- ARPU down QoQ from 232 to 209
- MOU down from 399 to 375
The management has said,
MOU drop was driven by: (1) increased multi-SIM ownership due to competition – company estimates ~20% of all India subs are using multiple SIM cards, with proportion being higher in urban areas; (2) seasonal factors (less roaming); and (3) impact of delayed monsoons on rural demand. We expect the revenue ‘chill’ to continue in 2H as well, with ARPM erosion likely to be an equally dominant factor (if not more), compared with MOU pressure.
Revenue in existing 11 circles (excl. 5 new circles) was actually down 1.3% qoq. EBITDA loss in new circles (Rs830m) was higher than Analysts Rs694m estimate.