Online Broadband Guide
Online Broadband Guide

Will RJio once again pull Bharti Airtel's revenues down in Q1FY18?

Will RJio once again pull Bharti Airtel's revenues down in Q1FY18?

Although Jio was said to have the slowest average 4G speed in the country (as per an OpenSignal's report), interestingly the telecom operators average peak speed is measured to be 50 Mbps, which is almost 13 times faster than its everyday 4G speed download speed of 3.9 Mbps. However, this is just a temporary condition and as Jio's data usage returns to more manageable levels, the big gap between its peak and average speeds should close. "Jio has experienced phenomenal growth since launching its all-4G service last autumn, signing up more than 100 million subscribers in the space of few months, and for much of that period Jio has been offering those customers almost unlimited access to mobile data".

Expecting drop in revenues to continue, the experts believe Bharti India wireless revenues to drop 1-2% QoQ (9% YoY and 16% YoY) in 1QFY18 to Rs 150.5 billion.

The pricing disruption in the Indian telecom market caused by the entry of a new operator has led to industry revenue declines and created further stress on sector profitability, cash flows and leverage, said Gopal Vittal, MD and CEO, India & South Asia, said in a company statement.

Bharti Airtel, for its India market, registered revenues of Rs 17,244 crore for the first quarter in 2017 compared to Rs 19,155 crore for the corresponding period a year ago, showing a dip of 10%. Voice usage per customer saw a 7.7 per cent sequential growth to 507 minutes in the June quarter while data usage per customer jumped 96.2 per cent to 2611 megabytes (MB).

In terms of of consolidated revenue, the company clocked Rs 21,958 crore in Q1, 2017 versus Rs 25,547 crore in the same quarter of the previous financial year, showing a decrease of 14%.

A CNBC-TV18 poll estimated India business revenue at Rs 12,790 crore, with operating profit at Rs 4,400 crore and margin at 34.3 crore for the quarter.

Revenues in the June quarter, at Rs 21,958 crore, were marginally up 0.10 per cent sequentially. Consequently, the consolidated EBIT dropped by 34.1% Y-o-Y to Rs 2,988 crore.

Bharti Airtel with 278.6 million mobile subscribers is the largest mobile operator in India.

Bharti Airtel's profit after tax (PAT) declined by 57% as it stood at Rs 1,251 crore in Q4 FY17 from Rs 2,908 crore in the same quarter past year.



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