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3Q08 telco financials give clues to carrier profitability, sustainability

3Q08 telco financials give clues to carrier profitability, sustainability

Table of Contents

Market Study
Published: July 2010
Pages: 13
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 934.38  Buy Now!
Research from: Datamonitor
Sector: Energy

Introduction

Review of the Q308 results of 114 listed telcos and and offer a brief outlook on what to watch for as they start reporting 4Q08 financials.

Scope

*Carrier Financial results in 4 regions; Asia Pacific, North America, EMEA and Central and Latin America

*For profitability, we have focused on two metrics: (1) operating cash flow (OCF) margin, defined as EBITDA (revenues less opex) minus capex, divided by revenues, and (2) net profit margin, or bottom-line net income divided by revenues.

*For sustainability, we focus on (1) the ratio of annualized (i.e. four quarters' worth) EBITDA (earnings before interest taxes, depreciation, and amortization) to net debt (calculated as total debt less cash on hand), and (2) the ratio of cash on hand to average monthly opex (excluding the depreciation element of opex).

Highlights

Profitability: OCF margins stable, net margins down

Sustainability: flat overall, but North America is in a tough spot

Reasons to Purchase

*Compare 114 carriers financial performance.

*Understand the financial sustainability of carriers in the continuing tough economic conditions.

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