The retail consumption level off – Airtel reports higher EBITDA

Global Airtel circa 2009

With Africa delivering a billion dollars in revenue, Airtel went to becoming a $4 bln quarter company with relative ease. the industry pressures however have started showing on the leader domestically, losing ARPUs to 192 per subscriber and minutes down 1.5% to 442 ( for the Indian Market, where revenues are $3 bln and over) The Profit of $350 mln continues to destroy corporate brand expectations for the company, where the management expects a market share downtick from cannibalisation of its share by the plethora of players whose bill plans have had to be competitively adopted by Airtel and Vodafone also.

Apart from the growth in Africa, the management’s predilection for confusing the corporate brand with its market presence may continue to be its downfall, as strategy budgets are honed to operationally upend the

Image by bhautikjoshi via Flickr

current equip,ment in its 17 new business zones in Africa EBITDA has grown from 31.5% to 33% and they are good for the long run. Airtel has 40 million subscribers in the Indian Continent and 17 million in 16 countries across Africa

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