Malaysian Telco Meetings: Recent Good Results May Be Passing. Competition Remains Fierce.

DIGI Delivers Improved 4Q17 Numbers but Outlook Tough and Spectrum Costs Rising

Axiata Guidance Hit by FX Changes (Strong Ringgit). Underlying Business Performing Well (Mostly)

Malaysian Telcos: DIGI and Maxis Struggle in an Ex Growth Telecom Market. No Recovery in Sight.

Spectrum Refarming Increases Competitive Pressure on Malaysian Telcos.

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New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

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Equity Bottom-Up

<p>We have been negative on the Malaysian telecoms market for some time. We see Malaysian telcos as overvalued and facing a period of declining returns as competition increases and spectrum prices rise from very low levels.  The latest results from <a href="https://www.smartkarma.com/entities/945" target="_blank" data-smartkarma-citation="entities:945:1">DIGI (DIGI MK)</a> do nothing to change that view.</p><p>Management had already lowered guidance in 2Q, looking for a ‘low to mid- single digit decline’ in service revenues. This now looks optimistic. Ebitda guidance for flat growth looks even more difficult to…</p>

We have been negative on the Malaysian telecoms market for some time. We see Malaysian telcos as overvalued and facing a period of declining returns as competition increases and spectrum prices rise from very low levels.  The latest results from DIGI (DIGI MK) do nothing to change that view.Management had already lowered guidance in 2Q, looking for a ‘low to mid- single digit decline’ in service revenues. This now looks optimistic. Ebitda guidance for flat growth looks even more difficult to…

Trends Continue to Deteriorate at DIGI as Competition Remains Intense in Malaysia.

CelcomDigi

Trends Continue to Deteriorate at DIGI as Competition Remains Intense in Malaysia.