Bharti Airtel Q3 preview: ARPU of Rs 205, revenue growth of 6%

Bharti Airtel Q3 preview: ARPU of Rs 205, revenue growth of 6%

As more consumers switch from 2G to 4G, analysts predict net subscriber acquisition of 3.6 million as well as ARPU of Rs 205 in the third quarter, up 1.1 percent from the previous quarter.

Because of the non-mobile segment's ongoing excellent performance and the increase of average revenue per user (ARPU), brokerage firms anticipate that Bharti Airtel will report a solid December quarter.

Later on February 5, the business will release its third-quarter financial results.

The average of seven experts polled by Moneycontrol predicts that net profit would reach Rs 3,308.50 crore, up 47% year over year and 14% sequentially.

To reach Rs 37,551.30 crore, consolidated revenue is predicted to increase by 2.3 percent per quarter and 6% annually.

Analysts attribute the 3.6 million net new subscribers and the Rs 205 ARPU, up 1.1% QoQ, to a better mix and more people switching from 2G to 4G.

He predicted that although the DTH market would continue to be muted, corporate and residential services will witness consistent development.

According to brokerage companies, Bharti Airtel's India revenue in Q3 is anticipated to increase 1.7% QoQ (10% YoY) to Rs 27,600 crore, with the mobile sector leading the way at 2.1% QoQ/10.5% YoY.

India's EBITDA is expected to increase 1.7% QoQ (up 12.5% YoY) to Rs 14,800 crore, although being limited by the recognition of expenditures associated with 5G.

What was Airtel Africa's performance like?

Strong growth was seen in Airtel Africa's third quarter, as sales increased by 21% from the previous quarter's 19% and EBITDA increased by 23.3% from 20% in constant currency.

On February 2nd, Airtel Africa made their figures public.

The primary cause of the 1.4 percent deviation in revenue and EBITDA from analysts' expectations was foreign exchange transactions in Malawi and Nigeria. EBITDA margin decreased by 60 basis points to 48.4 percent when one-time expenses were excluded.

One tenth of a percentage point is equal to one basis point.

The business maintained its projection of $800–825 million for fiscal 2014, thus its $182 million third-quarter capital investment in Africa was less than the $223 million consensus, perhaps as a result of phasing. Because to lower capital investment, operating free cash flow exceeded expectations by 10%.

The weakening of the African currency, according to analysts, might hurt Airtel Africa's performance, but stablecoin growth overall is probably going to be strong.

Investors, according to analysts, are keeping a careful eye on Bharti Airtel's progress with 5G deployment in India.

The stock was down 0.4% at Rs 1,146.05.05 at 10 am. from the previous closing. Over the last year, the stock has increased by 45 percent.