Religare expects telecom sector to report a 3-4% QoQ growth in wireless revenues led by subscriber additions, and a marginal improvement in ARPMs QoQ.
We expect our telcom universe to report a 3-4% QoQ growth in wireless revenues led by subscriber additions, and a marginal improvement in ARPMs QoQ. EBITDA margins for both Bharti-India and Idea could decline 60bps QoQ on higher network investments. For Bharti Africa, we build in a 1.6% QoQ US$ revenue growth but a 1.5% decline in INR revenues due to INR appreciation against US$. Commentary on voice usage outlook in the event of a weak monsoon, and data growth would be key monitorables. Fundamentally, we think the street is underestimating data capex, and current expectations already factor in a voice price uptick. Stay cautious.
We expect Bharti and Idea to report a 3-4% QoQ growth in Q1 India wireless revenues led by higher volumes. While data growth should remain robust, voice traffic growth for Bharti/Idea would moderate to 5.2%/7.6% YoY in the backdrop of a marginal pick-up in voice tariffs for both companies. Bharti-India/Idea may also see margin pressure due to higher network investments.
We expect Bharti Africa to register a muted 1.6% QoQ growth in US$ terms, partly due to adverse cross-currency movements (11%/2% appreciation in ZMK/TZS against US$). EBITDA margins should remain broadly stable sequentially at 24.3%. Tax rates are expected to remain high on account of withholding taxes.
We expect Bharti Africa to register a muted 1.6% QoQ growth in US$ terms, partly due to adverse cross-currency movements (11%/2% appreciation in ZMK/TZS against US$). EBITDA margins should remain broadly stable sequentially at 24.3%. Tax rates are expected to remain high on account of withholding taxes.
Key issues to watch for during Q1FY15 would be usage outlook, margin trends and data growth, and Bharti 's margin outlook for Africa. Further, management commentary on (a) usage elasticity, especially from rural customers, in the event of a weak monsoon and (b) monetisation of spectrum investments for data services, would be the key.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Anda sedang membaca artikel tentang
Telecom space may report 3-4% QoQ growth, says Religare
Dengan url
https://rokokkanker.blogspot.com/2014/07/telecom-space-may-report-3-4-qoq-growth.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Telecom space may report 3-4% QoQ growth, says Religare
namun jangan lupa untuk meletakkan link
Telecom space may report 3-4% QoQ growth, says Religare
sebagai sumbernya
0 komentar:
Posting Komentar