Reliance Jio and Bharti Airtel are expected to report modest sequential growth in their fiscal fourth-quarter India mobile revenue, supported by strong broadband user additions. Vodafone Idea is likely to report a sequential dip in revenue. Airtel is expected to have a better ARPU than Jio, while Jio is slated to add more customers. Experts expect the overall telecom sector to see a moderate revenue growth, but the absence of tariff hikes and slow market share shift may lead to a moderation in revenue growth over the next few quarters.
Fitch Ratings predicts that the 5G capex investments of Reliance Jio and Bharti Airtel will taper to 35% of revenue in FY24. While the sector’s average Ebitda margin is expected to expand, Fitch cautions that the free cash flow generation will remain limited due to high 5G investments. The competitive landscape is also expected to be dominated by Jio and Airtel, with the two operators projected to add millions of subscribers in 2024. However, Fitch highlights the risks of a slow 5G adoption and the need for an evolved device ecosystem in the Indian market.
Vodafone Idea Ltd’s consolidated net loss widened to Rs 8,738 crore for the quarter ended September 2023. Revenue from operations rose by a marginal 0.9%. ARPU for the reporting quarter stood at Rs 142.
