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    Bharti Airtel Q2 results preview: Net loss expected for the first time in 15 years

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    Bharti Airtel Q2 results preview: Net loss expected for the first time in 15 years

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    Telecoms major Bharti Airtel will report its second-quarter earnings on Thursday and the Sunil Mittal-led company is likely to post a loss for the first time in 15 years. 

    Telecoms major Bharti Airtel will report its second-quarter earnings on Thursday and the Sunil Mittal-led company is likely to post a loss for the first time in 15 years. 
    • The India business is getting hit hard on account of competition while Africa has been on a turnaround path. The consolidated revenue growth is expected to be marginally higher because on one hand, there are India revenues which are expected to be lower by 3 percent but it will be offset by more than 6 percent increase in the Africa business’s revenues.
    • With respect to margins, consolidated margins will be lower on a sequential basis and that is because the India business is expected to see a fall of close to about 300 basis points (bps) plus in their EBITDA margins. So even while Africa continues to show an improvement in the margins, the net-net impact will be on the margins.
    • CNBC-TV18’s poll is throwing up a loss of about Rs 825 crore. For the India business, it is expected to be a weak quarter because it is seasonally weak, there is a full impact of Jio’s entry into the postpaid market, the Jio’s Monsoon Hungama offer and plus there is a downtrading of the average revenue per user (ARPU), people are opting for cheaper packs which are in the market. Which is why, the ARPU for Bharti is expected to now come down to Rs 99-100.
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