Disappointing figures hit Bharti Airtel shares
Also Bharti still faces high regulatory risks, with need for further spectrum payments and reforming at a time when ROCE (return on capital employed) is a low 6%. Meanwhile, post a 20% rally, stock trades at 30x PE (price-to-earnings ratio) and 7x Ebitda for FY14CL. With 9% downside to our target, we have downgraded the stock from UPF to SELL. I
India mobile RPM dropped; traffic up 2.8% QoQ after 2.1%fall: Bharti Airtel’s Q3FY13 pre-exceptional consolidated revenue was up 3% QoQ and Ebitda increased 1% QoQ, while PAT plummeted 41% QoQ. The reported previous quarter included R5.9 bn one-time income in respect of prior-period interconnect agreements. In Q3, which is seasonally strong, India mobile network traffic was up merely 2.8% QoQ after falling 2.1% QoQ in the previous quarter and despite active subscribers rising 350bps to 95%. RPM (revenue per minute) was marginally down to Rs0.43 and voice RPM dipped 1% QoQ to R0.352. With a loss of 4m subscribers to now 182m, reported minutes of use (MoU) rose 4% QoQ
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