Bharti Airtel Limited has announced a 17.4 per cent growth in its first quarter revenue to N393.75 billion (US$ 2.625 million).

According to a statement announcing its audited consolidated International Financial Reporting Standard (IFRS) compliant results for the first quarter ended June 30, 2010 which includes the results of the newly acquired African operations for 23 days of the quarter, effective June 8, 2010, the first quarter total revenue grew by 17.4 per cent year-on-year (y-o-y), while India & South Asia total revenues stood at US$ 2.419 billion, representing an appreciation of 8.2 per cent Year-on-Year.

It further stated that on a sequential basis, the Mobile business in India & South Asia grew by US$ 109 million over its fourth quarter 2010 financial year.

The Company said that it has adopted IFRS for its consolidated results, effective April 1, 2010; consequently, the results of Indus Towers Limited have been proportionately consolidated, while the previous period figures have been re-stated to facilitate comparison.

The statement that Bharti Airtel is one of the first companies in India to publish consolidated IFRS results as permitted by Clause 41(I)(g) of the Listing Agreement vide SEBI Circular dated April 5, 2010.

The statement reads, “Mobile minutes in India grew by 17.6 billion over fourth quarter 2010 financial year to 190.4 billion, while our consolidated underlying Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$ 968 million grew by five per cent year-on-year.

“Underlying EBITDA margins continued to be robust at 36.9 per cent after absorbing a conservative provision of US$ 22 million for the proposed spectrum cost hike in India; though this has been stayed by the TDSAT.

“The quarter witnessed the adverse impact of the strengthening of the US Dollar (USD) against the Indian Rupee and several African currencies. As a result, derivatives and exchange fluctuations led to a loss of US$ 46 million in first quarter 2011 financial year (previous year: gain of US$ 60 million).

“Consequently, net income dropped by 32.0 per cent year-on-year to US$361million. During the quarter, the Company acquired the African operations of Zain for an enterprise value of US$10.7 billion.

“The 3G licences in 13 circles and BWA licences in 4 circles in India were acquired at a total cost of US$3.350 billion. Capex spend during the quarter was restricted to US$ 394 million due to delays in security clearances for equipment imports.

“The Consolidated Free Cash Flow in first quarter 2011 financial year was an all-time high of US$ 786 million. The Net Debt – Equity ratio stood at 1.38, and the Net Debt – EBITDA ratio at 2.87.”

Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said “The first Quarter witnessed the successful completion of the acquisition of Zain’s mobile operations in 15 African countries.

“We also won valuable 3G and BWA licenses in India, which will transform Airtel into a lifestyle enabler. Our business in India and South Asia got off to a solid start with robust revenue growth and healthy margins. This reaffirms our conviction that leaders emerge stronger in a hyper competitive market.”