This telco can do it all: grow, subsidise, spend, generate cash, and pay dividends
Viva’s strategy enables it to capture still-growing demand for data. Despite its relatively high SIM and mobile broadband penetrations of 187% and 118% in 3Q14, we believe there is still ample room for mobile data growth. This comes as the underinvested government-monopolised fixed-line market fails to meet the demand for higher-speed data in the oil-rich high income country. The mobile operators who have recognized the gap have all launched LTE services in 2012/13. On expectations that the government will delay spending on fibre roll-out further as a result of political hurdles and structural challenges, we see the mobile market continuing to benefit. Viva, the third entrant but now second-largest player, we believe is best positioned to capture the unmet demand for MBB as it shifted its strategy from aggressive price competition to enhancing low-end customer usage upon having gained critical mass. Its ARPU increased 4% in 2011-14e vs. a 10% decline for its competitors. Going forward we see Viva stabilizing its ARPU (+1%), leading subscriber growth to reflect on revenue growth forecasted at 9% in 2015-17e.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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