Covid-19 expected to hurt telcos’ Q1 revenue growth, say analysts

New Delhi/Mumbai: The coronavirus pandemic and the ensuing restrictions are likely to hit revenue growth of Vodafone Idea Ltd and Bharti Airtel Ltd in the first quarter of fiscal 2021, with significant reduction seen in subscriber base due to massive migration of workers from urban to rural areas, job losses and disconnection by those holding multiple SIM cards, said analysts.

Airtel and Vodafone’s average revenue per user (Arpu) is expected to drop in the April-June quarter due to non-availability of offline recharges, muted 4G net additions, negligible international roaming revenue and some temporary recharge aberration, ICICI Securities said in a report.

Mukesh Ambani’s Reliance Jio Infocomm Ltd may report tepid revenue growth due to lockdown-led delayed recharges. However, the telco’s lower share of business from international roaming services, compared to peers, is going to prevent a steep Arpu fall.