Airtel strengthens its leadership through robust revenue growth

Bharti Airtel announces consolidated IFRS results for the first quarter ended June 30, 2010

Highlights for the First Quarter ended June 30, 2010

• Overall customer base stands at 183.4 million, across 18 Countries

• Total revenues at USD 2,625 million, up by 17.4% Y-o-Y (includes 23 days of Africa operations)

• India & South Asia Mobile business revenues up by USD 109 million over Q4 FY10

• Total minutes on network for the quarter at 206.2 billion; up by 24.2 billion over Q4 FY10 (approximately 2.3

billion minutes a day)
• Consolidated underlying EBITDA margin1 of 36.9%
1 Before acquisition related costs of USD 21 million in Q1 FY11

New Delhi, India, August 11, 2010: Bharti Airtel Limited today announced its audited consolidated IFRS 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 Company has adopted IFRS (International Financial Reporting Standards) for its consolidated results effective April 1, 2010; consequently, the results of Indus Towers Ltd have been proportionately consolidated. Previous period figures have been re-stated to facilitate comparison. 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 consolidated total revenues (including Airtel Africa for 23 days, w.e.f June 8, 2010) for the quarter ended June

30, 2010 of USD 2,625 million grew by 17.4% Y-o-Y. India & South Asia total revenues stood at USD 2,419 million,

a growth of 8.2% Y-o-Y. On a sequential basis, the Mobile business in India & South Asia grew by USD 109 million

over Q4 FY10. Mobile minutes in India grew by 17.6 billion (over Q4 FY10) to 190.4 billion.

Consolidated underlying EBITDA of USD 968 million grew by 5.0% Y-o-Y. Underlying EBITDA margins continued

to be robust at 36.9% after absorbing a conservative provision of USD 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 USD 46 million in

Q1 FY11 (Previous year: gain of USD 60 million). Consequently, net income dropped by 32.0% Y-o-Y to USD 361

million.
During the quarter, the Company acquired the African operations of Zain for an enterprise value of USD 10.7

billion. The 3G licences in 13 circles and BWA licences in 4 circles in India were acquired at a total cost of USD

3,350 million. Capex spend during the quarter was restricted to USD 394 million due to delays in security

clearances for equipment imports. The Consolidated Free Cash Flow in Q1 FY11 was an all-time high of USD 786

million. The Net Debt - Equity ratio stood at 1.38, and the Net Debt – EBITDA ratio at 2.87.

In a statement, 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 lifeclass 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.”

company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for

enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best

performing technology companies in the world by BusinessWeek. Bharti Airtel had over 183 million customers across its

operations at the end of June 2010. To know more visit www.airtel.in

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