Telecom companies’ revenue to decline for third consecutive year: Report

The Reliance Jio-induced pains for the telecom sector will continue, with the industry slated to report a decline in revenue for the third consecutive year, a report said on Monday.

However, there is room for a “minor recovery” in the upcoming fiscal year 2019-20, the report by domestic rating agency, Icra Ratings, said.

The intense competition after the launch of Jio has continued and the pricing pressure has manifested in “severe deterioration in the financial performance, marked by a decline in revenues, lower profitability (even losses for some telcos) and low cash generation,” it said.

After the 11 per cent decline in revenues in FY18 to Rs 2.1 lakh crore, the industry top-line is expected to further decline by 7 per cent in FY19, the agency said, adding, it expects 6 per cent growth in FY20.