Airtel Will Climb to Rs 200 ARPU Level Only When This Happens

In Q4 FY22, Bharti Airtel’s performance and growth was robust as the telco outperformed its peers including Jio and Vodafone Idea. The telco’s mobile revenues grew 16% while Jio’s mobile revenues went up by only 11.6%. Airtel’s higher tariffs and a strong brand recognition helped the company in acquiring and retaining high paying customers.

Published by
Tanay Singh Thakur

Bharti Airtel

Bharti Airtel, the second-largest telecom operator in India reported its ARPU (Average Revenue Per User) figure to be Rs 178 in Q4 FY22. The company’s management has reiterated that the short-term goal is to reach Rs 200 ARPU level and in the long run, the company is eyeing for Rs 300 ARPU level.

Since the ARPU currently stands at Rs 178, reaching Rs 200 doesn’t seem too far-fetched for Airtel. ICICI Securities in a note said that Airtel can reach Rs 200 ARPU level, but for that, it needs another round of tariff hikes. Further, the analyst said that the next tariff hike is possible in FY23.

This doesn’t sound very surprising as Airtel has said before that it won’t shy away from hiking tariffs within a year again. The last tariff hikes came around December 2021, after a gap of two years. This time the telco doesn’t want to wait that long. Thus, reaching and crossing the Rs 200 ARPU level seems like an easy milestone for the company.

Of course, with Airtel hiking tariffs, Vodafone Idea would also follow. It will be interesting to see whether Jio would follow or focus on reaching the 500 million customer figure first.

ICICI Securities has maintained a ‘Buy’ rating on Airtel’s stock and revised the target price to Rs 812 from Rs 850 earlier.

Airtel Outperformed Peers in Q4 FY22

In Q4 FY22, Bharti Airtel’s performance and growth was robust as the telco outperformed its peers including Jio and Vodafone Idea. The telco’s mobile revenues grew 16% while Jio’s mobile revenues went up by only 11.6%. Airtel’s higher tariffs and strong brand recognition helped the company in acquiring and retaining high paying customers.

Airtel’s non-mobile business also performed quite well during the quarter. All its subsidiaries including Airtel Payments Bank, Airtel Digital TV, and more saw strong growth in business and revenues. This will help Airtel with generating more free cash flows and enable the telco in deleveraging fast.

The strong financials also put Airtel in a great position ahead of the 5G spectrum auction which would involve thousands, if not lakhs of crores.

Tanay Singh Thakur

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.

Share
Published by
Tanay Singh Thakur

Recent Posts

Apple to Bring New Kind of iPhone this Year, What You Should Know

The iPhone 14 series is reportedly set to launch next month, based on rumours and…

Lenovo Legion Y70 Features Confirmed Ahead of Launch

Lenovo Legion Y70 is expected to debut in China on August 18. In the lead-up…

Tecno Camon 19 Pro 5G Launched in India: Specs and Price

In India, the Tecno Camon 19 Pro 5G was unveiled on Wednesday. According to Tecno,…

Airtel Africa Announces $125 Million Credit Facility with Citi

Airtel Africa, a leading telecom service provider in the African continent with a presence in…

Private 5G Networks in India: DoT Assessing Enterprises Demand Up to September 9

India is all set to become a nation with live commercial 5G networks. One part…

Siemens Consortium Gets Signalling and Telecommunications Order for Kolkata Metro

Siemens Consortium, which includes Siemens Limited India and Siemens Mobility GmbH, has secured an order…

Snapchat+ Arrives in India for Rs 49 Per Month: Check Top Premium Features

Snapchat, a globally popular social media application, has announced a premium subscription for the Indian…

Vodafone Idea to Help You Prepare for Railways Group D Exams

Vodafone Idea (Vi), the third-largest telecom operator in India, is trying to educate Indians and…

Smartphone Updates: ColorOS 13 Launch Date and OnePlus Ace Pro Launched

ColorOS 13 is going to be the next generation OS (operating system) for Oppo smartphones.…