Airtel, BT, Sprint, Vodafone and Zayo post latest financial results
Capacity rounds up 5 of the latest financial results from across the telco sector.
Bharti Airtel reported a net loss a Rs 1,080 crore almost double the Rs 600 crore expected for the quarter. Despite the loss, the company also reported revenues for Bharti Airtel India up 7% year-on-year. In addition, consolidated revenues were up 8.5% at Rs 21,947 crore. Additionally, consolidated EBITDA stood at Rs 9,350 crore and consolidated EBITDA margin was up by 42.6%.
Marred by the impact of the UK’s decision to limit Huawei’s participation in its 5G networks, BT reported lower than expected results for its third quarter.
The company reported revenues of £17,246 million and adjusted revenue £of 17,192 million, both down 2% which the company puts down to ‘ongoing headwinds from regulation, competition and legacy product declines.’
Adjusted EBITDA came in at £5,900 million, down 3%, due to the fall in revenue, higher spectrum fees, investment in customer experience and higher operating costs in Openreach.
“BT delivered results slightly below our expectations for the third quarter of the year, but we remain on track to meet our outlook for the full year,” said Philip Jansen, CEO of BT. ““Underpinning the ongoing development of market-leading propositions, we continue to invest in the best converged network. We welcomed the direction of Ofcom’s recent consultation, which is an important step forward towards a widely shared ambition to invest in fibre across the whole of the UK. We’re also investing in 5G, making it available in over 50 locations, with the first customers enjoying a great experience.”
Sprint recorded a net loss of $120 million, an operating income of $66 million, and adjusted EBITDA of $2.5 billion. Wireless service revenue topped $5.2 billion and made postpaid net additions of 494,000.
“I continue to be impressed by the commitment of Sprint employees to deliver results during this period of uncertainty,” said Sprint CEO Michel Combes. “As we await a decision in the state attorneys general lawsuit, I continue to believe the merger with T-Mobile is the best way to deliver the benefits of competition to American consumers.”
For Q3 Vodafone reported group revenues up 6.8% totalling €11.750 million for the quarter. Of that, Europe made up €8.970 million with Rest of the World making up the remaining €2.470 million.
The company also reported organic service revenue growth in Q3, up 0.8% from 0.7% in Q2. European mobile contract churn fell year-on-year with the addition of 0.5 million mobile contract net additions. The company is on track for year Adjusted EBITDA of between €14.8-15.0 billion.
Commenting on the results, group CEO Nick Read said: “I am pleased with the pace at which we have executed our commercial and strategic priorities, which has allowed us to maintain our momentum in the quarter. Competition in Europe remains challenging, primarily in the value segment, however we continued to improve customer loyalty and to grow in broadband, and we achieved good growth in Africa. We expect a further gradual improvement in service revenue growth in Q4, led by Europe.
We have recently announced the proposed sale of our stake in Vodafone Egypt, which simplifies the Group into two scaled regional platforms – Europe and sub-Saharan Africa – and reduces our net debt. We have also appointed the senior management team for our European TowerCo, and we are preparing for a potential IPO in early 2021.”
Zayo reported revenues of $653.7 million for Q2 of 2019 up from 638.6 million in the previous quarter, an increase of $43.5 million. Net income came in at $61.4 million with an adjusted EBITDA of $328.5 million. Net income sat at $61.4 million compared to $17.9 million in the previous quarter.
Looking at the annual picture, revenue was up 2% with revenues reaching $639.1 million in 2018. adjusted EBITDA also increased by 2% year-on-year reaching $328.5 million from $321.2 million. Net income grew from $30.2 in 2018 to $61.4 million in 2019.
The company also confirmed that its merger with EQT continues to progress well and is due to close by the end of the first calendar quarter or early second calendar of 2020.