Bharti Airtel reports stable performance with relatively better subscriber stickinessBHARTIARTL - 913 Change: 2.30 (0.25 %)
News: Airtel's Q3FY22 topline performance was largely in line with partial tariff hike benefits flowing in wireless business revenues. Consolidated topline was at Rs.29,867 crore, up 5.4% QoQ with Africa revenues up 6% QoQ at Rs. 9105 crore and Indian wireless revenues were up 5.9% QoQ at Rs.16,092 crore, led by partial pass through of tariff hike driven higher ARPU that was at Rs.163, up 5.9% QoQ. Overall margins at 49.2%, up 47 bps driven by Africa margins at 49.6%, up 100 bps QoQ. India wireless margins was at 49.4% (up 20 bps QoQ). Reported net debt (excluding lease liability) was at ~Rs.1.24 lakh crore (down by ~Rs.7434 crore QoQ) aided by healthy FCF.
Views: Airtel continues to report a stable performance on the Indian wireless business front with better KPIs in terms of subscribers' quality. Overall sub base saw a decline of ~0.56 mn QoQ at 322.9 mn but was much lower in contrast to its peers Jio, VIL which lost 8.5, 8.2 mn subs, respectively, in Q3FY22. Favourable industry structure of three players (two being strong), government relief, tariff hike and fund raise puts Airtel in sweet spot to maintain its relative strength among peers with a formidable digital ecosystem offering.