Bharti Airtel is the analyst’s favorite in the Indian telecom sector. The telco continued to show signs of growth in both the mobile and non-mobile sectors. BNP Paribas said: “Airtel appears well positioned to report strong revenue growth and improvement in profitability, led by higher rates and market share gains.”
For Airtel India, BNP Paribas estimates mobile revenue in QoQ inn at 4.5% in Q1 FY23. The revenue increase comes from the residual effect of the tariff hike in the December 2021 quarter. The analyst has said Airtel’s ARPU (average revenue per user) will rise to Rs 185, which is Rs 1 more than what ICICI Effects has estimated.
Furthermore, BNP Paribas said: “Airtel’s non-mobile business in India, including broadband and enterprise, will continue a strong growth trajectory, with telco revenue gaining market share across all divisions. We expect Airtel’s consolidated revenue and EBITDA to grow by 22% and 28% YoY.”
Reliance Jio Earnings Forecast by BNP Paribas
In front of Trust JioBNP Paribas said: “We forecast revenue growth of 4% quarter on quarter, with ARPU up 5% on a quarterly basis, with modest subscriber growth on a quarterly basis, while data volume growth on a quarterly basis will remain subdued. We expect 35%, 29% and 21% YoY EBITDA growth for Airtel (India mobile), Jio and VIL respectively”.
Reliance Jio is expected to show the highest ARPU growth during the quarter. This is due to the delayed effect of rate increases on the telco’s subscriber base as there are many customers charging for the long term.
ICICI Securities had said the ARPU would rise from Vi to Rs 126, which will be a 2% jump in QoQ. Vodafone Idea has not reached Rs 150 ARPU despite the rate hikes which is a worrying sign for the company and its investors. The telco needs to add as many 4G subscribers as possible to change that.
