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Tuesday, May 31, 2022

Revenue of Big 3 telcos may grow robustly by 20-25% in fiscal 2023: CRISIL :-ET

 


NEW DELHI: The revenue of the Big 3 telcos—Reliance Jio, Bharti Airtel and and Vodafone Idea—may rise by 20-25% in fiscal 2023, on the back of the tariff hikes taken late last year, ratings agency Crisil said in a report.

“In fiscal 2023, ARPU (average revenue per user) should grow 15-20% due to the full-year impact of tariff hikes in fiscal 2022 and fiscal 2023 (anticipated in the second half). However, this will be partially offset by the ‘downtrading’ of recharges,” the ratings agency said in a research note released Tuesday.

Telecom operators are also expected to spend incrementally on networks and regulatory capex in fiscal 2023, which may impact the ARPU growth, and tariff hikes “could ease some pressure”.


“As a result, revenue of the top three players is expected to grow a robust 20-25% this fiscal. Earnings before interest, tax, depreciation, and amortisation) is seen expanding 180-220 bps for the year,” Crisil said.


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