The Bharti Airtel Analyst call is on and here is a quick share of management views on various topics.
- Many Questions on decline in MoU – The management is of the view that as 52% of its customers are now coming from rural India where MoU is significantly lower, the small drop in overall number is manageable. Multiplicity of SIM cards due to Freebies by launch of GSM services by new operators did impact to small extent. However, the customer is likely to come back to Airtel after the Freebies end.
- Impressive Margins due to higher productivity and efficiencies across the board. DTH / Digital TV and Sri Lankan Operations data will be provided from next quarter – July-2010.
- USD 2.2 bn standalone CAPEX for the forthcoming FY-2010
- Dividend Policy – Company has reached a stage that there is nothing to worry and share holders dividends will be an on-going process
- m-Commerce – Airtel’s Sanjay Kapoor is on a Jihad mission to encash on the opportunities by Banking the Unbanked [Mobile Banking]and is putting a great efforts in the same. However, he clearly dismissed this effort to contribute to the bottomline within the next 12 months and could take anything between 18-24 months.
- Infratel – [Indus + Bharti] They together are likely to be Neutral to Positive in the consolidated Numbers for Bharti Airtel in FY-2010. Passive Infrastructure is based without any bias and discrimination to operators. Company is negotiating with new players and no further details were divulged specifically, to a question on Voadafone’s gain 🙂
- Take on Metro + A Circle – Airtel continues to gain Revenue market share in these circles and is still growing. Overall, Airtel has 32% revenue market share and 24% subscriber market share in Wireless Operations in India.
- 2G Spectrum – Awaiting final guidelines and didn’t want to comment much. Company didn’t acknowledge that it had enough spectrum in most circles. However, they are looking forward to spectrum in some circles [Metros] and will bid in the auction process whenever required. No comments on one time Fees that it will have to pay on the Spectrum it is holding.
- Roaming Revenues – Domestic is in-line though Rural Indian subscribers are a drag. International roaming facing stress like any other carrier in India.
- Post-Paid- Revenue – Management avoids giving the break-up of Post-paid Revenues. I guess this question was likely asked with the nearing of Mobile Number Portability in India. Post MNP implementation, operators don’t want to lose the cream – Post-paid customers.
The coverage on Wireless battle will continue as Reliance announces its results tomorrow.