Bharti Airtel Shares Gain After Nigeria Suspends Telecom Excise
Nigerian President Bola Tinubu suspended taxes that were introduced two months ago on telecommunications services.
Shares of Bharti Airtel Ltd. advanced on Friday after Nigeria suspended its excise on telecom services.
Nigerian President Bola Tinubu suspended taxes that were introduced two months ago on telecommunications services, according to a Bloomberg report.
The suspension is part of a larger move to “address business unfriendly fiscal policy measures and multiplicity of taxes”, according to Dele Alake, spokesman of the president.
Airtel's Africa business accounted for 31% of its overall portfolio in the fourth quarter of FY23, according to a company statement. Within the 14 countries it is operating in throughout the continent, Nigeria is among its most profitable businesses. Airtel has close to 26% market share in the country and is the third-largest telecom operator there.
Shares of Bharti Airtel gained 0.48% to Rs 873.85 apiece, compared to a 0.15% decline in the NSE Nifty 50, as of 10:30 a.m.
Total traded volume stood at 9.7 times its 30-day average.
Out of the 32 analysts tracking the company, 28 maintain a 'buy' rating, one recommends a 'hold' and three suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 6%.
