Airtel leads peers in revenue market share gains in Q3
Premium- Brokerages have backed Airtel as the prime gainer of sector revenue growth expected from the tariff hikes
NEW DELHI : Bharti Airtel Ltd gained more revenue market share than Reliance Jio Infocomm Ltd and Vodafone Idea Ltd in the quarter ended 31 December, according to brokerage firms analysing industry revenue data from the telecom regulator.
Brokerages have backed the Sunil Mittal-led carrier as the prime gainer of sector revenue growth expected from the tariff hikes in the coming quarters, with the possibility of an upward rating revision.
The second largest telecom service provider’s shares rose to 35.4%, higher by 90 basis points (bps) sequentially and 350 bps on-year, said ICICI Securities in a note to clients, adding that Bharti’s adjusted gross revenue including revenue from national long-distance services was up 21.5% on-year and 7.2% on-quarter, to ₹16,900 crore.
“Its incremental market share in the past one year has been ₹2,980 crore versus ₹1,940 crore for RJio, partly due to low base for Bharti. Nonetheless, Bharti has been steadily gaining market share which shows its incremental AGR has been higher than existing share," analysts at the firm said.
“Bharti gained 90bps market share reaching 34.9%, its highest ever," said analysts at Motilal Oswal.
Brokerage CLSA said in a note to clients that RJio’s revenue market share in the nine months ended 31 December 2021, was up 80 bps to 39.4% while Airtel’s share gains were higher at 320bps and 34.8%. In the same time period, Airtel reported 24% on-year revenue growth, while RJio reported 15% but Vi’s revenue growth reduced by 2%.
“Prepaid tariff hikes by all operators will further grow sector revenue in 4QFY22. Bharti, with 4G penetration at 61% of its own mobile subscribers, is our sector pick," the firm noted.
MINT PREMIUM See All
ICICI Securities added that Bharti had broad-based performance in Q3FY22 with only four circles—Gujarat, Haryana, UP West, and Bihar - growing slower than the respective circle’s industry growth. The carrier grew 10% sequentially in the Metro and A circles gaining 150 bps, faster than B and C circles, adjusted for the spectrum sale payout to RJio in 2QFY22, said analysts at MOSL. Brokerages have backed Airtel, among peers, as the prime gainer of sector revenue growth expected from the tariff hikes in the coming quarters.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!