ops head said no intention of African Mobile Price War That's after #Safaricom won the initial Kenya Skirmish

Make that #Bharti said they may pre-pay $800-900 million of the Africa acquisition debt


Verdict:
Bharti overall has been losing market share in India, now at 20.8 percent compared to 23.4 percent a year ago.
With concerns on Africa strategy, since this whole Kenya deal may be living on "borrowed time"

Bharti Airtel on harakiri mission drop the rates to impossible make everybody suffer , your competitors your shareholders and your self and let mobile industry die

Almost like the Siakago Cop Kill everybody and make everyone suffer

My warning to mobile subscrivers in kenya , let not the rates drop too much already the calls quality is dropping and you can hardly hear anything in calling TZ Zambia Uganda etc


so watch out