Airtel, Idea, Rcom are not going to be happy with their revenues, thanks to Reliance Jio

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The affect of freebies offered by Mukesh Ambani-led Reliance Jio is going to show in the quarter results of Airtel, Idea and Reliance Communications.
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The top telecom players are likely to report lower earnings in January-March and also post a fall in monthly Average Revenue Per User (ARPU).

Industry experts suggest the data and voice packs offered by Reliance Jio will hit the top players hard. Bank of America-Merrill Lynch is of the opinion that the full impact of Jio's free offering and existing consumers of Bharti and Idea down-trending to lower packs will be witnessed in the quarter ended March.

“This implies a 6-6.5% decline in cellular revenue for Airtel/Idea from the previous quarter and a 398/540 basis points drop in India cellular Ebitda (earnings before interest, tax, depreciation and amortisation) margins from October-December,” the brokerage told ET.

Credit Suisse expects Airtel to register nearly 45% on-year drop in net profit to Rs 720 crore (from Rs 1,290 crore last year).

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Idea Cellular may report its second successive quarterly loss and RCom is expected to report an on-year net loss in the range of Rs 723 crore to Rs 810 crore.

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