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Business News/ Industry / Telecom/  Telecom industry revenue up 16% in Q2; Airtel gains largest share, Vi sees loss

NEW DELHI: Adjusted gross revenues (AGR) of the telecom industry grew 16.4% year-on-year to 54,300 crore in the September quarter. Bharti Airtel gained the most, with its revenue market share up 83 basis points (bps) sequentially to 36.3%, while Vodafone Idea (Vi) continued to lose more ground. 

“The benefit of premiumisation has been limited while subscriber growth has returned post SIM consolidation. The Q2FY23 annualised revenue stood at 2.17 trillion and AGR was 1.9 trillion for FY22. Industry gross revenue was up 3.1% on-quarter and 21% on-year to 61,600 crore," ICICI Securities said in a note on Friday.

According to analysts ICICI Securities, Airtel has grown faster in metros and A circles, when compared with Reliance Jio, driven by higher postpaid subscriber additions, and better monetisation of data usage. Vodafone Idea’s AGR market share fell 20bps to 17.5% on underperformance in leadership circles.

Airtel’s AGR rose 4.0 on quarter and 17.7% on year to 19,700 crore, expanding 41bps on year, with its incremental AGR on quarter at 760 crore versus 660 crore for Reliance Jio. A circle-wise analysis shows Airtel grew significantly faster in metros at 10% on quarter and 5.7% in A circles, even as growth was slower in B and C circles at 2.6% and 2% on quarter, respectively.

According to ICICI Securities, Uttar Pradesh east, Uttar Pradesh west, Bihar and Madhya Pradesh circles under performed. It said that Airtel’s gross revenue-based market share of 38% was equal to Jio’s even when there was a gap of 510bps between their AGR market shares, in favour of Jio.

Vodafone Idea’s AGR-based market share fell to 17.5% down 20bps on quarter but increased 9.7% on year to 9,500 crore. “Growth in leadership circles was slower at 0.9% on-quarter due to dip in on-quarter revenue in UP east (down 11.2%), MP (down 3.6%) and Maharashtra (down 0.6%)," analysts at the firm said. Growth in established circles was relatively faster at 3.2% on-quarter while that in others increased by 2.9%, analysts added.

In comparison, Jio’s AGR rose 3% on quarter and 20.1% on year to 22,500 crore, leading to a market share of 41.4%, up 56bps on quarter.

“AGR growth has been relatively higher in metros at 3.3% on-quarter and A’ circles at 4.4% on-quarter; however, they have grown significantly slower compared to Bharti in the same circles. B and C circles AGR rose at 2.3% and 2.6%, respectively," analysts said.

In circle-wise analysis, RJio lost market share in eight circles and under-performed in a few circles, namely Delhi, Tamil Nadu, Rajasthan and Madhya Pradesh. It also showed significant pick-up in AGR in Karnataka circle, which has been a stronghold of Airtel, up 10.4% on-quarter and 36.9% on-year.

Reliance Jio’s market share based on gross revenue has been close to 38% for the past five quarters, while Airtel has also gained under the same parameter.

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Gulveen Aulakh
Gulveen Aulakh is Senior Assistant Editor at Mint, serving dual roles covering the disinvestment landscape out of New Delhi, and the telecom & IT sectors as part of the corporate bureau. She had been tracking several government ministries for the last ten years in her previous stint at The Economic Times. An IIM Calcutta alumnus, Gulveen is fluent in French, a keen learner of new languages and avid foodie.
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Updated: 09 Dec 2022, 05:21 PM IST
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