|Thursday, 31 October 2013 00:00|
Bharti picks up, regulatory environment looks up
Bharti Airtel’s numbers for the September quarter—revenues and ebitda were up 5% and 4% qoq, respectively—suggest the telco is coping reasonably well with the slowdown as also the competition. The good news is that the churn, at 3.2% for the quarter, is coming off and, given how the telco has been gradually weaning customers off freebies, the realisable tariff is gradually going up for several quarters now. Which is why despite the negative seasonal effect, Bharti’s average revenue per minute (ARPM) has seen a slight increase. Indeed, Bharti seems to have weathered the seasonal impact better than Idea Cellular—while Idea saw a fall in minutes of usage (MoU) of 6% sequentially, Bharti’s MoU fall was half of that. That helped push up Bharti’s margins by 29 basis points qoq, while Idea’s contracted. In the home market, therefore, Bharti seems to be doing better—the India wireless piece had seen a strong ebitda growth of 12% in the June quarter driven by an uptick in the revenue per minute. What is also helping the company—as others like Vodafone and Idea—regain top line growth is the consolidation in the market. Moreover, the data business is picking up—revenues in Q2FY14 grew 21% qoq.
|Last Updated ( Thursday, 31 October 2013 00:01 )|