During October-December quarter, Bharti Infratel recorded the maximum gross tower and co-location additions as compared to the last five quarters
Bharti Infratel, a leading telecommunication tower company in India, said that the company has reached a settlement with four telecom operators that departed from its cell sites before the expiration of their agreements at a payment of about Rs 3,800 crore.
All the charges have been settled with four operators including Vodafone Idea, Airtel, Telenor and Tata, for all exits that were received till November 30, last year, said Akhil Gupta, Chairman, Bharti Infratel during the company’s earnings call.
The payments include the rental of approximately Rs 1,800 crore and one-time charge of Rs 2,000 crore.
Gupta further said that the operators have collectively paid Bharti Infratel around Rs 55 crore in cash during October-December 2018 quarter and the remaining payment will be made on monthly installments basis with interest spread across a period of three years.
“In line with our accounting policy Rs 550 million accounted for revenue in this quarter. Instalment amounting to approximately Rs 900 million per quarter shall be accounted for from next quarter as the revenues for the next 12 quarters,” he said.
During October-December quarter, Bharti Infratel recorded the maximum gross tower and co-location additions as compared to the last five quarters.
Third quarter revenues
The company posted an increase of 11 per cent in consolidated net profit at Rs 648 crore for the third quarter of 2018-19, it announced on Wednesday.
However, the consolidated revenues of the company have declined marginally to Rs 3,640 crore, whereas EBITDA (earnings before interest, tax, depreciation and amortisation) was Rs 1,513 crore, a decline of 6 per cent over a year-ago period.
Gupta said that after the merger of Vodafone Idea, the phase of consolidation is mostly behind us and so are the co-locations exits that Barti Infratel has been witnessing.
Between Infratel and Indus, there were more than 57,000 exits on a consolidated basis as on December 31, last year, spread across six quarters. The industry will now move forward to higher roll out of network, he added.