Asian telco stocks perform 'worst'

Asian telco stocks perform 'worst'

Nicole McCormick  |   January 08, 2010
telecomasia.net
Thumbnail: 

Share prices of Asian telecoms companies (excluding Japan) took a battering in 2009, with investment bank Credit Suisse deeming the sector’s share price performance last year as the “worst” of all the industries it tracks.
 
In 2009, several Asian mobile markets, including Hong Kong, India, the Philippines and Vietnam, were ravaged by severe price competition. At the same time, the US financial crisis hurt operator revenues due to slower demand for mobile services.
 
Mobile revenue growth has meanwhile slowed in several countries due to increasing market saturation.
 
“The 'low beta' nature of telecom services contributed to telcos’ status as the worst performing sector during FY09,” states a new report from Credit Suisse. “EPS downgrades on structural issues (new competition) in the two largest markets - China and India - were the other key drivers [contributing the sector’s poor performance].”
 
The bank says that even in the emerging markets, revenue growth is becoming difficult to find in the telecom sector.
 
“Looking into FY10, cellular service revenue is once again set to grow somewhat slower than nominal GDP,” the bank states. “We expect the highest cellular revenue growth in Indonesia, followed by China and then the Philippines.”
 
In Indonesia, Credit Suisse is forecasting cellular revenues will increase by almost 10% in 2010 vs. 2009, on the back of continued price stability.
 
It also foresees cellular revenue growth in China of 8.8% in 2010, with revenues in the Philippines expected to jump 7.4% in the period.
 
Conversely, Credit Suisse expects Indian cellular revenues to increase by only 2.4% this year.
“Our Indian team is forecasting only 5.1% revenue growth from Bharti (only 0.9% in cellular), and 3.4% growth from Idea for FY3/11,” adds the bank. “While Reliance’s revenue growth looks better, this is due to its tower business; cellular revenue is expected to decline 0.7%.”

Nicole McCormick

Comments

Voice Chat best and most

Tell Us What You Think

Add comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <a> <p> <span> <div> <h1> <h2> <h3> <h4> <h5> <h6> <img> <img /> <map> <area> <hr> <br> <br /> <ul> <ol> <li> <dl> <dt> <dd> <table> <tr> <td> <em> <b> <u> <i> <strong> <font> <del> <ins> <sub> <sup> <quote> <blockquote> <pre> <address> <code> <cite> <embed> <object> <strike> <caption>
  • Lines and paragraphs break automatically.
  • Use <!--pagebreak--> to create page breaks.

More information about formatting options

Video from Telecom Channel

ITU makes an IMPACT on cyber threats
The ITU sponsored IMPACT has been established to defend and respond to cyber-terrorism.  Datuk Amin outlines its mandate
 

Frontpage Content by Category

Industry experts put their heads together and stick their necks out to call the big trends for 2010
As 2009 draws to a close, take a look at some of the top 20 stories that our readers clicked most during the year

Voices_tabs

Consumers praise the quality of wireless telephone service but not its value, posing a dilemma for cellcos
Now it must manage expectations
Service providers must address three cloud computing services issues if enterprise customers are going to adopt the new model. The TM Forum wants to help.
The absence of facts has led to wild speculation of what the Anti-Counterfeiting Trade Agreement actually says

businessweek_industryview

Taiwanese shipments of Wimax customer premises equipment reached 844,500 units in the third quarter of 2009, growing 56.7% sequentially and 236.5% year-on-year, according to Taipei-based Market Intelligence & Consulting Institute.
The U.S. Federal Trade Commission should block the planned acquisition because it would diminish competition in the mobile- ad market, consumer groups said

lighter_side_telecom_career