Telecom Q2 Results Preview - Margins May Jump On Lower SUC; Steady Revenue Growth: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Q2 FY23E estimate for telcos suggest steady mobile revenue growth aided by one additional day and subscriber growth for Bharti Airtel Ltd. / Reliance Jio. Vodafone Idea Ltd. subscriber base continues to shrink. 4G net add has decelerated for Airtel / Vodafone Idea which means lower benefit of premiumisation. Revenue growth QoQ for Airtel (mobile) / Vodafone Idea and RJio likely at 2.2% / 1.5% and 3.2%, respectively. Vodafone Idea’s marketing aggression has increased in the past few months which is helping it narrow revenue growth gap versus peers, thus, lower benefit of market share gains for Airtel / RJio in Q2 FY23E. We expect Ebitda margin expansion for mobile operators due to negligible spectrum usage charges for part quarter. SUC was 3-3.5% of adjusted gross revenue which has reduced to negligible on the purchase of spectrum in July-22 auction; full benefit of low SUC will likely reflect in Q3 FY23E. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Telecom Q2 Results Preview - Margins May Jump On Lower SUC; Steady Revenue Growth: ICICI Securities

We expect Ebitda margin expansion for mobile operators due to negligible spectrum usage charges for part quarter.

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