Airtel to see 8-10% revenue growth over next 12-18 months: Moody’s

Bharti Airtel, India’s leading telecom carrier will have a revenue growth of 8-10 percent over the next 12-18 months on strong demand for data services and affordable smartphones, Moody’s Investors Service said in its outlook for the Asia Pacific telecommunications industry.

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Bharti and Vodafone are increasing their 4G capex spending ahead of the 4G launch of Mukesh Ambani-owned Reliance Jio, Moody’s said, adding that the capex of these incumbent telcos for the current year will increase on upfront payments related to March 2015 spectrum auctions. Moody’s expect Bharti Airtel’s adjusted capex/revenue to peak to about 40 percent in 2015 from 28.4 percent in 2014, and then to decline to a more normalised level of around 24-25 per cent in 2016. The firm also said that Reliance Communications (RCOM) capex will decline once its network-sharing agreements with Reliance Jio start kicking in by mid-2016.

Moody’s Investors Service said its outlook for the telecommunications industry in Asia Pacific over the next 12-18 months is stable, reflecting the sector’s revenue growth from data services, steady EDITDA levels and strong liquidity profile.

“The average revenue of Moody’s-rated telecommunications companies in Asia Pacific will increase by 3%-4% year-on-year over the next 12-18 months, similar to the 3.8% growth seen in 2014, and trending in line with Moody’s forecast average GDP growth for the region,” Nidhi Dhruv, a Moody’s Assistant Vice President and Analyst, said in a statement.

Moody’s report said that over the next 12-18 months, revenue growth rates will register 1%-2% in developed markets such as Singapore, Australia, Japan and Korea. By contrast, emerging markets such as China, India, Thailand and Indonesia will see growth rates of 5%-6%.

“As for aggregate adjusted EBITDA, the result will remain stable in 2016 as against levels seen in 2014, but average EBITDA margins will decline marginally. Leverage will remain at current levels, because of higher capital spending on 3G/4G network improvements, but liquidity will remain strong,” Dhruv added.

The slower growth in developed economies reflects the maturity and high tele-density of these markets, while the higher growth in emerging markets will be driven by increasing smartphone penetration and data consumption, the report said.

Also read: Reliance Jio to be the leading 4G player by 2019-2020: Report

The report further added that the companies’ revenue growth will remain broadly in line with their home countries’ GDP growth rates, given the domestic focus of their businesses.

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18 Comments on "Airtel to see 8-10% revenue growth over next 12-18 months: Moody’s"

 

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Madhan Kumar
November 3, 2015 6:25 am 6:25 AM

FraudTel’s daddy Google has got our Indian govt permission to do testing for it’s Project Loon with BSNL!

Ak92774
November 2, 2015 11:06 pm 11:06 PM

Within next 8 months Airtel will be installing 8000 new towers( 2G,3G N 4G)in karnataka. And already the company has started modernising existing towers in Bangalore city. In 1 month ppl can experience the change

js
November 4, 2015 7:37 am 7:37 AM

How do u know that because I am finding the network is becoming worsened day by day. I am planning to port my families 3 Airtel number to some other operator. Since I am using bsnl as primary number I will go for some other operator. Waiting for reliance jio.

js
November 2, 2015 5:41 pm 5:41 PM

Such a pathetic 3G in Bangalore and I don’t how customers still going for Airtel. The effect of ad in brand building is very well proved in the case of Airtel. In India even poison can be marketed as energy drink through ads.

Madhan Kumar
November 2, 2015 7:29 pm 7:29 PM

+Infinity!

idea88
November 3, 2015 9:22 am 9:22 AM

Customers are king while doing anything . Choose wisely

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