The January-March 2010 quarter may reflect subdued growth for telecommunication operators with more subscribers going in for aggressive tariff plans offered by new entrants.
Profits for Bharti Airtel, Reliance Communications and Idea Cellular are expected to fall between eight and 55 per cent on a year-on-year basis.
According to the estimates of four brokerage firms, Bharti Airtel may report an 8.57 per cent dip in net profit at Rs 2,081 crore with RCom and Idea likely to post steeper falls of 50.3 per cent (to Rs 713 crore) and 54.57 per cent (to Rs 123 crore) each.
Mr Nishna Biyani, an analyst with Prabhudas Lilladher Securities, said in a recent report that the Q4 numbers would reveal the full impact of migration of subscribers to new tariff schemes of ‘per second billing' and ‘pay per call'.
price war
In Q4, new telecom operators such as MTS and Uninor extended the price wars with 30 paise per minute plans which led to many cases of multiple number ownerships and churn rates.
“Although subscriber growth is robust, we believe that a large part of it is coming from multiple SIM ownership which would not translate into incremental revenue growth for the operator,” Angel Broking analysts, Mr Rahul Jain and Ms Vibha Salvi, said.
Revenue per minute (a key measurable in the telecom industry) is expected to fall by five to six per cent, resulting in largely flat quarter-on-quarter revenues for Bharti Airtel and RCom.
“We expect Idea to post sequential revenue growth of up to five per cent, driven by higher traffic growth, and a 230 basis points positive impact of the 100 per cent consolidation of acquired ‘Spice' circles for one month versus 41 per cent earlier,” said Mr Shobit Khare, Analyst with Motilal Oswal Securities.
(In June 2008, Idea had agreed to acquire 40.8 per cent stake in Spice Communication at Rs 77.30 per share)
To know more pl. read..Telecom operators.....
Telecom operators income decling for 4th quarter.
No comments:
Post a Comment