Data Growth May Offset Expected Weak Q2 For Airtel,Idea & RCom
Although strong data growth is likely to partially compensate this loss.
The second quarter of the financial year is considered weak. Reason? Fewer calls are made during the period in the absence of major festivities in the country.
Some analysts observed, total wireless revenue may stay flat. The anticipated 2.6 per cent-to-three per cent decline in voice revenue is tipped to be neutralised by a seven per cent sequential growth in non-voice revenue, especially data, they said.
Morgan Stanley expects India’s top listed mobile carriers-Bharti Airtel and RCom-to report a sharp contract in traffic by 9 billion minutes for the former and 1 billion minutes for later.
Seasonal impact will be more pronounced on Idea (which stands at number 3) due to higher exposure to rural areas as customers there typically spend less in the second quarter.
Kotak Institutional Equities estimates Bharti’s and Idea’s wireless margins to decline sequentially by 90 bps and 170 bps, respectively.