- SingTel (SGX:Z74)’s 29%-owned associate Bharti Airtel said on Friday it raised mobile prices across various plans by 10-21% with an average price increase of 15%. Its competitors, Jio and Vi, have made similar price hikes.
- - Read this at SGinvestors.io -
How much can it help Bharti Airtel lift earnings?
- Factoring a price elasticity of 60%, we see the price increases lifting Bharti’s FY25-27 India mobile revenues by 7-9% (assuming a 9-month impact for FY25).
- Further assuming a pass-through impact of higher revenues on EBITDA at 60%, we see India mobile EBITDA rising 7-10% in FY25-27. This translates to an EBITDA lift of INR37-55bn (S$602-903m) for FY25-27.
Raise Singtel earnings estimates by 4-8%
- - Read this at SGinvestors.io -
- Factoring in the impact of India mobile prices increasing in our SingTel model, we raise our SingTel earnings estimates 4-8% in FY25-27.
Raise Singtel target price by 4% to S$3.40
- Read more at SGinvestors.io.
