Telecom sector revenue growth at 5% in Q2 on easing of lockdown curbs: Report

Telecom sector’s revenue growth picked up to about 5 per cent in the September quarter against 1 per cent in the June quarter after relaxation of lockdown curbs, according to a latest report. Bharti and Jio gained market share from Vodafone Idea, while Airtel continued to “outperform” on key operating metrics, Jefferies has said in a recent note.
“During 2QFY21, aggregate revenue growth for the top-3 operators picked up to 5 per cent quarter on quarter versus 1 per cent quarter in quarter in 1QFY21, largely due to relaxation of lockdown,” Jefferies added.
Seen quarter-on-quarter, Bharti Airtel reported the highest revenue growth at about 7 per cent sequentially, against Jio’s 6 per cent and Vodafone Idea’s (VIL) 1 per cent.
Bharti’s operating metrics continue to outperform, it observed.
“While gross subscriber additions picked up for all three operators quarter on quarter, fall in churn levels helped Bharti outperform peers on net additions during 2Q. Notably, VIL’s gross adds remain depressed since December-19 tariff hikes,” it said.