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uzimalife
#1 Posted : Wednesday, August 08, 2012 10:39:15 AM
Rank: New-farer


Joined: 6/22/2011
Posts: 30
June 2012

762Cr/$138m (2011-12152Cr/$220m)

AirTel Africa operations

Subscribers 55.9M (Net additions 2.7m QoQ)

Rev ($) $1.06b ( $979m-9% QoQ growth)

EBIDA $275M ($252 QoQ)[/center]

EBIDA/TOTAL rev 25.8%

Capex $119m

ARPU (India) $3.4

ARPU (Africa) $6.5

Netincome/(Loss) (6693 Rs mn/$122m)
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Jamani
#2 Posted : Wednesday, August 08, 2012 10:51:01 AM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
@ uzimalife could you kindly extract/highlight the profits for operation in kenya
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mkeiyd
#3 Posted : Wednesday, August 08, 2012 10:57:36 AM
Rank: Veteran


Joined: 3/26/2012
Posts: 1,182
Africa has almost double India's ARPU?
The figures for Kenya operations i would expect to be deep in the red.
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uzimalife
#4 Posted : Wednesday, August 08, 2012 11:33:43 AM
Rank: New-farer


Joined: 6/22/2011
Posts: 30
@Jamani@Mkeiyd Results are based on regions ( India is considered as a region)hence no specific country breakdown

However:

Monthly Churn: 5.1%

Total revenue/Minutes on Network: $5.4

Voice (Africa) QoQ

Minutes on the Network: 19.7mil

Voice ARPU: $5.7

Voice Usage per Customer: 120 Min

Voice realization per minute: 4.7c

Non voice Revenue: 12% of mobile Revenues

Coverage and Network Trends- Africa

Sites on Network: 15439

Of which no of 3G Sites: 4787
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Jamani
#5 Posted : Wednesday, August 08, 2012 11:36:08 AM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
Africa almost double India's ARPU and i remember the comment from Airtel COO(CEO) Kenya that the problem with africa is that if you reduce calling rates people go to buy food... trying to justify why their strategy wasnt working in Africa as was in India...
Africa has proved you wrong sir, your results clearly indicates who goes to buy food.
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VituVingiSana
#6 Posted : Wednesday, August 08, 2012 12:03:06 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,129
Location: Nairobi
Jamani wrote:
Africa almost double India's ARPU and i remember the comment from Airtel COO(CEO) Kenya that the problem with africa is that if you reduce calling rates people go to buy food... trying to justify why their strategy wasnt working in Africa as was in India...
Africa has proved you wrong sir, your results clearly indicates who goes to buy food.
Actually, ARPU is a Revenue Measure. When more minutes are used (in a smaller footprint) then it's cheaper to 'produce' them.

India is much smaller than 'Africa' [let's stick to Sub-Saharan Africa where Airtel has its operations] yet the population/users are almost equal or lower in SSA. The cost of providing service to remote areas is higher thus (potentially the amount charged) thus ARPU means little without considering the cost of the service.

A Base Station in CBD is much busier (could be lower ARPU - more users with shorter calls) than one in Wajir even though the cost of the Wajir station [diesel powered, installation costs, maintenance costs] are much higher.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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uzimalife
#7 Posted : Wednesday, August 08, 2012 12:22:41 PM
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Joined: 6/22/2011
Posts: 30
@Jamani: I agree. Just to add; Africa region weighed down on the company's results but is still attractive. I guess they have to keep on spending on infrastructure and fees
Cumulatively, they have spent more than $13b on the Africa operations showing their resolve
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Jamani
#8 Posted : Wednesday, August 08, 2012 12:26:01 PM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
VituVingiSana wrote:
Jamani wrote:
Africa almost double India's ARPU and i remember the comment from Airtel COO(CEO) Kenya that the problem with africa is that if you reduce calling rates people go to buy food... trying to justify why their strategy wasnt working in Africa as was in India...
Africa has proved you wrong sir, your results clearly indicates who goes to buy food.
Actually, ARPU is a Revenue Measure. When more minutes are used (in a smaller footprint) then it's cheaper to 'produce' them.

India is much smaller than 'Africa' [let's stick to Sub-Saharan Africa where Airtel has its operations] yet the population/users are almost equal or lower in SSA. The cost of providing service to remote areas is higher thus (potentially the amount charged) thus ARPU means little without considering the cost of the service.

A Base Station in CBD is much busier (could be lower ARPU - more users with shorter calls) than one in Wajir even though the cost of the Wajir station [diesel powered, installation costs, maintenance costs] are much higher.


its a measure related to revenue, the average usage... when the Airtel Kenya COO was making that comment he made it in relation to ARPU not in relation to investments or the cost of it.
And for a fact, the ARPU in Africa at the time was low compared to India. And talking of india most of their sites are also running on generators.
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VituVingiSana
#9 Posted : Wednesday, August 08, 2012 12:31:04 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,129
Location: Nairobi
Jamani wrote:
VituVingiSana wrote:
Jamani wrote:
Africa almost double India's ARPU and i remember the comment from Airtel COO(CEO) Kenya that the problem with africa is that if you reduce calling rates people go to buy food... trying to justify why their strategy wasnt working in Africa as was in India...
Africa has proved you wrong sir, your results clearly indicates who goes to buy food.
Actually, ARPU is a Revenue Measure. When more minutes are used (in a smaller footprint) then it's cheaper to 'produce' them.

India is much smaller than 'Africa' [let's stick to Sub-Saharan Africa where Airtel has its operations] yet the population/users are almost equal or lower in SSA. The cost of providing service to remote areas is higher thus (potentially the amount charged) thus ARPU means little without considering the cost of the service.

A Base Station in CBD is much busier (could be lower ARPU - more users with shorter calls) than one in Wajir even though the cost of the Wajir station [diesel powered, installation costs, maintenance costs] are much higher.


its a measure related to revenue, the average usage... when the Airtel Kenya COO was making that comment he made it in relation to ARPU not in relation to investments or the cost of it.
And for a fact, the ARPU in Africa at the time was low compared to India. And talking of india most of their sites are also running of generators.
I can't speak of Airtel's base stations in India. No idea. I can talk of some base stations in Kenya. Even in UG (rural areas). ARPU is one of many measures but the bottomline is always profits.

Look at KK 2012 vs 2007. Sales in KES have jumped huge but not the volumes coz the $ price of fuel has increased & KES weakened. The revenues (sales) - per station - looked at in isolation is misleading.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Jamani
#10 Posted : Wednesday, August 08, 2012 12:37:32 PM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
True that, though i go back to the statement made by Airtel Kenya COO, it was based on ARPU not investments or the cost of it. He was complaining that despite his lowered tariffs the ARPU was still low compared to india and people in Africa go to buy food instead of make calls when tariffs are reduced.
The results on the same prove him wrong......
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uzimalife
#11 Posted : Wednesday, August 08, 2012 1:14:20 PM
Rank: New-farer


Joined: 6/22/2011
Posts: 30
VituVingiSana wrote:
Jamani wrote:
VituVingiSana wrote:
Jamani wrote:
Africa almost double India's ARPU and i remember the comment from Airtel COO(CEO) Kenya that the problem with africa is that if you reduce calling rates people go to buy food... trying to justify why their strategy wasnt working in Africa as was in India...
Africa has proved you wrong sir, your results clearly indicates who goes to buy food.
Actually, ARPU is a Revenue Measure. When more minutes are used (in a smaller footprint) then it's cheaper to 'produce' them.

India is much smaller than 'Africa' [let's stick to Sub-Saharan Africa where Airtel has its operations] yet the population/users are almost equal or lower in SSA. The cost of providing service to remote areas is higher thus (potentially the amount charged) thus ARPU means little without considering the cost of the service.

A Base Station in CBD is much busier (could be lower ARPU - more users with shorter calls) than one in Wajir even though the cost of the Wajir station [diesel powered, installation costs, maintenance costs] are much higher.


its a measure related to revenue, the average usage... when the Airtel Kenya COO was making that comment he made it in relation to ARPU not in relation to investments or the cost of it.
And for a fact, the ARPU in Africa at the time was low compared to India. And talking of india most of their sites are also running of generators.
I can't speak of Airtel's base stations in India. No idea. I can talk of some base stations in Kenya. Even in UG (rural areas). ARPU is one of many measures but the bottomline is always profits.

Look at KK 2012 vs 2007. Sales in KES have jumped huge but not the volumes coz the $ price of fuel has increased & KES weakened. The revenues (sales) - per station - looked at in isolation is misleading.

@VituVingiSana So the bottom line is what we should look @? Think
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mkeiyd
#12 Posted : Wednesday, August 08, 2012 2:41:24 PM
Rank: Veteran


Joined: 3/26/2012
Posts: 1,182
@uzimalife, I think you look at the bottom line and the direction of costs/revenue going forward.
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hisah
#13 Posted : Sunday, August 12, 2012 8:18:59 AM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
mkeiyd wrote:
Africa has almost double India's ARPU?
The figures for Kenya operations i would expect to be deep in the red.

Kenya and Nigeria operations are in the red as per The East African - www.theeastafrican.co.ke...0/-/kdvbaxz/-/index.html


Goldman as well as many other IBs downgraded Bharti after these results. Bharti shares have tanked to the lowest levels last seen on Oct 2006. Btw BSE index is up 14% ytd while Bharti is 25% down ytd. Stark underperformance this stock...

http://economictimes.ind...rticleshow/15428765.cms




$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Cde Monomotapa
#14 Posted : Sunday, August 12, 2012 12:24:35 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
In a brainy/witty/shrewdy country like Kenya, they should allow Kenyans manage & run the show.
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Jamani
#15 Posted : Sunday, August 12, 2012 12:33:34 PM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
@Cde they cant, they have bought in Malubari people from Kelera who are running the show. You should know their culture how they think, work and their perception towards the locals..
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