iWorld
India, Africa growth propels Bharti Airtel to strong Q3 FY25
MUMBAI: It is one of the two telco bellwethers in India, the other being Jio. And it appears to be doing very well, thank you going by Bharti Airtel Ltd’s consolidated results for the third quarter ended 31 December 2024. It reported significant growth driven by momentum in India and stable performance in Africa.
Financial Highlights:
* Consolidated revenue rose 19.1 per cent year-on-year (YoY) to Rs 45,129 crore, up 8.8 per cent sequentially.
* Consolidated EBITDA stood at Rs 24,880 crore, marking a 24.1 per cent YoY increase, with a margin of 55.1 per cent.
* EBITDA after lease expenses (EBITDAaL) increased by 26.1 per cent YoY to Rs 21,474 crore, reflecting a margin of 47.6 per cent .
* EBIT grew 33.3 per cent YoY to Rs 13,126 crore, with a margin of 29.1 per cent .
* Net income (before exceptional items) reached Rs 5,514 crore, up 121.3 per cent YoY.
* Capex for the quarter totalled Rs 9,161 crore.
India Business Performance:
* Revenue from India operations rose 24.6 per cent YoY to Rs 34,654 crore.
* Mobile services revenue increased by 21.4 per cent YoY, driven by tariff adjustments, higher smartphone adoption, and portfolio premiumisation.
* Mobile average revenue per user (ARPU) improved to Rs 245, up from Rs 208 in Q3 FY24.
* Mobile data consumption surged by 23.2 per cent YoY, with average consumption per customer at 24.5 GB per month.
* EBITDA rose 32.3 per cent YoY to Rs 19,850 crore, with an EBITDA margin of 57.3 per cent .
* EBITDAaL stood at Rs 17,641 crore, with a margin of 50.9 per cent .
* Capex for India operations was Rs 7,980 crore.
Segment Highlights:
* Homes Business: Revenue grew by 18.7 per cent YoY, with 674,000 net customer additions driven by fibre-to-the-home (FTTH) and fixed wireless access (FWA). The customer base reached 9.2 million.
* Airtel Business: Revenue increased by 8.7 per cent YoY despite global pressures. Emerging digital services, including cloud and security, showed strong growth.
* Digital TV: Revenue declined by 2.9 per cent YoY to Rs 761 crore. The customer base stood at 15.8 million.
* Passive Infrastructure Services: Contributed 5.7 per cent YoY and 5 per cent quarter-on-quarter (QoQ) to India revenue growth.
Africa Operations:
* Revenue in constant currency rose by 21.3 per cent YoY.
* EBITDA margin stood at 47.1 per cent , while EBIT margin was 29.4 per cent .
* Customer base reached 163.1 million.
* Capex for Africa operations totalled Rs 1,181 crore.
Operational Achievements:
* Bharti Airtel rolled out approximately 5,200 towers and 16,300 mobile broadband stations during the quarter.
* The company expanded its fibre network by 47,100 km YoY.
* The anti-spam tool notified 252 million customers and identified over 1 million spammers.
* Airtel’s AI-driven network detected over 7 million spam SMS daily.
* Zee5 was added to the Airtel Xstream Play platform, enhancing content offerings.
Debt Management:
* Net debt to EBITDAaL ratio (excluding lease obligations) stood at 1.56 times.
* The company prepaid Rs 3,626 crore towards deferred spectrum liabilities.
Vice-chairman & managing director Gopal Vittal commented: “We delivered a strong quarter with consolidated revenue of Rs 45,129 crore. Our India mobile business showed robust performance, driven by tariff adjustments and premiumisation. We continued to lead the industry with ARPU growth and added 6.5 million smartphone users. Homes business saw accelerated customer additions, while Airtel Business navigated global headwinds with stability.
“Our strong cash generation and prudent capital allocation allowed us to continue deleveraging and prepay high-cost spectrum dues. Further tariff corrections are necessary to sustain investments and create long-term value for the industry,” he added.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
