Telecom Q4 preview: Revenue stabilisation, ARPU uptick on cards

Revenue growth for incumbents maybe flat at 1.5 per cent, while Jio is expected to drive up to 11 per cent sequential growth

After facing pricing pressure for the last 10 quarters, analysts feel that telcos are likely to witness some stabilisation in their revenue and earnings before interest, taxes, depreciation, and amortisation (Ebitda) in the final (fourth) quarter (Q4) of 2018-19 (FY19).

Overall, analysts have factored in 15-18 per cent average revenue per user (ARPU) growth on a quarter-on-quarter basis (QoQ) for the incumbents, as their minimum recharge plans kick in.

Vodafone Idea is expected to see a sequential jump in Ebitda in the range of 24 per cent, as synergy benefits kick in. While Bharti Airtel is expected to post a