Contributions from regional associates, it stated, have been additionally “negatively impacted by a strong Singapore dollar” in the course of the fiscal second quarter.
Singtel owns a shade over 39% of Bharti Airtel.
The main south-east Asian Telecom provider reported a 77% on-year fall in internet revenue in the course of the July-September interval at S$667 million. The firm’s income was flat at almost S$4.27 billion.
Singtel Group’s “share of pre-tax operating results (before finance costs & fair value adjustments) from India and South Asia turned into a S$35 million loss, compared with a S$191 million profit” in the year-ago interval, hit by a 9% depreciation of the rupee versus the Singapore greenback and after accounting for (Airtel’s) greater depreciation & amortisation costs on greater 4G capex spends.
Singtel stated in the course of the September quarter, “Airtel continued to be adversely impacted by mandatory reductions in domestic and international mobile termination rates,” including that “its performance was further aggravated by sustained pricing pressure from a new operator (read: Jio) intent on aggressive market share expansion”.
Bharti Airtel’s India losses worsened in the September quarter hit by excessive prices, and the corporate additionally misplaced thousands and thousands of shoppers amid its persevering with value warfare with Reliance Jio. The firm although reported a Rs 119 crore internet revenue on a consolidated foundation, helped by distinctive positive factors.
But the group’s share of Airtel Africa’s pre-tax working revenue (earlier than finance prices and honest worth changes) grew 52% on-year to $S$99 million, Singtel stated.
“Strong performances in the Phillippines and Airtel Africa mitigated lower contributions from Airtel in India and Telekomsel in Indonesia,” the Singaporean Telecom provider stated in an official assertion on Thursday.
Last month, Singtel along with 5 different international traders, together with Warburg Pincus, Temasek and SoftBank, invested $1.25 billion (Rs 9,200 crore) in Bharti Airtel’s Africa arm. This was a part of a two-stage Airtel fund-raising train to scale back the Sunil Mittal-led telco’s consolidated debt and likewise unencumber money to battle Reliance Jio in its predominant India market. The second half might be an preliminary public supply of Airtel Africa by way of which the corporate is more likely to increase an analogous sum by May-June subsequent yr.
The Singtel Group’s share of the Airtel Group’s post-tax revenue although was “down to S$5 million from S$27 million in the previous corresponding quarter, after including deferred tax credits mainly from its direct-to-home (DTH) business”.