Telecom Q3 Results Preview - Revenue Growth To Decelerate; Costs To Rise On 5G Rollout: ICICI Securities

Our Q3 estimates suggest a deceleration in mobile revenue growth across telcos due to SIM consolidation, absence of tariff hikes.

<div class="paragraphs"><p>A female looking at her mobile phone. (Photo: Artem Beliaikin/ Unsplash)</p></div>
A female looking at her mobile phone. (Photo: Artem Beliaikin/ Unsplash)

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

Our Q3 FY23 estimates suggest a deceleration in mobile revenue growth across telcos due to SIM consolidation, lower benefit of premiumisation from slowdown in 4G net add, and absence of tariff hikes.

Subscriber base for Bharti Airtel Ltd. and Vodafone Idea Ltd. is likely to shrink while Reliance Jio’s net sub add (up 5 million) may moderate.

Revenue growth QoQ for Airtel (mobile), Vodafone Idea and RJio is likely at 1.8%, 0.1% and 1.5% respectively. We expect Ebitda margin expansion for the operators due to negligible spectrum usage charges.

SUC earlier was 3-3.5% of adjusted gross revenue, but is now negligible on the purchase of spectrum in July 2022 auctions. Full benefit of low SUC is likely to be reflected in Q3 FY23E. This could be offset by higher network operating costs on rollout of 5G network.

However, impact of 5G spectrum purchase on amortisation and interest cost will be negligible.

Click on the attachment to read the full report:

ICICI Securities Q3FY23 Telecom Preview.pdf
Telecom Q3 Results Preview - Steady Growth Expected: Prabhudas Lilladher
BFSI Q3 Results Preview - Improving Credit Growth, NIM Trajectory To Aid Profitability: ICICI Securities
Automobiles Q3 Results Preview - Post-Festive Demand Scenario Weak For Two-Wheelers, PVs: Prabhudas Lilladher
Capital Goods Q3 Results Preview - Healthy Execution; Expected Margin Revival: Prabhudas Lilladher
Banks, Insurance Q3 Preview - Earnings Progression On Track: Motilal Oswal
FMCG Q3 Results Preview - Slow Pace Of Earnings Recovery In Staples: Motilal Oswal


This 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.