MOSL: BHARTI AIRTEL (Buy)-Some improvement seen, but recovery still some time away
Bharti Airtel: Some improvement seen, but recovery still some time away
(BHARTI IN, Mkt Cap USD21.2b, CMP INR364, TP INR470, 29% Upside, Buy)
- EBITDA in line with est.: Consol. revenue grew 2% QoQ (-9% YoY) to INR200.8b (in-line). Yet, consol. EBITDA declined 3% QoQ (-13% YoY) to INR67.3b (in-line), dragged by India wireless, Enterprise and Passive infra businesses, with the margin contracting 180bp QoQ to 33.5%. However, ~8% QoQ growth in Africa biz EBITDA provided some support. PAT grew 17% QoQ (-74% YoY) to INR973m (est. of -INR660m). Adj. for exceptional items, net loss was at INR1.7b.
- India wireless business impact subsides; Africa earnings improving: India wireless revenue witnessed a turnaround. Growth, however, was marginal at 1% QoQ to INR104.8b (in-line), as ARPUs decline of 6% to INR109 (adj. for Telenor subs base) partly offset the contribution from the Telenor biz. EBITDA fell 6% QoQ to INR27.6b (8% beat) due to high network cost. Data subscribers increased by 8.7m to 94.8m and broadband subscribers by 9.1m to 85.7m. Africa saw healthy revenue/EBITDA growth of 6%/8% QoQ to INR52.8b/19.2b.
- Concall highlights: 1) Targets to have ~2m incremental FTTH home-passes in FY19. 2) FTTH business to face short-term pain. Expect investments to be stepped up. 3) Capex guidance of ~INR270b is maintained.
Bharti Airtel provides telecommunication systems and services to individuals and businesses in India with operations in 20 countries across Asia and Africa. In India, Co.'s product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Co. had nearly 287 million customers across its operations at the end of Dec 2013.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.