April 13, 2018 / 5:19 AM / 3 months ago

BUZZ-Indian telecom industry revenues to dip 9 pct in FY19 - Deutsche Bank

** Telecom industry revenues to decline by 9 pct to $21.6 bln in FY19 as incumbents continue to calibrate offers to match plans of Reliance Industries Ltd’s telecom unit, Jio - Deutsche Bank (DB)

** DB says it expects the to-be-merged entity of Idea Cellular Ltd and Vodafone Group’s India unit to have 37 pct revenue share in FY20, Bharti Airtel Ltd 36 pct and Reliance Jio 25 pct

** DB cuts PT for Bharti Airtel to 475 rupees from 595 rupees and to 105 rupees from 130 rupees for Idea Cellular

** Says Bharti Airtel and Idea trade at FY20E EV/EBITDA of 6.0x and 7.4x, below their long-term levels leaving room for valuation catch-up on earnings recovery

** DB forecasts Bharti Airtel’s consolidated revenue to achieve a three-year CAGR of 9.7 pct, driven by 11.9 pct and 3 pct growth in India and Africa businesses, respectively

** Says Bharti Airtel’s expected growth in India is largely driven by the exit of most weak players from Jio’s entry and that Bharti has been at the forefront of buying these assets at distressed valuations

** Adds Bharti Airtel’s robust spectrum portfolio and growth in 4G data will continue to aid its cost leadership in India

** Says market continues to underestimate the to-be-merged merged entity’s market position

** Bharti Airtel shares rise as much as 1.6 pct, while Idea shares recover from early falls to trade 1 pct higher

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below