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Comprehensive financial study of 8 public listed mobile operator corporations, analyzing key metrics, ratios, and trends from 2011 to 2017. This analysis covers subscriber base, revenue, ARPU, profit margins, and more, indicating a downward trend across the industry. Explore industry competition, impacts of OTT, and regulatory involvement. Understand if the telecom sector is maturing or declining and discover potential strategy options. Source: Annual reports of leading MNO groups.
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Is the telecommunications industry in decline? A comprehensive financial analysis of eight public listed mobile operator (MNO) corporations, with an aggregate subscriber base of 1.8 billion subscribers, representing 23% of all global connections, reveals a clear downward trend in all financial ratios for the period 2011 to 2017. These MNO groups have a footprint across 5 continents, with operations in 92 countries. The MNO groups in the sample are: MTN, Orange, Vodafone, Millicom, Ooreedoo, Zain, Etisalat and Bharti Airtel. These operators offer telephony, data, mobile banking and digital services. The metrics, ratios and trends analysed are: subscribers, revenue, ARPU, cost-to-revenue, profit margins (operating, EBITDA, PBT), asset turnover, ROA, ROCE and share price versus market index performance. It is found that all profit margins and investment returns have been declining, consistently, as demonstrated in the slides that follow. An industry analysis, based on the Porter’s Five Forces framework, suggests mostly strong competitive forces. Competition is predominantly price based, having degenerated into fierce price wars in a number of markets. There is a high prevalence of product commoditisation across the industry. The impacts of OTT and regulatory involvement are significant. There seem to be non-collusive oligopolies present in a number of markets. Is the telecom industry finally entering a maturing or perhaps declining phase? Is it stuck in a typical red ocean? Has a new business model become necessary? What are the available strategy options? You can find answers in our full report, which is available at request.
Source: MTN, Ooredoo, Millicom, Vodafone, Zain, Etisalat, Bharti Airtel, Orange group annual reports 2011-2017.
Source: MTN, Ooredoo, Millicom, Vodafone, Zain, Etisalat, Bharti Airtel, Orange group annual reports 2011-2017
Source: MTN, Ooredoo, Millicom, Vodafone, Zain, Etisalat, Bharti Airtel, Orange group annual reports 2011-2017