Telecom competition takes a breather, may recharge Vodafone Idea
Vodafone Idea's financial health is set to get a much-needed boost from latest tariff increases and easing competitive intensity with analysts predicting the debt-laden telecom operator's average revenue per user (ARPU) to rise to ₹171-180 by this fiscal-end, from ₹143 in April.
Brokerage Citi Research projected rising revenues, operating income, capex, and narrowing losses for the telecom joint venture between India's Aditya Birla Group and UK's Vodafone Plc. «The peak of competitive intensity is now likely behind us, evidenced not just by the latest tariff action but also the recent spectrum auction,» Citi said in a report.
«With Jio taking the lead in initiating the latest round of tariff hikes, a shift in stance of the market leader towards monetisation is now clearly evident, which also improves visibility of future hikes,» it said, adding that last week's price increase were slightly ahead of market expectation in terms of both magnitude and timing.
Consequently, Citi expects Vi's ARPU to reach ₹171 in FY25, also factoring in a decline in subscriber loss from 213 million currently to 210 million in FY25.
Airtel, Jio, Vodafone Idea push long-term plans at old rates to retain users
Motilal Oswal Financial Services Ltd (MOFSL) forecast Vi's earnings before interest, tax, depreciation and amortisation (Ebitda) to grow at 17% compounded annually between FY24 and FY26, up from 4% during FY20-24. Revenue would grow at 11.5% in the same period.
Centrum Broking expects Vi's ARPU to touch ₹180
