Airtel postpones Q2 results as sector stares at massive payouts

Bharti Airtel Ltd said on Tuesday it would need more time to release its September-quarter earnings report, as the Indian company weighs the impact of a recent court ruling asking telecom firms to pay $13 billion in dues to the government. The company’s board, which met earlier in the day, accepted the management’s recommendation to shift the September-quarter results to Nov. 14, the telecom operator said.

Shares of New Delhi-based Airtel, which was expected to release its quarterly numbers later in the day, dropped as much as 4.22 percent, while smaller rival Vodafone Idea Ltd fell 9.52 percent.

Both companies have been steadily losing subscribers to Reliance Industries-owned Jio.

India’s Supreme Court last week upheld a demand by the country’s telecoms department (DoT) that wireless carriers must pay 920 billion rupees ($12.97 billion) in overdue levies and interest.

Airtel said on Tuesday it has approached the DoT to “seek clarity” on the amount it had to pay, adding that it has sought the government’s support to deal with the “adverse outcome” of the court ruling.