INSUBCONTINENT EXCLUSIVE:
Leading telecom player Bharti Airtel is poised to announce its financial results today
There are expectations that organic revenue and earnings of telecom players may stay under pressure owing to continued downtrading of
pre-paid customers, partial impact of Jio Phone Monsoon Hungama scheme and seasonality impact may weigh revenues of telecom players
Further hike in diesel prices and aggressive BTS rollout could put pressure on network costs whereas rupee depreciation will lead to
increase in finance costs
Brokerage firm Edelweiss Securities believes that Bharti Airtel may report a net loss of Rs 1,466.80 crore for the quarter ended September
as against net profit of Rs 343 crore in the same quarter last year
On an organic basis, revenue decline should be around 2.5 per cent QoQ
Subscribers base is expected to shrink by around 4 million QoQ, majorly due to customers opting out of Telenor services
Africa business is expected to remain flat QoQ in dollar terms and grow 4.2 per cent in rupee terms
Consolidated EBITDA margin is expected to decline 220 bps QoQ majorly on account of higher rentals per tower as Vodafone-Idea exited many
home broadband and DTH business," it stated.
HDFC Securities believes that Bharti Airtel, on a consolidated basis, may report 7.5 per cent
YoY fall in revenue and 19 per cent decline in EBITDA
On a QoQ basis, the brokerage house estimated that revenue would be broadly flat and EBITDA may decline 5 per cent
ARPU may decline by 6 per cent QoQ to Rs 98
Voice volume is seen to decline QoQ on account of seasonality
Data is likely to grow though momentum might decline albeit marginally
The brokerage firm sees net loss for Bharti Airtel at Rs 1,090 in Q2 FY19.
