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<ul><li>Telecom operators have reported an increase in ARPU after the recent tariff hike.</li><li>At the same time, the telcos have also lost subscribers in the quarter.</li><li>Airtel has recorded the highest ARPU at ₹233 per month, followed by Jio with an ARPU of ₹195.</li></ul>India’s leading telecom operators Reliance Jio, Airtel and Vi have lost subscribers in this quarter while recording a robust increase in their average revenue per user (ARPU) because of <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-price-hike-new-plans-and-how-you-can-save-money/articleshow/111331794.cms">recent tariff hikes</a> according to a report by Centrum. The ARPU for private telecom players was positively impacted due to tariff hikes implemented in July 2024. <div type="Article" hostid="261" msid="111512587" title="Jio vs Airtel vs Vi recharge plans comparison – plan benefits and price comparison after tariff hike" mstype="2" mssubtype="0"></div> Bharti Airtel continues to maintain its lead with an ARPU of ₹233 per month for the quarter, up from ₹211 per month in the first quarter of FY25 Reliance Jio reported an ARPU of ₹195 per month compared to ₹182 per month in Q1FY25 whereas VIL reported an ARPU of ₹156 per month, up from ₹146 per month in Q1FY25. The report indicates that the tariff increases will aid telecom operators in achieving higher Average Revenue Per User (ARPU), and the full impact of these tariff increases will become evident within a few quarters. <div type="Article" hostid="261" msid="114944496" title="Reliance Jio IPO – India’s biggest telco to go public in 2025, retail IPO further away" mstype="2" mssubtype="0"></div> Conversely, the operator's subscriber base declined due to SIM consolidation resulting from tariff increases implemented in July 2024. Bharti Airtel lost around 2.9 million mobile subscribers in the quarter to reach 352 million. Reliance Jio lost around 10.9 million subscribers in the quarter to reach 479 million subscribers whereas Vi lost 5.1 million subscribers in this quarter mainly in the 2G segment to reach 205 million subscribers. This quarter also saw increased porting to the government-owned telecom operator Bharat Sanchar Nigam Limited (BSNL), from private operators as tariffs were not raised by the telco. The report says SIM consolidation is expected to be largely over by the end of the third quarter of the current fiscal. It adds that besides tariff hikes, ARPU for the sector will continue to grow also led by subscribers moving from 2G to 4G and growth in post-paid subscribers. Average voice and data use is expected to increase with this migration. <div type="Article" hostid="261" msid="113548793" title="Jio and Airtel lost subscribers in July after tariff hike, BSNL records growth" mstype="2" mssubtype="0"></div> Both Airtel and Reliance Jio are adding more cities to their 5G coverage with presence across most districts of India. About 148 million Jio subscribers have migrated to 5G and 105 million Airtel subscribers moved to 5G. With more 5G subscribers, data usage is expected to increase thereby increasing revenue and ARPU for telecom operators. The report says with these changes and reforms of September 2021, the telecom sector is moving towards some sort of stability. Tariff hikes in December 2019, November 2021 and July 2024 have led to a steady rise in operator’s ARPU. About the revival of Vi, the report says the government now has a 24% equity stake in the telco. The company is in discussion with banks to raise debt capital of ₹250 billion for its capex plans of ₹500-550 billion over the next 3 years to improve its network capacity. The company has also announced its plan to launch its 5G services in another 6 months. However, the net debt of the company still stands at ₹2 trillion. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/tata-to-buy-a-majority-stake-in-pegatrons-iphone-plant-in-india/articleshow/115414852.cms">Tata to buy a majority stake in Pegatron's iPhone plant in India</a> <a href="https://www.businessinsider.in/stock-market/webstories/ntpc-green-energy-ipo-gmp-risk-factors-and-all-you-need-to-know/slidelist/115403791.cms">NTPC Green Energy IPO – GMP, risk factors and all you need to know</a> <a href="https://www.businessinsider.in/entertainment/news/jiostar-announces-plans-starting-at-15-heres-everything-you-need-to-know/articleshow/115326701.cms">JioStar announces plans starting at ₹15 – here’s everything you need to know</a>

Telcos report a rise in ARPU after tariff hike, lose subscribers

Telecom operator <keyword id="19951944" type="General" weightage="20" keywordseo="Bharti-Airtel" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharti Airtel" meta.hostid="261" meta.entityid="Bharti Airtel">Bharti Airtel</keyword> on Tuesday posted a 31 per cent drop in consolidated profit to Rs 2,072 crore in the March quarter. The company had registered a profit of Rs 3,005.6 crore in the year-ago period. The consolidated revenue of operations increased 4.4 per cent to Rs 37,599.1 crore during the quarter under review from Rs 36,009 crore a year earlier. "Consolidated performance was impacted primarily by the devaluation of the Nigerian Naira. We added 7.8 million smartphone customers and delivered an industry leading <keyword id="20233536" type="General" weightage="20" keywordseo="ARPU" source="keywords">ARPU</keyword> of Rs 209," Bharti <keyword id="19896909" type="General" weightage="20" keywordseo="airtel" source="keywords">Airtel</keyword> Managing Director Gopal Vittal said. For the year ended March 31, 2024, Bharti Airtel's profit dropped 10.5 per cent to Rs 7,467 crore from Rs 8,346 crore in FY23. The annual revenue from operations of the company increased 7.7 per cent to Rs 1,49,982.4 crore during the reported fiscal from Rs 1,39,144.8 crore in 2022-23. For FY24, the Airtel board has recommended a final dividend of Rs 8 per fully paid-up equity share of face value of Rs 5 each and Rs 2 per partly paid-up equity share of face value of Rs 5 each. SEE ALSO:<a href="https://www.businessinsider.in/tech/news/chatgpt-maker-openai-has-launched-gpt-4o-a-new-ai-voice-assistant/articleshow/110112039.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/chatgpt-maker-openai-has-launched-gpt-4o-a-new-ai-voice-assistant/articleshow/110112039.cms" target="_blank">ChatGPT maker OpenAI has launched GPT-4o, a new AI voice assistant</a><a href="https://www.businessinsider.in/tech/news/google-i/o-event-today-how-to-watch-and-what-to-expect/articleshow/110105611.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/google-i/o-event-today-how-to-watch-and-what-to-expect/articleshow/110105611.cms" target="_blank">Google I/O event today – how to watch and what to expect</a><a href="https://www.businessinsider.in/tech/mobile/news/oneplus-nord-ce-4-lite-to-launch-soon-in-india-expected-price-specs-and-everything-we-know-so-far/articleshow/110076267.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-nord-ce-4-lite-to-launch-soon-in-india-expected-price-specs-and-everything-we-know-so-far/articleshow/110076267.cms" target="_blank">OnePlus Nord CE 4 Lite to launch soon in India – expected price, specs and everything we know so far</a>

Bharti Airtel net profit tanks 31% to ₹2,072 cr in Q4

<ul><li>Telecom operators are expected to announce a major <keyword id="20382313" type="General" weightage="20" keywordseo="tariff-hike" source="keywords">tariff hike</keyword> after the general elections.</li><li><keyword id="19951944" type="General" weightage="20" keywordseo="Bharti-Airtel" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharti Airtel" meta.hostid="261" meta.entityid="Bharti Airtel">Bharti Airtel</keyword> will reportedly lead the tariff hike which will increase the prices by up to 17%.</li><li>The last major tariff hike in the telecom industry increased the prices by around 20% in December 2021.</li></ul> Indian <keyword id="20243474" type="General" weightage="20" keywordseo="telecom-companies" source="keywords">telecom companies</keyword> may hike the tariff by 15 to 17% after the 2024 general elections. The tariff hike is expected to take place around July-October. A <a href="https://www.moneycontrol.com/news/business/airtel-to-lead-telecom-tariff-hike-of-15-17-post-lok-sabha-elections-analysts-12613121.html" data-type="tilCustomLink">report</a> by Moneycontrol, citing analysts, has said that Sunil Mittal-led Bharti Airtel will lead the upcoming round of tariff hike. The last major tariff hike was announced in December 2021 and Airtel had increased the prices by around 20% back then. The general elections are scheduled to commence on April 19 and the last phase will end on June 1. The result of the election will be declared on June 4. According to analysts at Antique Stock Broking, Airtel will emerge as the biggest beneficiary of the tariff hike as it will be able to increase its average revenue per user (<keyword id="20233536" type="General" weightage="20" keywordseo="ARPU" source="keywords">ARPU</keyword>) from the existing ₹208 to ₹286 by the end of FY27. Additionally, the telco’s subscriber base is expected to grow at 2% per annum, higher than the industry’s growth of 1%. <cmsannotation type="cmsannotation" annotationid="Prices in India are among the cheapest in the world" comment="subhead" text="Prices in India are among the cheapest in the world">Prices in India are among the cheapest in the world</cmsannotation> As per analysts, the prices of telecom services are among the cheapest in the world and need revision to stabilise revenues. The ARPU may need to be increased from around ₹200 to ₹300 to ensure profitability for large telecom players like Bharti Airtel. The company’s plan to increase its ARPU to ₹286 includes the tariff hike contributing around ₹55, customers moving from 2G to 4G contributing ₹10 and customers opting for costlier 4G and 5G plans contributing ₹14. This also hints towards the company introducing new 5G plans. At present, there are no separate 5G plans and 4G users are being offered complimentary 5G services by both Reliance Jio and Airtel. While challenges do exist as Bharti has chosen a different 5G rollout path versus key competitors, we believe it is unlikely to dent Bharti's subscriber base or growth significantly. We also believe valuations do not reflect the emerging highly positive macro telecom sector environment, opines the analysts. Airtel and Jio have been gaining subscribers over the past few years at the cost of cash-strapped Vi and state-run Bharat Sanchar Nigam Limited (BSNL). The two telcos, who are yet to launch 5G services in the country, are expected to continue losing subscribers over the current financial year as well. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-add-nearly-5-million-subscribers-in-january-2024/articleshow/109040220.cms">Reliance Jio and Airtel add nearly 5 million subscribers in January 2024</a> <a href="https://www.businessinsider.in/business/telecom/news/ussd-based-call-forwarding-to-be-suspended-soon-to-curb-fraud/articleshow/108933705.cms">USSD-based call forwarding to be suspended soon to curb fraud</a> <a href="https://www.businessinsider.in/business/telecom/news/mobile-number-portability-revamped-to-reduce-sim-swap-frauds-here-are-the-new-rules/articleshow/108613683.cms">Mobile Number Portability revamped to reduce SIM swap frauds – Here are the new rules</a>

Telecom companies may hike tariffs by up to 17% after the general elections, predict analysts

Just last month, Jio, Vodafone and <keyword id="19896909" type="General" weightage="20" keywordseo="airtel" source="keywords">Airtel</keyword> were making headlines for announcing hikes in their tariff plans. Users across India were talking about the new rates and were comparing them with the new ones. Talking specifically about Jio, the company raised the cost of its plans by around 10 - 27 percent. If you are a Jio subscriber, here is some good news for you. The company has recently introduced a <keyword id="21380985" type="General" weightage="20" keywordseo="new-plan" source="keywords">new plan</keyword> under <keyword id="22851878" type="General" weightage="20" keywordseo="Rs-200" source="keywords">Rs 200</keyword> and it gives you some unlimited benefits. <h2>Jio introduces new Rs 198 <keyword id="21079302" type="General" weightage="20" keywordseo="prepaid-plan" source="keywords">prepaid plan</keyword></h2>Reliance-owned Jio quietly rolled out a new prepaid plan for its customers priced at Rs 198. This new offering seems to be designed to cater to users with high data consumption needs over a short period. The plan could also be a strategic move by Jio to enhance its average revenue per user (ARPU) while providing value to its customers. <h2>What the plan includes </h2>The Rs 198 prepaid plan comes with a 14-day service validity, making it a suitable option for users who require a substantial amount of data in a short timeframe. The plan includes the following benefits: Users will receive 2GB of data per day, totaling 28GB over the 14-day period. This high data limit is ideal for those who consume a lot of data daily, whether for streaming, gaming, or other online activities. Further, the plan includes unlimited voice calling, ensuring that users can stay connected with friends and family without worrying about running out of talk time. Subscribers will also receive 100 SMS per day, which can be used for messaging throughout the validity period. Beyond the core services, the Rs 198 plan also offers access to Jio’s suite of apps, including JioCloud, <keyword id="19940563" type="General" weightage="20" keywordseo="JioCinema" source="keywords">JioCinema</keyword>, and JioTV. These apps provide cloud storage, entertainment, and live TV services, adding further value to the plan. While the Rs 198 plan is a compelling option for heavy data users, it’s not the cheapest plan in Jio’s portfolio. The company’s most affordable offering is the Rs 189 plan, which provides a more basic set of features for users on a tighter budget. However, the Rs 198 plan’s high data allowance and additional benefits make it a strong contender for those who need more from their mobile service.

Reliance Jio launches new plan under Rs 200, get 2GB daily data and more

Reliance Jio and Airtel price hike – new plans and how you can save money

<ul><li><keyword id="15491" type="General" weightage="80" keywordseo="airtel" source="Orion">Airtel</keyword> currently has the best ARPU in the Indian telecom sector at ₹193, but it is still significantly lower than the ₹300 the company<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtels-ceo-wants-vodafone-idea-to-survive-and-stay-on/articleshow/73973990.cms"> has said is the minimum ARPU necessary to ensure reasonable return on capital.</a> </li><li>Airtel chairman Sunil Bharti Mittal said he hopes for a tariff hike by mid-2023. </li><li>Airtel is betting on multiple factors to drive ARPU growth – raising base tariffs in select circles, focussing on increasing postpaid coverage in its top towns, and rising usage of 5G-capable smartphones. </li></ul>A ramp up in postpaid subscribers and 5G-powered premiumisation are expected to drive growth for India’s No. 2 telecom company Bharti Airtel, especially at a time when tariff hikes have not rolled in as expected. Airtel’s continued expansion of 5G services across the country is expected to drive up data usage, leading to premiumisation. While Airtel started tentatively experimenting by hiking tariffs of its base ₹99 plan offering in select circles in November last year, it has still not increased prices across the board. This has resulted in muted growth in Airtel’s average revenue per user (ARPU), a key metric to understand a telecom company’s performance. In the December quarter, Airtel’s ARPU grew by a meagre 1.6% sequentially. However, now that 5G is here and Airtel has rolled it out in 108 cities across the country with a target of covering all major cities by the end of this year, analysts expect it to result in a much-needed ARPU boost as data consumption is higher on 5G than 4G. “We expect robust mobile revenue growth, and ARPU to rise, driven by subscriber migration from 2G to 4G, subscriber migration to higher bucket data plans due to a surge in data usage, gains in high-value postpaid subscribers, and segmented tariff hikes,” said a report by HSBC. For context, Airtel’s postpaid subscriber base increased to 19 million in Q3 FY23, from 17.6 million in the same period last year. It also added more postpaid subscribers in the December quarter (at 6.53 lakh) than in the previous two quarters combined (at 5.32 lakh). <cmsannotation type="cmsannotation" annotationid="Here’s what will drive ARPU growth going forward" comment="subhead" text="Here’s what will drive ARPU growth going forward">Here’s what will drive ARPU growth going forward</cmsannotation> In an analyst call, Airtel underlined multiple factors that will drive its ARPU growth going forward, including – raising base tariffs in select circles, focussing on increasing postpaid coverage in its top towns, and a fifth of its total subscribers having 5G-capable smartphones by the end of FY24. According to analysts at HSBC, Airtel hiking the base plan tariff from ₹99 to ₹155 in 17 out of 22 circles is another positive contributor to ARPU growth. The telco also underlined that the top 150 towns in the country account for 40% of the total industry revenue. To drive its revenue growth, Airtel said it would focus on these towns in terms of expanding its postpaid subscriber base, attracting subscribers with its 5G availability. According to an analysis by HSBC, postpaid ARPUs stand at 1.6-1.7x that of prepaid, and Airtel’s focus on increasing its postpaid subscriber base augurs well for ARPU growth. Lastly, Airtel also said that it expects 20% of its subscribers to have 5G-capable devices by the end of March 2024. The telco has a target of reaching 300 cities by then, and analysts<a href="https://m.economictimes.com/industry/telecom/telecom-news/airtel-jio-target-100-150-million-5g-conversions-by-march-2024/articleshow/96837399.cms"> expect</a> high data allowances to lure existing subscribers into converting to 5G. <cmsannotation type="cmsannotation" annotationid="Airtel chairman hints at tariff hike by mid-year" comment="subhead" text="Airtel chairman hints at tariff hike by mid-year">Airtel chairman hints at tariff hike by mid-year</cmsannotation> Analysts have been <a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-and-reliance-jio-could-hike-tariffs-by-as-much-as-10-according-to-analysts/articleshow/96375427.cms">expecting tariff hikes</a> for a few months now but the hikes have been slow to materialise. Now, Airtel chairman Sunil Bharti Mittal has said that a tariff hike is likely by mid-2023. “Lot of capital has been injected that has made the balance sheet strong but the return on capital of this industry is very low. That needs to change. We are talking of small increments that need to come in the Indian tariff situation. I hope half (by mid) of this year,” Mittal said at the ongoing Mobile World Congress in Barcelona, Spain, responding to a PTI query. Although Airtel’s ARPU at ₹193 is the best in the industry, it is still significantly lower than the ₹300 the company<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtels-ceo-wants-vodafone-idea-to-survive-and-stay-on/articleshow/73973990.cms"> has said is the minimum ARPU necessary to ensure reasonable return on capital.</a> Responding to a query on the impact of tariff increase on people at the bottom of the pyramid, <a href="https://www.moneycontrol.com/news/tags/sunil-bharti-mittal.html">Mittal</a> said the hike would be low compared to people’s spending on other things and disagreed that they will be impacted. "Salaries have gone up, rents have gone (up), except one thing. There is no one complaining. People are consuming 30 GB for almost paying nothing. We don't have more Vodafone type scenarios in the country,” Mittal added, underlining the need for tariff hikes. <cmsannotation type="cmsannotation" annotationid="Data usage and subscribers on the rise" comment="subhead" text="Data usage and subscribers on the rise">Data usage and subscribers on the rise</cmsannotation> In its Q3 FY23 earnings,<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q3-net-profit-jumps-91-to-1588-crore-misses-estimates/articleshow/97698481.cms"> Airtel reported</a> data usage of 20.8GB per user per month during the quarter, increasing from 18.7GB during the same period a year ago – this is a 11% increase year-on-year. Another shot in the arm for Airtel during the quarter was a healthy addition of data users – the telco reported an increase of 6.4 million data subscribers sequentially and 21.2 million year-on-year. Airtel’s 4G subscribers as a percentage of its total subscribers also witnessed an improvement in the December quarter, increasing to 65% from 61% a year ago. The rise in 4G subscribers also reflects in the ARPU growth on a year-on-year basis, which rose to ₹193 in Q3 FY23, from ₹163 in Q3 FY22. Put together, wider 5G availability, converting existing subscribers to 5G by luring them with higher data allowances, focussing on the top 150 towns and targeting postpaid subscriber growth should help Airtel deliver ARPU improvements. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/passenger-vehicles-to-continue-driving-auto-sales-in-february-evs-gain-a-stronghold/articleshow/98272857.cms">Passenger vehicles to continue driving auto sales in February, EVs gain a stronghold</a> <a href="https://www.businessinsider.in/business/corporates/news/spicejet-to-raise-2500-crore-fresh-capital-convert-carlyles-debt-into-equity-and-demerge-cargo-biz/articleshow/98270557.cms">SpiceJet to raise ₹2,500 crore fresh capital, convert Carlyle’s debt into equity and demerge cargo biz</a> <a href="https://www.businessinsider.in/india/news/elephant-will-not-march-but-run-powered-by-private-consumption-union-amc/articleshow/98182584.cms">Elephant will not march but run, powered by private consumption: Union AMC</a>

Airtel’s ARPU improvements to be driven by postpaid subscribers and 5G-powered premiumisation

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> reported a net loss of ₹7,990 crore in Q2 as compared to ₹7,231 crore in the same quarter, a year ago. </li><li>The telco also lost 5.8 million subscribers during the quarter, but its average revenue per user (<keyword id="107848" type="General" weightage="80" keywordseo="arpu" source="Orion">ARPU</keyword>) improved to ₹135 from ₹131 in the previous quarter. </li><li>The company’s CEO <keyword id="2786361" type="General" weightage="80" keywordseo="akshaya-moondra" source="Orion">Akshaya Moondra</keyword> maintained that Vi is engaging with lenders and investors to raise funds for network expansion and 5G rollout. </li></ul>Vodafone Idea’s troubles continue to worsen as its net loss widened to ₹7,990 crore in Q3, both on a year-on-year and sequential comparison. It was also higher than analyst estimates, albeit<a href="https://economictimes.indiatimes.com/markets/stocks/earnings/vodafone-idea-q3-preview-debt-ridden-telco-may-report-wider-loss/articleshow/97863951.cms"> marginally</a>. The telco reported a net loss of ₹7,596 crore in Q2, and ₹7,231 crore in Q3 last year. On the other hand, its revenues grew 9.3% YOY to ₹10,621 crore. Sequentially, its topline was flat – the telco<a href="https://www.businessinsider.in/business/telecom/news/vodafone-ideas-q2-loss-widens-to-7596-crore/articleshow/95282354.cms"> reported</a> a revenue of ₹10,615 crore in Q2. Vi’s stock was trading flat in the first half on Wednesday at ₹7.7. <cmsannotation type="cmsannotation" annotationid="Subscriber base continues to shrink, but 4G user additions boost ARPU" comment="subhead" text="Subscriber base continues to shrink, but 4G user additions boost ARPU">Subscriber base continues to shrink, but 4G user additions boost ARPU</cmsannotation> Like its peers <keyword id="6354287" type="General" weightage="80" keywordseo="bharti-airtel" source="Orion">Bharti Airtel</keyword> and <keyword id="6354504" type="General" weightage="80" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword>, Vodafone Idea also reported a slight uptick in its average revenue per user (ARPU) during the quarter to ₹135, as compared to ₹131 in the previous quarter, and ₹115 a year ago. Its ARPU is still significantly lower than that of its rivals Bharti <keyword id="15491" type="General" weightage="80" keywordseo="airtel" source="Orion">Airtel</keyword> and Reliance Jio. While Airtel<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q3-net-profit-jumps-91-to-1588-crore-misses-estimates/articleshow/97698481.cms"> reported</a> an ARPU of ₹193 in Q3, Jio<a href="https://www.businessinsider.in/business/telecom/news/reliance-jios-net-profit-up-3-2-sequentially-at-4881-crore-in-q3-on-better-subscriber-mix/articleshow/97179677.cms"> reported</a> an ARPU of ₹178.2. Vi’s total subscriber base continued to shrink, declining to 228 million in Q3 from 234 million in the previous quarter. In the same period last year, Vi’s subscriber base stood at 247 million. On a positive note, Vi’s 4G subscriber base continued to increase. In Q3, Vi added 1 million 4G subscribers, taking the total to 121.6 million at the end of the quarter. Vi’s 4G subscribers as a percentage of its total subscribers increased to 53.2% during Q3, up from 51.5% in the previous quarter. Vodafone Idea’s Q3 in numbers: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY22 </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,621 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,615 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9,717 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,990 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,596 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,231 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ARPU </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹135 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹131 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹115 </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total subscribers </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">228.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">234.4 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">247.2 million </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4G subscribers </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">121.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">120.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">117 million </td></tr></tbody></table> Source: Company reports <cmsannotation type="cmsannotation" annotationid="Engaging with lenders and investors for 5G rollout says Vi" comment="subhead" text="Engaging with lenders and investors for 5G rollout says Vi">Engaging with lenders and investors for 5G rollout says Vi</cmsannotation> Even as its rivals Bharti Airtel and Vodafone Idea rolled out their respective 5G networks extensively across the country, Vi says it is still in talks with stakeholders for its 5G rollout. “We continue to remain engaged with our lenders for further debt fund raising as well as with other parties for equity or equity-linked fund raising, to make required investments for network expansion and 5G rollout,” said Akshaya Moondra, CEO, Vi. Vi acquired 5G spectrum worth ₹18,799 crore, payable in 20 annual installments. Its rivals Airtel and Reliance Jio<a href="https://www.businessinsider.in/business/telecom/news/jio-vs-airtel-which-one-will-offer-faster-and-more-reliable-5g-services/articleshow/93516727.cms"> acquired</a> spectrum worth ₹43,084 crore and ₹88,078 crore, respectively. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-posts-820-crore-net-profit-in-q3-gautam-adani-says-current-market-volatility-temporary/articleshow/97914997.cms">Adani Enterprises posts ₹820 crore net profit in Q3: Gautam Adani says current market volatility temporary</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-group-market-cap-falls-below-10-lakh-crore/articleshow/97907746.cms">Adani group’s market cap falls below ₹10 lakh crore as sell-off continues</a> <a href="https://www.businessinsider.in/business/corporates/news/nykaas-stock-plunges-4-2-after-its-q3-net-profit-slips-70/articleshow/97901748.cms">Nykaa’s stock plunges 4.2% after its Q3 net profit slips 70%</a>

Vodafone Idea Q3 net loss widens to ₹7,990 crore, average revenue per user edges up to ₹135

<ul><li>Indian telecom companies are reportedly looking to increase prices of plans.</li><li><keyword id="2003276" type="General" weightage="100" keywordseo="jio" source="Orion">Jio</keyword>, Airtel and Vodafone Idea are reportedly planning on increasing prices by around 10%.</li><li>The companies are looking to increase the prices by Diwali.</li></ul>Indian telecom companies <keyword id="6354504" type="General" weightage="50" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword>, Airtel and Vodafone Idea are reportedly planning on increasing prices once again. The telcos had earlier <a href="https://www.businessinsider.in/business/telecom/news/mukesh-ambani-led-reliance-jio-hikes-prices-of-its-plans-by-21/articleshow/87965329.cms">hiked the prices</a> by up to 25% in November 2021. According to an Economic Times <a href="https://telecom.economictimes.indiatimes.com/news/jio-airtel-vodafone-idea-may-increase-tariffs-by-another-10-12-by-diwali-analysts/91745223">report</a>, the telcos are planning on increasing prices by around 10 to 12%, which will take the average revenue per user (<keyword id="107848" type="General" weightage="80" keywordseo="arpu" source="Orion">ARPU</keyword>) up by around 10%. The report cites analyst Mayuresh Joshi, head of equity research at William O’ Neil &amp; Co, who expects the telcos to increase their prices by Diwali this year. Despite the increased prices, the telcos are expected to add around 40 million new users by the end of FY 2023. The telcos faced minimal issues despite increasing tariffs by nearly 25% in November 2021 and this has paved the way for another tariff hike. According to the analysts, the new subscriptions will be fueled by the rural markets where the tele-density is currently around 60%. Among the telcos, Mukesh Ambani-led Jio and Sunil Mittal-led Airtel are expected to attract the bulk of new subscribers, while Vodafone Idea enjoys modest gains. The increased prices will push Airtel’s ARPU to around INR 200. Jio and Vodafone’s Idea’s ARPU is expected to increase to INR 185 and INR 135 respectively. Airtel’s chief Gopal Vittal recently <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/airtel-to-hike-rates-in-2022-to-push-arpu-to-rs-200-gopal-vittal/articleshow/91644399.cms">said</a> that the company will announce a tariff hike in 2022 to increase its ARPU to INR 200. The company intends to take its ARPU to INR 300, which Vittal claims will happen over a period of time. This indicates that the telco intends to announce multiple tariff hikes in the near future. This also means that soon users might be forced to pay two times the prices that they were paying before November 2021. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-results-q4-fy22-profit-revenue-subscriber-growth/articleshow/91374478.cms">Reliance Jio reports its strongest profit growth in five quarters as it offloads millions of low quality subscribers</a> <a href="https://www.businessinsider.in/business/telecom/news/what-is-the-impact-of-new-vpn-guidelines-on-users-and-vpn-providers/articleshow/91468069.cms">Indian government's VPN guidelines will impact over 270 million users as VPN providers have no option but to leave the country</a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-vs-bharti-airtel-four-charts-to-showcase-how-indian-telecom-giants-faired-in-2022/slidelist/91640306.cms">Reliance Jio vs Bharti Airtel — four charts that showcase how the Indian telecom giants faired in 2022</a>

Jio, Airtel and Vodafone Idea are reportedly planning on increasing prices again

Telecom service provider <keyword id="6354287" type="General" weightage="80" keywordseo="bharti-airtel" source="Orion">Bharti Airtel</keyword> posted quarterly revenues of Rs 31,500 crore in Q4FY22, up 22.3 per cent year on year. The sharp rise in revenues was backed by strong and consistent performance delivery across portfolios. The company's <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> business posted quarterly revenues of Rs 22,500 crore, up 22.7 per cent on year. Mobile services revenues in India were up 25.1 per cent on year, led by increase in average revenue per user (<keyword id="107848" type="General" weightage="80" keywordseo="arpu" source="Orion">ARPU</keyword>), largely on account of flow through of tariff increase done in late 2021. Mobile ARPU increased to Rs 178 in Q4FY22 as against Rs 145 in the same period the previous fiscal. It reported a 165 percent growth in its consolidated net profit of Rs 2,008 crore in the said quarter, as against Rs 759 crore in the year ago period. Besides, digital TV continued to amass its strong market position. Further, 4G customers rose by 21.5 million on year and 5.2 million on quarterly basis, thereby crossing 200+ million milestone which is 62 per cent of the overall customer base, Bharti <keyword id="15491" type="General" weightage="100" keywordseo="airtel" source="Orion">Airtel</keyword> said in filing to the exchanges. It rolled out additional 7,000 towers in the quarter to provide ubiquitous connectivity and differentiated network experience. "Airtel continues to have the highest ARPU at Rs 178. Our Homes and enterprise business continue to exhibit very strong growth momentum, reflecting the resilience of our overall portfolio. Our strong balance sheet and cash flows have enabled us to further repay some of our spectrum liabilities ahead of schedule and improve our leverage," said <keyword id="521074" type="General" weightage="50" keywordseo="gopal-vittal" source="Orion">Gopal Vittal</keyword>, MD and CEO, <keyword id="2925917" type="General" weightage="20" keywordseo="india-south-asia" source="Orion">India &amp; South Asia</keyword>. "We continue to remain optimistic about the opportunities in the coming years and believe we are well poised as a company for three reasons." This, he said, were firstly, its ability to execute consistently to a simple strategy of winning with quality customers and delivering the best experience to them. Secondly, its future proofed business model with massive investments in both infrastructure and digital capabilities, and lastly, the financial prudence backed by the strong focus on governance. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/lic-makes-a-weak-listing-on-exchanges-today-heres-what-analysts-have-to-say/articleshow/91621041.cms">LIC makes a weak debut on exchanges today: Here is what analysts have to say</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/paradeep-phosphates-ipo-company-revenue-profit-growth-outlook-in-10-points/slidelist/91619298.cms">Paradeep Phosphates IPO: Company revenue, profit, growth outlook in 10 points</a>

Bharti Airtel's revenues soar by 22% year on year, net profit 165% in Q4FY22

Telecom operator <keyword id="6354287" type="General" weightage="20" keywordseo="bharti-airtel" source="Orion">Bharti Airtel</keyword>'s consolidated net profit fell 2.8 per cent during Q3FY22 to Rs 830 crore on a year-on-year basis. In the same quarter of the previous fiscal, the consolidated net profit of the company stood at Rs 854 crore. On the other hand, the total revenues during Q3FY22 grew 12.6 per cent to Rs 29,867 crore, as against Rs 26,518 crore in the same quarter last fiscal. Besides, EBITDA grew 22.4 per cent to Rs 14,905 crore, against Rs 12,178 crore reported in the same quarter last fiscal. "We have delivered another quarter of sustained performance across all our business segments... The recent tariff revision for mobile services has gone down well and we are exiting the quarter with an industry leading ARPU of Rs 163," said Gopal Vittal, MD and CEO, India and South Asia in a statement. The full impact of the revised mobile tariffs, however, will be visible in the fourth quarter, he said. "Our Enterprise, Homes and Africa business continue to deliver strongly, with steady increase in contribution to the overall mix of the portfolio. Our balance sheet is robust and we are now generating healthy free cash flows. This has enabled us to recently prepay some of our spectrum liabilities to the government thereby reducing the interest burden." Furthermore, Google's recent investment in the company is a strong validation of <keyword id="15491" type="General" weightage="100" keywordseo="airtel" source="Orion">Airtel</keyword>'s role in being a leading pioneer of India's digital revolution, the statement said. "Our emerging digital services portfolio across Airtel IQ, AdTech, digital market place, Nxtra and digital banking positions us well to build an Airtel of the future," he added. Headquartered in India, Airtel is a global communications solutions provider with over 480 million customers in 17 countries across South Asia and Africa. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/jio-laptop-inches-closer-to-launch-could-be-powered-by-windows-10-and-an-arm-processor/articleshow/89400900.cms">Jio laptop inches closer to launch, could be powered by Windows 10 and an ARM processor</a> <a href="https://www.businessinsider.in/business/telecom/news/30-day-monthly-recharge-plans-for-prepaid-users-now-as-per-trai/articleshow/89173110.cms">Prepaid mobile users may get to do one less recharge a year, but savings are not assured</a>

Bharti Airtel reports 12.6% increase in revenue, ARPU up by 6.5%

Bharti Airtel, SBI, HDFC Life Insurance and other hot stocks on November 3 ahead of Diwali

<ul><li>Telecom sector’s aggregate gross revenues (AGR) are expected to grow at 11-12% CAGR over FY23-26.</li><li>Like in Q1, AGR growth in the next three years will be driven by data monetization and premiumisation.</li><li>During the same period, <keyword id="15491" type="General" weightage="20" keywordseo="airtel" source="Orion">Airtel</keyword> is expected to gain AGR market share due to its ‘sticky and premium’ subscribers. </li></ul>After suffering through years of disruptions and consolidations, the telecom sector is showing good signs of growth in aggregate gross revenues (AGR) driven by ‘premiumisation’ – higher 4G conversions and more post-paid subscriptions. The telecom sector’s AGR is expected to grow at a compounded annual growth rate (CAGR) at 12% between FY23-FY26. And, Bharti Airtel is expected to add more market share, say analysts. “Bharti’s AGR market share is likely to jump 125 basis points in the same period (FY23-FY26) to 37.5%, and RJio’s by 110 basis points to 42.5%,” said a research report by ICICI Securities. The signs are already visible from Q1FY24 performance of Airtel, as its AGR market share went up by 80 basis points. “Bharti's strong market share gains in B and C circles indicates traction on its rural expansion strategy,” said Jefferies as it expects sector revenues to grow at 11% CAGR over FY23-26 with market share gains for Bharti/Jio. Vodafone Idea’s market share has already declined to an all-time low in Q1, and market share losses could accelerate further, says Jefferies as 5G becomes mainstream. The company has been unable to start rolling out 5G due to its heavy debt, unlike its peers who have aggressively rolling it out. The era of tariff hikes The industry AGR recorded an 8% growth in Q1 even as the sector has not seen any tariff hikes in the last 12 months. This was driven by subscriber additions, data monetisation and premiumisation – conversion from 2G to 4G and from prepaid to postpaid. Going ahead, this trend will only add to AGR as well as ARPU growth. The average revenue per user (ARPU) is also expected to grow at a healthy pace of 10% over the next three years, estimates ICICI Securities. Moreover, there are tariff hikes to come. “We believe India wireless business tariff hikes are likely to be more frequent, going forward, given the consolidated industry structure and higher ARPU requirement to justify significant capex for 5G rollout,” said a report by J M Financial. In the last three years, the sector took two tariff hikes in December 2019 by around 25%, and another in December 2021 by around 15%. The companies were affected by the first tariff hike due to SIM consolidation, but the second hike smoothly flew into the AGR. ICICI Securities too expects another tariff hike in FY25 which is expected to be at around 10%. But this is not the only factor that can contribute to ARPU growth. Over 6% CAGR growth is expected to come from premiumisation and data monetisation. “Nonetheless, industry AGR performance in the past few quarters has shown organic growth (defined as AGR growth without tariff hike) can potentially sustain at much higher levels if operators execute better data monetisation,” ICICI Securities said. And when tariff hikes happen, it will only add to market share gains to Airtel. “Bharti is the biggest beneficiary of higher tariffs given the sticky and premium quality of its subscribers, ensuring that tariff hikes flow through to ARPU,” says J M Financial. In the near future, as 5G becomes mainstream, Airtel and Jio have more to gain, as 5G users are expected to consume more data — driving the sector towards more premiumisation. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div>

Airtel set to narrow the gap with Jio as telecom users go premium

<ul><li>One of India’s largest telecom operators has seen profit for the first time in at least two years.</li><li>A part of the 13% fall in average revenue per user (ARPU) was made up by the savings on access charges that <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword> would have to pay Vodafone Idea and Reliance Jio. </li><li>It will be interesting to see what the share market reacts to today, May 18 – a decline in ARPU or the first profit after many quarters.</li></ul>Airtel has been one of India’s top telecom operators for a long time now, but it has swung to profitability after at least two years. This is significant for the company as India alone contributes to over two-thirds of its consolidated revenue. The profit after tax (PAT) of ₹456 crore is the first positive figure after eight consecutive quarters of losses for Sunil Mittal’s company. Even if the exceptional (one-time) items and tax are removed, at ₹165 crore, this is the profit for the company since September 2017. <div type="image" title="Airtel PBT PAT Q4 FY21." msid="82714538" hostid="261" caption="&amp;lt;p&amp;gt;Airtel&amp;#39;s PBET and PAT over the last 5 years&amp;lt;/p&amp;gt;"></div> What makes this rebound to a green bottomline even more interesting is that Airtel’s average revenue per user (ARPU) has fallen by nearly 13%. Airtel’s ARPU in the preceding quarter was ₹166, which has now fallen to ₹145. Out of the total fall of ₹21, Airtel has reported that ₹20 is due to the abolishment of interconnect usage charges (IUC). IUC is the cost that one mobile operator pays to another operator for carrying calls. So, if you call from a Jio number to an Airtel number, Airtel would receive money from Jio for carrying the call. <div type="image" title="Airtel ARPU Q4 FY21." msid="82714576" hostid="261" caption="&amp;lt;p&amp;gt;Airtel&amp;#39;s average revenue per user over the last eight quarters&amp;lt;/p&amp;gt;"></div> However, just like Jio or Vodafone Idea paid Airtel to connect to its network, Mittal’s company had to pay them for those calls that went the other way. Therefore, it made up for some of that lost revenue in money saved in the access charges. That amounted to nearly ₹1,300 crore (nearly four times the net profit). Other income – refers to income derived from unrelated activities like interest, rent, sale of assets or anything that is not directly the main business of the company ⁠– also helped Airtel boost its bottomline by another ₹1,300 crore. Airtel’s share price has lost 4% in five straight days of decline ahead of the earnings. It will be interesting to see what the market reacts to today, May 18 – a fall in ARPU or the first profit in many quarters. Remember, the India business is worth more than two thirds of the revenue. <div type="image" title="Airtel 01_04_21 to 17_05_21." msid="82714617" hostid="261" caption="&amp;lt;p&amp;gt;Airtel share price since the beginning of April&amp;lt;/p&amp;gt;"></div> SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/mukesh-ambanis-reliance-jio-is-making-less-money-off-its-subscribers-than-it-did-12-months-ago/articleshow/82331233.cms">Reliance Jio is making less money off its subscribers than it did 12 months ago</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-adds-3-times-more-subscribers-than-reliance-jio-vodafone-idea-turns-positive-for-the-first-time-in-15-months/articleshow/81562851.cms">Airtel adds 3 times more subscribers than Jio while Vodafone Idea gets net addition first time in 15 months</a>

Airtel's India business is back in the black after a very long time

<ul><li>India’s second largest telecom company Bharti <keyword id="15491" type="General" weightage="20" keywordseo="Airtel" source="Orion">Airtel</keyword> is likely to be the biggest beneficiary of <keyword id="1553175" type="General" weightage="20" keywordseo="Vodafone-Idea" source="Orion">Vodafone Idea</keyword>’s troubles. </li><li>While Airtel already boasts of the industry-best average revenue per user (ARPU), thanks to higher quality subscribers, lower churn and higher consumption are now aiding the company’s bottom line. </li><li>Going forward, analysts have underlined why Airtel and not market leader Reliance Jio is expected to make the most out of Vodafone Idea’s troubles. </li></ul>India’s second largest telecom company Bharti Airtel is likely to be the biggest beneficiary of Vi’s troubles, regardless of whether the Indian telecom market continues to operate as it is today with three players or becomes a duopoly. Since Reliance Jio’s debut in 2016, the Indian telecom sector has seen a massive upheaval and consolidation. From nearly 9 active telecom companies in the private sector, only Jio, Airtel and Vodafone-Idea have active operations, and they account for 91% of India’s total subscriber base. While Vodafone Idea is struggling to retain its subscribers and cut down on losses, Jio and Airtel have consolidated their leads and expanded their market share over the past two years. Vodafone Idea’s market share has fallen from 24% at the end of March 2021 to just 20.7% two years later. Airtel<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q4-net-profit-jumps-50-yoy-to-3006-crore-beats-estimates/articleshow/100280246.cms"> reported</a> a 50% YoY jump in its Q4 net profit to ₹3,006 crore. Better quality subscribers, increasing consumption and lower churn helped the company shore up its bottom line during the quarter. “We are seeing lower churn and we are also seeing a growth in consumption,” said Gopal Vittal, chief executive officer and managing director, Bharti Airtel in a post-earnings call with analysts. For context, while Vodafone Idea lost nearly 1.96 million subscribers per month in FY22 and FY23, Airtel added an average of 0.8 million subscribers per month while Jio added 0.3 million subscribers per month. Net subscriber additions in FY22 and FY23 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY23 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Jio </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-18.8 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">26.1 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.3 million </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bharti Airtel </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.9 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.5 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.4 million </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vodafone Idea </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-22.9 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-24.0 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-46.9 million </td></tr></tbody></table> Source: <keyword id="6356988" type="General" weightage="20" keywordseo="TRAI" source="Orion">TRAI</keyword> Underlining Vodafone Idea’s steep fall is the fact that post the merger of Vodafone India and Idea Cellular in August 2018, the merged entity had 440 million subscribers. Fast forward to March 2023, its subscriber base has declined to 237 million, which is a decline of 203 million. The analysts at Macquarie Research say that regardless of what happens to Vodafone Idea, the outlook looks bright for Airtel, ahead of market leader Reliance Jio. <cmsannotation type="cmsannotation" annotationid="Airtel the biggest winner regardless of Vodafone Idea’s survival" comment="subhead" text="Airtel the biggest winner regardless of Vodafone Idea’s survival">Airtel the biggest winner regardless of Vodafone Idea’s survival</cmsannotation> With Vodafone Idea’s troubles not showing any signs of receding anytime soon, analysts at Macquarie Research believe that Airtel could end up being the biggest winner instead of market leader Reliance Jio, estimating the telco’s subscriber base, average revenue per user (ARPU) and ROIC. Return on invested capital, or ROIC, is a financial metric that measures a company’s ability to efficiently allocate assets to profitable ventures. Higher the ROIC, the better it is. “The incremental operating leverage at Bharti Airtel is much higher than Jio due to an already optimized cost structure at Jio and with finance charges set to catch-up and sticky depreciation &amp; amortization charges,” says Macquarie in its report, explaining why it expects Airtel and not Jio is expected to be the biggest winner regardless of what happens to Vodafone Idea. <cmsannotation type="cmsannotation" annotationid="The white knight" comment="subhead" text="The white knight">The white knight</cmsannotation> The first scenario involves the telco being bailed out via capital infusion and a growth in its ARPU to cover its liabilities over the next 10-15 years. In this scenario, while Jio and Airtel are not expected to gain much in terms of subscribers, Airtel’s higher incremental operating leverage than Jio puts it in a better position. As a result, its ROIC is expected to rise from existing 6% to 10-14% by FY27, while Jio’s ROIC is expected to rise from 7% to 7-10% in the same period. <cmsannotation type="cmsannotation" annotationid="The slow grind" comment="subhead" text="The slow grind">The slow grind</cmsannotation> If things don’t change and Vi is unable to raise funds and invest in its network, analysts expect the telco to continue losing subscribers and its market share falling to just 15% by FY30. In this scenario, Reliance Jio could expand its subscriber base to 500 million, followed by Airtel at 365 million and Vodafone Idea at 200 million. Airtel is expected to take the lead in two other critical metrics – ARPU and ROIC. Its ARPU is expected to rise to ₹250 by FY27, while Jio is expected to remain in the second place at ₹235. Airtel’s ROIC is expected to rise to 10-13%, with Jio once again in the second place at 7-10%. <cmsannotation type="cmsannotation" annotationid="Duopoly" comment="subhead" text="Duopoly">Duopoly</cmsannotation> Duopoly is the worst-case scenario for Vodafone Idea. If the telco winds down its operations, Jio and Airtel could gain in terms of subscribers as well as ROIC. In this case, Jio’s subscriber base could rise up to 585 million by FY27, with Airtel coming in second place at 455 million. However, Vodafone Idea’s exit could lead to even better ROIC for both Airtel and Jio, with Macquarie pegging Airtel’s ROIC to be in the range of 10-16%, while Jio is expected to remain in the second place with a ROIC of 8-12%. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/lic-shares-surge-over-3-after-it-posts-a-five-fold-jump-in-q4-net-profit/articleshow/100495712.cms">LIC shares surge over 3% after it posts a five-fold jump in Q4 net profit</a> <a href="https://www.businessinsider.in/stock-market/news/adani-enterprises-titan-eicher-motors-tata-motors-reliance-and-other-big-companies-performance-in-nifty-50/articleshow/100474408.cms">Big boys drive Nifty50’s revenue and profit growth in FY23</a> <a href="https://www.businessinsider.in/business/corporates/news/gqg-partners-rajiv-jain-doubles-down-on-his-adani-bet/articleshow/100450041.cms">GQG Partners’ Rajiv Jain doubles down on his Adani bet</a>

You Searched For "Airtel ARPU" and got 14 results

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Airtel's India business is back in the black after a very long time

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