Bharti's prospects in its main market in India, the world's second-biggest and fastest-growing by mobile customers, have improved after call prices steadied last year following a vicious price war that led to sharp drops.
Companies including Bharti have recently started rolling out third-generation (3G) networks and are eyeing a pickup in premium data services to boost margins after they spent a total $15 billion at auctions last year to buy costly radio spectrum.
But Africa continues to weigh on Bharti's earnings. It acquired the loss-making mobile operations of Kuwait's Zain in 15 countries last June in a $9 billion deal and became the world's fifth-biggest mobile carrier by subscribers.
"In the short-term, Bharti's earnings will continue to be weighed down by losses in African operations as well as interest payments on loans it had taken," said K.K. Mital, head of portfolio management at Globe Capital.
"An improvement in the company's African operations will be key for its earnings prospects."
The company said Africa-related overall loss was at 4.16 billion rupees in the March quarter. Bharti expects to grow margins in Africa by bringing costs down but is still facing high cost structure in the region, said Manoj Kohli, Bharti Airtel's CEO for international operations.
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