What emerges from Mediobanca's annual report on the telecommunications sector. Here are numbers, trends, comparisons and analyzes on Tim, Vodafone, WindTre, Fastweb and more.
Surprise: there are 11 publicly controlled companies in the telecommunications sector and not only in China as one would expect. In Europe there are Swisscom (with the Swiss Confederatilon at 51%) which also controls Fastweb, Telenor (with the Ministry of Industry at 54%), Deutsche Telekom (with the Bundesrepublik Deutscheland at 31.9%) and Orange (with o State at 13.4% and Bpifranceparticipations at 9.6%).
Is this one of the aspects that emerges from Mediobanca's annual report on the telecommunications sector? Here are numbers, trends, comparisons and analyzes.
HOW ARE THE REVENUES OF THE TLC GROUPS
Let's start with the revenues. In the first six months of 2020, devastated by the pandemic, within Europe Deutsche Telekom dominates the ranking with revenues in the first half of € 47 billion (+ 1.5%, on a like-for-like basis), followed by Vodafone with 21.8 billion (+ 1.5%), Telefonica with 21.7 billion (-10%), Orange with 20.8 billion (+ 1%), BT Group with 11.9 billion (-5.3%) and Tim with 7.8 billion (-13.7%). This was stated in Mediobanca's annual report on the telecommunications sector.
THE NUMBERS ON AGGREGATED REVENUES
Looking at Italy in the first half of 2020, the aggregate revenues of the main operators fell by 8%, with the mobile network in less trouble overall (-6.5%). The turnover in mobile services of the first three operators (Tim, Wind Tre and Vodafone) decreased by approximately 500 million.
The trend in turnover is fluctuating: Iliad grows fast (+132 million; + 74.6%), Fastweb up (+ 5.3%), Wind Tre (-3.1%), Vodafone (-5, 1%) and Tim (-13.7%). Among the factors that explain the performance of the Italian market, which is worse than the European average, there are the fierce competition with the consequent drop in prices and the prolonged and hard lockdown.
Covid and 'resilience' are the two symbolic words of 2020 also for telecommunications. The pandemic and restrictions on physical travel have emphasized the role of telecommunications around the world and represented a real 'stress test' for the sector. The annual report of Mediobanca's telecommunications studies area shows “a good reaction to the emergency in terms of service, despite the fact that data traffic has increased exponentially”. At the expense of this, however, were the income statements burdened by the increase in costs and the flattening of revenues due to the “bundle” offering model now widely used. In the first half of 2020, the aggregate turnover of the 30 main world operators amounted to 540.8 billion (-2%) with more contained impacts in the countries that first emerged from the lockdown: -0.4% in Asia (220.7 billion), -1% in Europe (147.8 billion) and broader in the Americas (-4.8% to 172.3 billion). Here, among the 'big 5' Tim is the one that has suffered the most with a decline in turnover of 13.7% to 7.8 billion which places it in 17th place in the world rankings. Deutsche Telekom dominates the ranking with revenues in the first half of 47 billion, followed by Vodafone (21.8 billion), Telefonica (21.7 billion), Orange 20.8 billion
COMPARISONS BETWEEN COUNTRIES
"Italy in Europe is the country that has experienced the most fierce competition, especially in the mobile market", explained Dario Carugati, financial analyst at Mediobanca, highlighting that telco prices have fallen more than the general index and that competitiveness has also increased in the fixed market. Going deeper into the photograph, it is clearer that it was Brazil that weighed on Tim (-22%), while in Italy the decline was 11.5%.
HOW IS ITALY
The Mediobanca R&D study, which analyzes the economic and financial data of the 30 main global telephone groups with annual revenues exceeding 10 billion euros, recalls that in Italy the average monthly values of daily data traffic in fixed networks increased by 75.5% and 74.9% in furniture between March and May 2020; the increase in data consumption on mobile devices was highest in the areas with the lowest penetration rates of fixed residential networks.
The negative trend in overall revenues of telecommunications companies continues, down to 29.8 billion euros in 2019 (they were 42.2 billion euros in 2010), down by -4.4% on 2018. Fixed assets (16.2 billion euros in euro; -1.7% on 2018) limits the contraction while furniture (13.7 billion euro; -7.3%) is in greater difficulty. This is what emerges from the annual report on the main telcos produced by Area Studi Mediobanca and presented today, which also analyzed the effects of Covid 19 on the sector. TIM (Italian businesses) is first in terms of turnover (€ 13.1bn; -5.5% on 2018), ahead of Vodafone (€ 5.7bn; -5.2%) and Wind Tre (€ 5.1bn; -6.5%). Excluding the start-ups (Iliad and Open Fiber) and the smaller Eolo and Linkem, Fastweb is the only one to grow in the five-year period (+ 27.8% revenues), with industrial investments above the Italian average. Wind Tre is the operator with the highest profitability (EBIT margin at 17.4%) followed by Tim (16.5%), both returning to profit in 2019, no longer burdened by write-downs and extraordinary charges.
SHAREHOLDERS AND THE ROLE OF THE STATE
Public shareholding, a topic that has returned to prominence since the talk in Italy of the Unica Network and the participation of Cdp in Tim, is widespread in telecommunications all over the world. Mediobanca's annual study photographs the big names in the sector and shows that there are 11 publicly controlled companies and not only in China as one would expect. In Europe there are Swisscom (with the Swiss Confederatilon at 51%) which controls the Italian Fastweb, Telenor (with the Ministry of Industry at 54%), Deutsche Telekom (with the Bundesrepublik Deutscheland at 31.9%) and Orange ( with o State at 13.4% and Bpifranceparticipations at 9.6%).
THE WEIGHT OF PUBLIC COMPANIES
There are 9 companies classified as public companies or with widespread shareholding, the preferred form of governance in the Americas but also present in Europe: Bell Canada, At & T, Verizon and Centurylink, Telefonica, Vodafone, Telstra, Bt and the Korean KT.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-vanno-i-conti-di-tim-vodafone-windtre-fastweb-e-non-solo-report-mediobanca/ on Thu, 22 Oct 2020 08:19:45 +0000.