“I would say in 2010 our decision to go to Africa was a bit rushed, and that has taken 6-7-8 years and a lot of resources and my personal time to fix,” Sunil Mittal, chairman of Bharti Airtel said at an event in Delhi in December 2017. Airtel entered the continent in 2010 with a $10.7 billion acquisition of Zain Telecom in 18 countries. But it finally looks like that the bet has paid off. Its Africa operations, which posted a net income of Rs 698.7 crore ($105.02 million) in the March 2018 quarter, appears to be the only piece which is holding up Airtel’s profitability as a whole.
I bless the rains down in Africa
Africa is Airtel’s silver lining
For years, Airtel’s Africa operations were weighing down its balance sheet. Today, the tables have turned, with India looking Jio’s way. Suddenly, Africa seems like a masterstroke of foresight
India's largest telco posted a 77% decline in profit this quarter, barely managing to eke out a 0.4% net profit margin
Airtel is facing a perfect storm of a ruthless competitor, regulatory hurdles and an exponential consumer adoption of 4G
It spent around $3.5 billion in capex this year and that's only going to go up to compete with Jio
Its best poised business seems to be the one almost everyone berated it for acquiring - Africa operations