Bharti Airtel, Voda likely to post decline in subscribers

Our Bureau Mumbai | Updated on April 03, 2020

File photo   -  Bloomberg

Airtel’s consolidated EBITDA is likely to rise 10.9 per cent QoQ to ₹10,300

Bharti Airtel and Vodafone Idea (VIL) are likely to see a decline in subscriber base due to SIM consolidation from tariff hike and fall in users due to Covid-19, according to a report by ICICI Securities.

“We estimate Bharti and VIL to see subscriber decline of 3 million and 15 million, respectively, in the fourth quarter of financial year 2020. However, average revenue per user (ARPU) for Bharti and VIL will see strong increase of 11.6 per cent and 12 per cent on a quarter-on-quarter (QoQ) basis to ₹150 and ₹122, respectively,” the brokerage firm said in a report.

“ARPU will benefit from tariff hike and migration to 4G from 2G, which is ARPU accretive. We expect 4G subs net addition of 7 million and 5 million for Bharti and VIL, respectively,” it added. Bharti Airtel’s consolidated EBITDA is likely to rise 10.9 per cent QoQ to ₹10,300 crore. The company’s revenue is likely to grow 10.2 per cent QoQ (13.5 per cent YoY) to ₹17,500 crore mostly led by mobile segment and EBITDA growth of 16.5 per cent QoQ to ₹7,600 crore.

EBITDA margin was up 235 basis points QoQ to 43.4 per cent.

Bharti’s Africa and US revenue and EBITDA are likely to dip 1.5 per cent QoQ to $870 million and down 2.4 per cent QoQ to $385 million, on seasonality.

Bharti Infratel’s tenancies to rise by 1,640 but rental revenue to dip 1.4 per cent QoQ (up 6.8 per cent YoY) to ₹2,250 crore on removal of equipment by tenants who have given exit notice. EBITDA is likely to drop 0.7 per cent QoQ to ₹1,860 crore, it added.

Published on April 03, 2020

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