The key downside risks for the sector include worse-than-expected mobile competition and a prolonged Covid-19 travel restriction. The former would weigh on Singtel and StarHub’s mobile revenue performance, while the latter would delay the full recovery of both mobile network operators’’ international roaming and prepaid revenues.
Analysts at CGS-CIMB remain “overweight” on the Singapore telco sector as the earnings risk from more intense mobile competition due to TPG’s entry have been priced in.
In an Oct 8 report, analysts Foong Choong Chen, Ong Khang Chuen and Andrea Choong say the mobile segment is expected to be more stable, with enterprise revenues rising stronger in CY22F compared to the previous year.
