UK Altnet Update: Talk of demise might be premature

News about the difficulties facing the UK altnet sector are starting to become more widely reported, but as ever in any industry, there are winners and losers and often the scale players can win – even in the altnet sector.

UK Telcos Impact from higher employers' taxation in upcoming Budget

Over the weekend, it has been widely reported that the upcoming Budget this Wednesday will include a 2pp rise for employer national insurance tax. In this brief note, we run through the financial implications of this for the UK telecoms companies (BT, VMO2, TalkTalk and Vodafone) and who is most exposed.

TME 3Q24 Results: Further Upside in Margin in FY25

What’s new: TME’s reported 3Q24 top-line results that were largely in-line with consensus and our expectations. Subscription revs could remain resilient partly driven by stable quarterly net adds and higher monthly ARPPU. Margins could see further upside in 4Q24 and into FY25 partly driven by better rev mix and continued cost controls. We maintain our PT at USD14. Analysts: Jin Yoon

SE 3Q24 Results: Focus Remains on Disciplined Growth Heading into FY25

What’s new: SE’s reported 3Q24 results that were above consensus and our expectations. Shopee FY24 GMV growth guidance remains intact, while Free Fire FY24 bookings could grow over 30% YoY. We up our PT from USD120 to USD130 on improving outlook. Our revised PT of USD130 implies 3.7x FY25E EV/Rev. We maintain our BUY rating. Analysts: Jin Yoon

Infineon 4FQ24: Inventory digestion hits. Steep recovery embedded in the guide. Buy, €45.