Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
Bharti Airtel, Idea Cellular and Reliance Communications may report robust net profit growth in the three months ended December as subscribers made more calls and used more of their pricey data services, analysts say.
Sequentially, all three companies are expected to report flattish voice revenue per minute, but an increase in call minutes is likely to drive revenue growth in the October-December quarter, they say. Robust revenue growth from data amid reduced competition has been a big plus for the sector, with pricing power returning after several quarters of tariff wars.
Sector watchers expect margins to improve by about 20-30 bps due to reduced diesel prices and operating leverage, but accelerated network expansion and the associated increase in network operating expenditure will take away some of the benefits.
“The three incumbents continue to gain share of hi-speed wireless broadband subscribers as data consumers in India continue to vote in favour of quality over price. This is a critical difference versus the voice market,” Kotak Institutional Equities said in a report. Original post at ET Telecom