In Q42020, Airtel’s mobile revenue growth outstripped Jio’s by a huge margin (quarter on quarter increase of 15%, 2X Jio) as the company saw an increase in ARPU from Rs 135 in Q32020 to Rs 154 in Q42020. This revenue and ARPU growth are despite the ~30 million customers not recharging due to the adverse effects of the coronavirus pandemic. Airtel is consistently maintaining its market share (Airtel – 26% in Q32019 vs. 26% in Q32020). Looking at the future, we are bullish at Airtel’s ability to grow its revenue market share by capturing customer base from its rivals, upgrade its 2G/3G base to 4G. Bharti Airtel Making Strides Across Services and emerging stronger.
Airtel has been strategically strengthening its networks PAN India as it focuses on firming its 4G presence in weaker circles so as to upgrade its 2G customer base and capture the market share from other incumbents, primarily Vodafone Idea. Even after the tariff hike, the company added 33 million 4G subscribers in the second half of FY20, with 40% of those additions in Q4 alone. However, there is still a huge runway for further growth with less than half of its customers using 4G – a major possible driver for ARPU increase in the near future.
The company’s continuous investments in networks are evident its consistently stable market share in the past quarters. In the Q4 earnings call, the company management communicated their confidence around the growing revenues arising from Airtel’s digital arsenal such as Airtel Thanks and Xstream. The company has been investing significantly to build a talented team around its digital services and we believe that the efforts have started paying off. Airtel will start benefiting tremendously from these multiple growth levers in enterprises and digital business. Bharti Airtel Making Strides and emerging stronger wherever needed.