Outlook for telecoms in Asia is stable: Moody’s
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Moody's Investors Service says that the outlook for the telecommunications industry in Asia Pacific is stable, but will also face headwinds from technological changes.
“Three factors drive the stable outlook; expectations of year-on-year average revenue growth of about 2 to 2.5 per cent over the next 12-18 months; EBITDA growth of 0 to 2 per cent, although average margins will contract slightly next year; and capex – as a percentage of revenue – remaining elevated at around 25 per cent,” says Nidhi Dhruv, a Moody's vice president and senior analyst.
“However, organic revenue growth is slowing, although the pace varies by country, due to increasing mobile penetration rates, ongoing competition, and technological headwinds," adds Annalisa Di Chiara, Moody’s vice president, senior credit officer.
