Telecom Stocks Outlook for the week – 24 to 28.07.2017
Telecom Stocks Outlook for the week – 24 to 28.07.2017
( www.rupeedesk.in )
Stocks of Bharti Airtel Ltd and Idea Cellular Ltd are seen falling further next week after Reliance
Industries Ltd Chairman Mukesh Ambani announced an "effectively free" Jio phone for its
customers. Reliance Jio Infocomm Ltd will provide unlimited data usage for 153rupees per month
on Jio phones, Ambani said. The company will start trial runs for the phones on Aug 15, and open
pre-booking on Aug 24. The handsets will be available at a one-time refundable deposit of 1,500
rupees. We expect this move to further impact average revenue per user for incumbent operators in a
sector, which is already reeling under a mountain of debt and witnessing pressure on margins. We
expect further down-trading to happen on incumbents. Bharti Infratel and Bharti Airtel will announce their earnings on Monday and Tuesday, respectively. Bharti Airtel's consolidated earnings before interest, tax, depreciation, and amortisation from India operations are expected to fall 6.6% on quarter to 63 bln rupees in Apr-Jun, Idea Cellular, too, could see its consolidated EBITDA fall 13% on quarter to 19 bln rupees in Apr-Jun. The pressure on the sector after the entry of Reliance Jio in September has also triggered consolidation among operators. Vodafone India Ltd and Idea Cellular have announced a merger, which is pending regulatory approvals. Bharti Airtel, too, has announced two separate acquisitions, of Tikona Digital Networks Ltd and the Indian arm of Norway's Telenor ASA. ICRA, in a recent report, said it continues to hold a negative outlook for the sector, which will keep facing headwinds due to competition and the industry revenue is expected to come down to 2.4 trln rupees for 2017-18 (Apr-Mar). Taking cognisance of the pressure, the government has set up an
inter-ministerial panel to recommend ways to improve the financial health of the sector. The panel
has met operators and banks, and is expected to come out with its report soon.
Source : Cogencis Information Services Ltd.
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Telecom Stocks Outlook for the week – 24 to 28.07.2017
( www.rupeedesk.in )
Stocks of Bharti Airtel Ltd and Idea Cellular Ltd are seen falling further next week after Reliance
Industries Ltd Chairman Mukesh Ambani announced an "effectively free" Jio phone for its
customers. Reliance Jio Infocomm Ltd will provide unlimited data usage for 153rupees per month
on Jio phones, Ambani said. The company will start trial runs for the phones on Aug 15, and open
pre-booking on Aug 24. The handsets will be available at a one-time refundable deposit of 1,500
rupees. We expect this move to further impact average revenue per user for incumbent operators in a
sector, which is already reeling under a mountain of debt and witnessing pressure on margins. We
expect further down-trading to happen on incumbents. Bharti Infratel and Bharti Airtel will announce their earnings on Monday and Tuesday, respectively. Bharti Airtel's consolidated earnings before interest, tax, depreciation, and amortisation from India operations are expected to fall 6.6% on quarter to 63 bln rupees in Apr-Jun, Idea Cellular, too, could see its consolidated EBITDA fall 13% on quarter to 19 bln rupees in Apr-Jun. The pressure on the sector after the entry of Reliance Jio in September has also triggered consolidation among operators. Vodafone India Ltd and Idea Cellular have announced a merger, which is pending regulatory approvals. Bharti Airtel, too, has announced two separate acquisitions, of Tikona Digital Networks Ltd and the Indian arm of Norway's Telenor ASA. ICRA, in a recent report, said it continues to hold a negative outlook for the sector, which will keep facing headwinds due to competition and the industry revenue is expected to come down to 2.4 trln rupees for 2017-18 (Apr-Mar). Taking cognisance of the pressure, the government has set up an
inter-ministerial panel to recommend ways to improve the financial health of the sector. The panel
has met operators and banks, and is expected to come out with its report soon.
Source : Cogencis Information Services Ltd.
