New Street: EM Telcos Alongside better growth, ROIC is trending higher
We have written on multiple occasions about the new secular growth drivers that are leading EM Telcos to outpace GDP growth (Enterprise, Broadband, Fintech). But this is only part of why we are so bullish on the space. ROIC has also inflected. Partly this is itself a function of better growth, but with consolidation in the core mobility business, telcos are also seeing opex and capex structurally fall as a % of sales, while spectrum costs are also falling. Thus, leading EM Telcos are structurally seeing both ROIC and growth inflect higher.
Singapore Telecommunications is engaged in the operation and provision of telecommunications systems and services, and investment holding. Co. provides a range of multimedia and Information and communications technology solutions, including voice, data and video services over fixed and wireless platforms. Within both Singapore and Australia, Co. provides mobile communications, data and Internet, national telephone, information technology and engineering, sale of equipment, international telephone and pay television. Co.'s key businesses include: Group Consumer, Group Digital L!fe, and Group Information and communications technology.
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New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:
- Pan European Telecom Services and Cable
- US Telecoms, Cable, Satellite and Towers
- Global Emerging Market Telecoms
- Japan Telecoms
- Asian Internet
- Pan European Healthcare
- Global healthcare thematic research
We provide debt research on:
- Pan European Telecom Services and Cable
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