telefonica

After years of heavy pressure on revenues in the telecom sector, we make a call for near-term revenue stabilisation. From an operational perspective, the main themes for the telecom sector are the build-out of 5G and fibre networks. To improve the relative position of the sector regulators should review their measures to provide a more level playing field Source: Shutterstock War has a limited impact on the telecom sector European- and US-based telecom operators are rather insulated from the conflict in Ukraine. Major operators have no sales in the region, the exception being VEON, which is largely exposed, since it is active in Russia and Ukraine. Telekom Austria had only 7.4% of its FY 2021 revenues coming from Belarus. For now, the impact of the war seems limited, with most companies maintaining their 2022 outlook. Typically, demand for telecom services grows in line with GDP. If a severe recession would hit the global economy, teleco

What Is Going On Financial Markets Today? Russia Will Not Resume Deliveries Of Gas

Indices: French CAC40 (FCHI) Has Decreased By 10% Over Last 3 Months! Spanish IBEX35 (IBEX) Has Performed Better “Only” -2% Gain

Mikołaj Marcinowski Mikołaj Marcinowski 12.04.2022 21:39
Yes, everybody follows French election. Not only it’s important for the certain companies, but also for whole indices. One of the most popular – CAC40 performs well recently, but taking 3M chart into consideration… Geopolitics is in charge surely, tensions between Ukraine and Russia transformed into a warfare and finally, into a Russia vs. the rest of world influencing many countries’ economics. In France it’s combined with ongoing election where the two candidates Emanuel Macron and Marine LePen who represent two different visions of France in the future and its correlations with the European Union. Related article: ECB To Shock Markets In The Following Week!? US Dollar Rate Under Pressure As Well! What is the future of CAC40? CAC40 Chart As we see 10% loss isn’t that bad as the vision of ca. 20% loss could have been. CAC40 Chart IBEX35 has performed quite well despite all the factors. The worst moment of the IBEX35 was the beginning of March. March 7th didn’t bring any positive information on negotiations and crude oil price hit the highest price since 2008. French and Spanish hitting their 3 month lows is not a big surprise then. At that time IBEX35 has been almost 16% below-the-line. IBEX35 Chart CAC40 Daily – Arcelor Mittal (MT), Louis Vuitton (LVMH) and Thales (TCFP) leading the top gainers chart According to Investing.com Arcelor Mital (MT) gained the most over last day of trading. The mining company increased 2.27%. Brand known by more probably – Louis Vuitton (LVMH) – went up by 1.77%. The last of top 3 companies today is Thales (TCFP). This multisector company gained 1.67%. Analysis: Gold prices (XAUUSD) increase inlight of the U.S. announcing their new inflation rate - Chart Of The Day By FXMAG.COM IBEX35 Daily – Repsol (REP), Telefonica (TEF) and Arcelor Mittal (MTS) Repsol – energy company performed really well today gaining 3.36%. Communication company Telefonica is also 3% higher. Arcelor Mittal which dominated the list of CAC40 gainers impressed analytics in Spain as well increasing by 2.32% Source and Data: NPR, Investing.com, TradingView.com Charts: Courtesy of TradingView.com
Steady BoE Rate Expectations Amid Empty Event Calendar in the UK

European telecoms outlook for 2022 | ING Economics

ING Economics ING Economics 19.05.2022 08:53
After years of heavy pressure on revenues in the telecom sector, we make a call for near-term revenue stabilisation. From an operational perspective, the main themes for the telecom sector are the build-out of 5G and fibre networks. To improve the relative position of the sector regulators should review their measures to provide a more level playing field Source: Shutterstock War has a limited impact on the telecom sector European- and US-based telecom operators are rather insulated from the conflict in Ukraine. Major operators have no sales in the region, the exception being VEON, which is largely exposed, since it is active in Russia and Ukraine. Telekom Austria had only 7.4% of its FY 2021 revenues coming from Belarus. For now, the impact of the war seems limited, with most companies maintaining their 2022 outlook. Typically, demand for telecom services grows in line with GDP. If a severe recession would hit the global economy, telecom operators and handset vendors probably have to adjust revenue expectations in line with GDP expectations, on average. In Europe, however, service revenues have historically already been under pressure because of strong competition. We do not foresee a substantial impact on the financial solidity of companies resulting from this crisis. The biggest risk for the sector comes from cyberwarfare The biggest risk for the sector comes from cyberwarfare. State sponsored hackers could engage at some point in cyberwarfare, something the US government warns about. Hackers could try to impair (local) infrastructure, while telecom companies have to up their defenses. Interestingly, so far, we have seen limited impact from cyberwarfare that could possibly have been initiated as a part of the war in Ukraine. However, we are starting to see revenue stabilisation in a couple of markets. For example, the market leaders in the Dutch, French, Belgian and German markets are close to revenue stabilisation. This is mainly driven by new broadband products, which are often offered with mobile services in a bundled product. Restructuring programmes continue to modernise the back-office of the operators and to phase out legacy technologies. Once programmes are over, this could be a tailwind for profitability. Despite good traction from bundled products and new high ARPU fibre products, many incumbents have segments that see price pressure, often in the business segments. This explains why we see positive trends in the sector, while revenues are not showing strong positive growth rates. Domestic revenue trends European telecom operators Source: Company, ING Aiming for a level playing field The European Commission aims for gigabit broadband for all households as well as for a fast 5G mobile connection in populated areas, which should be reached by 2030. It also aims to rein in some large technology companies. It has published proposals for the Digital Services Act (DSA) and the Digital Markets Act (DMA) which should reduce the dominance of the large technology platforms and create a level playing field with other sectors in Europe. The EU member states and European Parliament said they welcome the proposals. These are now subject to formal approval by the two co-legislators before they will be applicable. Hopefully, the competitive position of telecom companies will improve as well at some point in the future. Competition has been promoted... and this has lowered prices for telecom services as well Regulation has seriously impaired the profitability of telecom companies through tariff measures (for broadband wholesale access and roaming tariffs). Competition has been promoted, with four mobile operators in many European countries. This has lowered prices for telecom services as well. Governments have raised a lot of money through spectrum auctions and often incentivised new operators entering the market. Finally, product differentiation has been difficult because of net neutrality regulations. As a consequence, free cash flow has been under pressure from both weaker revenues, as well as heavy investments and dividends. Read next: Altcoins: What Is Monero? Explaining XMR. Untraceable Cryptocurrency!? | FXMAG.COM A case in point is Telecom Italia, which had a solid investment grade rating in 2005, but is now rated in high yield territory. The Italian market is characterised by heavy competition, while the company explains that its fixed network faces relatively high regulatory pressure from a multitude of measures. The company faces substantial pressure on revenues, as can be seen in the figure above. The interim result is that the company is investigating a break-up, having ramifications for the speed of the broadband roll-out in Italy. The downward pressure on credit ratings has been more widespread in the European telecom sector since most companies have already seen rating downgrades. This is illustrated in the table below. Downward rating pressure for European telecom operators Source: S&P Read next: Altcoins: What Is Litecoin (LTC)? A Deeper Look Into The Litecoin Platform| FXMAG.COM As a result, telecom companies have been at the wrong spot in the value chain, while companies that sell telecom equipment, media content or cloud storage have performed very well, as is shown in the figure below. While large technology companies have the means to invest in new (transatlantic) fibre networks, incumbents often can’t fund all of their network investments from their cash flows. In our opinion regulators should pay attention to a call by the European Telecom Network Organisation (ETNO) in which they ask for a fair contribution for the network investment costs from companies that extensively use broadband networks. Since 2015, unregulated firms did profit from internet with market cap. growth Source: Refinitiv Sector trends contribute to revenue stability Nevertheless, broadband connectivity will likely improve across Europe and 5G is here to stay. The private sector is investing heavily, but there are also plans to invest €13bn in digital connectivity as part of the European Resilience and Recovery Plan. Typically, customer retention is relatively healthy for fibre products, especially when combined in a fixed-mobile converged offer. Net mobile networks and services could also contribute to the goal of revenue stability and eventually growing revenues. This year, 5G products and services will likely become widespread. However, it will be key for mobile operators to find good pricing policies for these new 5G services.   Read this article on THINK TagsTelecom sector European telecoms Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

currency calculator