Picture

Questions?

+1-866-353-3335

SEARCH
What are you looking for?
Need help finding what you are looking for? Contact Us
Compare

PUBLISHER: MTN Consulting, LLC | PRODUCT CODE: 1401466

Cover Image

PUBLISHER: MTN Consulting, LLC | PRODUCT CODE: 1401466

Telecommunications Network Operators - 3Q23 Market Review: Telco Topline Stages Recovery but Capex Slips Further, Margins Surge Amid Opex Cuts

PUBLISHED:
PAGES:
DELIVERY TIME: 1-2 business days
SELECT AN OPTION
Excel (Site License)
USD 3000
Excel (Enterprise License)
USD 7500

Add to Cart

This report reviews the growth and development of the telecommunications network operator (TNO, or telco) market. The report tracks a wide range of financial stats for 139 telcos across the globe, from 1Q11 through 3Q23. In the annualized 3Q23 period, telcos represented $1.76 trillion (T) in revenues (-3.5% YoY), $257.6 billion (B) in labor costs (-1.2% YoY), and $318.7B in capex (-3.5% YoY). They employed approximately 4.53 million people as of September 2023, down 1.6% from the prior year.

VISUALS

Below are the key highlights of the report:

  • Revenues: Telco topline grew slightly by 0.3% on a YoY basis to post $437.8 B in the latest single quarter ending 3Q23. Revenues for the annualized 3Q23 period were $1,759.4B, down 3.5% YoY over the same period in the previous year. In the last two quarters, YoY growth in service revenues has handily outpaced equipment revenues, as 5G device sales ease. At the operator level, five of the top 20 best performing telcos by topline growth in 3Q23 on an annualized basis include Saudi Telecom (7.8%), America Movil (6.9%), Airtel (6.0%), Charter Communications (1.9%), and Telefonica (1.7%). By the same criteria, the worst telco growth came from AT&T (-18.3%), KDDI (-8.6%), SoftBank (-7.0%), NTT (-6.1%), BT (-5.1%) during the same period.
  • Capex: Capex spending declined by 7.7% on a YoY basis to post $73.4B in the latest single quarter ending 3Q23. Capex for the annualized 3Q23 period was $318.7B, down 3.5% YoY over the same period in the previous year. At the operator level, five of the top 20 best performing telcos by capex growth in 3Q23 on an annualized basis include Airtel (43.2%), Reliance Jio (37.2%), Charter Communications (30.8%), Comcast (24.9%), and Telefonica (5.1%). By the same criteria, the worst capex growth came from China Unicom (-16.6%), China Mobile (-15.0%), BT (-14.9%), SoftBank (-11.7%), and AT&T (-7.7%) during the same period. Capital intensity is on the downswing: it was 16.8% in 3Q23, from 18.2% the year prior.
  • Opex and labor costs: Total opex for the telecom industry in the annualized 3Q23 period stood at $1,484.2B, a decrease of 4.7% over 3Q22 on YoY basis. Excluding depreciation and amortization (D&A) costs, total opex declined by 5.0% on YoY basis to record $1,147.7B in the annualized 3Q23 period. One significant element of telco opex is labor costs, which include salaries, wages, bonuses, benefits, and retirement/severance costs. Annualized labor costs declined by 1.2% YoY in 3Q23 over the annualized 3Q22 period. However, total opex declined faster, pushing labor costs as a percentage of opex (excluding D&A) up from 21.6% in annualized 3Q22 to 22.4% in annualized 3Q23. Annualized labor costs per employee grew slightly to $56.6K in 3Q23 compared to $56.2K the prior quarter.
  • Profitability margins: Both EBITDA and EBIT margins witnessed an uptick in the annualized 3Q23 period compared to 2Q23 - annualized EBIT margin grew from 15.4% in 2Q23 to 15.6% in 3Q23, while annualized EBITDA (operating) margin ended 3Q23 at 34.8%, as compared to 34.6% in the previous quarter.
  • Regional trends: The Americas region rebounded to become the single largest region by revenues in 3Q23 with 37.8% of the global share. On a capex basis too, the Americas region dominated the global share in the latest quarter with 37.8% share. Europe continued its lead into the latest quarter by having the highest regional capital intensity on an annualized basis: 19.7% capex/revenue ratio in 3Q23.

COVERAGE:

Operator coverage:

  • A1 Telekom Austria
  • BCE
  • Cequel Communications
  • Cogeco
  • Dish TV India Limited
  • Globe Telecom
  • LG Uplus
  • MTN Group
  • Proximus
  • Singtel
  • SureWest Communications
  • Telecom Italia
  • Time Warner
  • Vodafone
  • Masmovil
  • Advanced Info Service (AIS)
  • Bezeq Israel
  • Charter Communications
  • Com Hem Holding AB
  • DNA Ltd.
  • Grupo Clarin
  • Liberty Global
  • MTNL
  • Quebecor Telecommunications
  • SITI Networks Limited
  • Swisscom
  • Telefonica
  • Time Warner Cable
  • Vodafone Idea Limited
  • Airtel
  • Bouygues Telecom
  • China Broadcasting Network
  • Comcast
  • Du
  • Grupo Televisa
  • M1
  • NTT
  • Rakuten
  • SK Telecom
  • Taiwan Mobile
  • Telekom Malaysia Berhad
  • TPG Telecom Limited
  • VodafoneZiggo
  • Altice Europe
  • BSNL
  • China Mobile
  • Consolidated Communications
  • EE
  • Hathway Cable & Datacom Limited
  • Manitoba Telecom Services
  • Oi
  • Reliance Communications Limited
  • Sky plc
  • Tata Communications
  • Telenor
  • True Corp
  • Wind Tre
  • Altice USA
  • BT
  • China Telecom
  • Cyfrowy Polsat
  • Elisa
  • Idea Cellular Limited
  • Maroc Telecom
  • Omantel
  • Reliance Jio
  • SmarTone
  • Tata Teleservices
  • Telia
  • Turk Telekom
  • Windstream
  • America Movil
  • Cable ONE, Inc.
  • China Unicom
  • DEN Networks Limited
  • Entel
  • Iliad SA
  • Maxis Berhad
  • Ono
  • Rogers
  • SoftBank
  • TDC
  • Telkom Indonesia
  • Turkcell
  • Zain
  • AT&T
  • Cablevision
  • Chunghwa Telecom
  • Deutsche Telekom
  • Etisalat
  • KDDI
  • Megafon
  • Ooredoo
  • Rostelecom
  • Spark New Zealand Limited
  • TDS
  • Telkom SA
  • Veon
  • Zain KSA
  • Axiata
  • Cell C
  • Cincinatti Bell
  • Digi Communications
  • Fairpoint Communications
  • KPN
  • MetroPCS Communications
  • Orange
  • Safaricom Limited
  • Sprint
  • Tele2 AB
  • Telstra
  • Verizon
  • Ziggo
  • Axtel
  • Cellcom Israel
  • CK Hutchison
  • DirecTV
  • Far EasTone Telecommunications Co., Ltd.
  • KT
  • Millicom
  • PCCW
  • Sasktel
  • StarHub
  • Telecom Argentina
  • Telus
  • Virgin Media
  • Batelco
  • CenturyLink
  • Clearwire
  • Dish Network
  • Frontier Communications
  • Leap Wireless
  • Mobile Telesystems
  • PLDT
  • Shaw
  • STC (Saudi Telecom)
  • Telecom Egypt
  • Thaicom
  • Vivendi

Regional coverage:

  • Asia
  • Americas
  • Europe
  • MEA
Product Code: GNI-23122023-1

Table of Contents

1. Report Highlights

2. Summary

3. Market snapshot

4. Analysis

5. Key stats through 3Q23

6. Labor stats

7. Operator rankings

8. Company Deepdive & Benchmarking

9. Country breakouts

10. Country breakouts by company

11. Regional breakouts

12. Raw Data

13. Subs & traffic

14. Exchange rates

15. Methodology & Scope

16. About

Product Code: GNI-23122023-1

List of Figures and Charts

  • 1. TNO market size & growth by: Revenues, Capex, Employees - 1Q19-3Q23
  • 2. Regional trends by: Revenues, Capex - 1Q19-3Q23
  • 3. Opex & Cost trends
  • 4. Labor cost trends: 1Q20-3Q23
  • 5. Profitability margin trends: 1Q20-3Q23
  • 6. Spending (opex, labor costs, capex): annual and quarterly trend
  • 7. Key ratios: annual and quarterly trend
  • 8. Workforce & productivity trends: 1Q14-3Q23
  • 9. Operator rankings by revenue and capex: latest single-quarter and annualized periods
  • 10. Top 20 TNOs by capital intensity: latest single-quarter and annualized periods
  • 11. Top 20 TNOs by employee base: latest single-quarter
  • 12. TNOs: YoY growth in single quarter revenues
  • 13. TNOs: Annualized capital intensity, 1Q16-3Q23
  • 14. TNOs: Revenue and RPE, annualized 1Q16-3Q23
  • 15. TNOs: Capex and capital intensity (annualized), 1Q16-3Q23
  • 16. TNOs: Total headcount trends, 1Q16-3Q23
  • 17. TNOs: Revenue and RPE trends, 2011-22
  • 18. TNOs: Capex and capital intensity, 2011-22 ($ Mn)
  • 19. TNOs: Capex and capital intensity, 1Q16-3Q23 ($ Mn)
  • 20. TNOs: Revenue and RPE trends, 1Q16-3Q23
  • 21. Top 79 TNOs by total opex, 3Q23
  • 22. Top 79 TNOs by labor costs, 3Q23
  • 23. TNOs: Software as % of total capex
  • 24. TNOs: Software & spectrum spend
  • 25. TNOs: Total M&A, spectrum and capex (excl. spectrum)
  • 26. Top 79 TNOs by total debt: 2011-22
  • 27. Top 79 TNOs by total net debt: 2011-22
  • 28. Top 79 TNOs by long term debt: 2011-22
  • 29. Top 79 TNOs by short term debt: 2011-22
  • 30. Top 79 TNOs by total cash and short term investments ($M): 2011-22
Have a question?
Picture

Jeroen Van Heghe

Manager - EMEA

+32-2-535-7543

Picture

Christine Sirois

Manager - Americas

+1-860-674-8796

Questions? Please give us a call or visit the contact form.
Hi, how can we help?
Contact us!