According to a report by ICICI Securities, Bharti Airtel and Vodafone Idea (VIL) are likely to see a drop in SIM consumption due to tariff hike and a decline in users due to Kovid-19.
“We estimate Bharti and VIL to have a subscriber decline of 3 million and 15 million respectively in the fourth quarter of fiscal year 2020. However, the average revenue per user (ARPU) for Bharti and VIL will be strong growth of 11.6 percent. The brokerage firm said in a report that 12 per cent quarter-on-quarter (QoQ) is at ₹ 150 and 122 122, respectively.
“ARPU will benefit from tariff hike and migration from 2G to 4G, which is ARPU. We expect there will be an additional addition of 4G sub-net with 7 to 5 million and 5 million for Bharti and VIL respectively. Bharti Airtel’s consolidated EBITDA is expected to increase 10.9 percent QoQ to Rs 300 10,300 crore. The company’s revenue is expected to grow by 10.2 percent QoQ (13.5 percent YoY) to Rs 17,500 crore, led mostly by the mobile segment and EBITDA’s 16.5 percent QoQ to 7,600 crore.
The EBITDA margin was 234 basis points QoQ at 43.4 percent.
Bharti’s Africa and US revenues and EBITDA are expected to reduce 1.5 percent QoQ to $ 870 million and 2.4 percent QoQ to $ 385 million, ca.
1,640 increase in tenure of Bharti Infratel, but notice to take out equipment by tenants from ₹ 2,250 crore to sink 1.4 percent QoQ (6.8 percent YoY) in rental revenue to ₹ 2,250 crore. EBITDA is expected to fall by 0.7 per cent to Rs 1,860 crore.