Airtel Lost Least Subscribers, Posted Highest ARPU Growth: Charu Paliwal, Counterpoint Research

Bharti Airtel recently announced its Q3 FY22 results reporting an ARPU growth of almost Rs 10 to Rs 163 and a growth in the number of 4G subscribers. The telco has been able to grow its market share which is a plus point and expanded network to new parts of the country.

Highlights

  • Bharti Airtel lost the least number of subscribers in Q3 FY22 and posted the highest average revenue per user (ARPU) growth.
  • ICICI Securities in a note said that the Q3 FY22 performance is an inflexion point for Bharti Airtel.
  • Charu Paliwal said that the telco’s performance looks stable in terms of top line numbers as ARPU and EBITDA.

Follow Us

Airtel

Bharti Airtel lost the least number of subscribers in Q3 FY22 and posted the highest average revenue per user (ARPU) growth. The second-largest telco in the country added 3 million new 4G users while losing about 0.6 million subscribers from the total pool. This helped with improving the overall 4G users percentage in the subscriber base and also boosted the average revenue per user (ARPU) figure.




“In the mobile segment, Airtel lost 0.6 million total subscribers but added 3.0 million 4G subscribers. Improved mix of subscriber base (with 4G subscriber penetration of 61%) and prepaid tariff hike in November helped the operator to grow its ARPU by INR 10 over the preceding quarter. If compared to peers, Airtel lost the least no. of subscribers and posted the highest ARPU growth. The full impact of tariff hike in terms of SIM consolidation and improved ARPU will be realised in the next quarter,” Charu Paliwal, an analyst at Counterpoint Research, told TelecomTalk.

Top Line Numbers Look Good for Airtel

Paliwal said that the telco’s performance looks stable in terms of top-line numbers as ARPU and EBITDA (earnings before interest tax depreciation and amortisation); all key metrics are on a growth trajectory.

“The bottom line is still a miss with 2.8% YoY decline majorly due to jump in income tax expense and profit share of non-controlling interest.”

Q3 FY22 Performance an Inflexion Point for Airtel: ICICI Securities

ICICI Securities, in a note, said that the Q3 FY22 performance is an inflexion point for Bharti Airtel given the telco’s decisive revenue market share gain and organic deleveraging.

ICICI Securities noted the growth in the non-mobile business of the telco, including home services, Airtel Business, and Payments Bank. One of the surprising developments was the strong and steady performance from Airtel Africa.

The analysts at ICICI Securities have maintained a ‘Buy’ rating for Bharti Airtel on the back of market share gain and deleveraging. The target price has been set at Rs 850.

Reported By

Editor in Chief

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Recent Comments

Anonymous :

In line with Airtel's ?49 plan that offers 20GB of data for the same duration.

Jio Brings New Rs 49 Plan

SCKPA :

Airtel is claiming so many things. But at our location there have so many places where airtel 2g signal is…

REP: Airtel Expands Network Footprint in Bankura District of West…

Faraz :

Yes.. Corruption and arrogance is in the core of this organisation since beginning.. & Now even gov wants everything to…

BSNL's Operating Profits Signal a Positve Future

Mrs Mithilesh :

BSNL DoT aur ITS ka gulam hai, BSNL ke executives aur staff ki halat gulamo aur kutto se bhi battar…

BSNL's Operating Profits Signal a Positve Future

TheAndroidFreak :

Till BSNL doesn't make 5Mhz of band 1/28/8 live across country, it doesn't make sense. Vi is far better operator…

Vodafone Idea Tests Vi AirFiber with Multiple Partners

Load More
Subscribe
Notify of
3 Comments
newest
oldest most voted
Inline Feedbacks
View all comments