
The average Year-on-Year (YoY) revenue growth for APAC telcos reduced from ~4.7% in Q2-2023 to ~3.8% in Q2-2024.
Despite the slowdown in growth, the 49 telcos analysed in Q2-2024 achieved a combined revenue of USD 147.7 billion. Around 72% of these telcos reported positive revenue growth, with 9 recording YoY gains exceeding 10%.
The average EBITDA margin stabilized at around 39% in Q2-2024.
About 72% of the 46 analysed telcos reported positive changes in EBITDA during Q2-2024. Nearly ~35 % of telcos reported a slight EBITDA variation, within a manageable range (-3% to +3%).
Average CAPEX intensity declined significantly from 16.4% in Q2-2023 to 14.1% in Q2-2024. The maturation of 4G and 5G network deployments in India and China resulted in lower CAPEX allocation.
Nearly 61% of the 41 telcos analysed reported a YoY CAPEX decline in Q2-2024, up from ~57% in Q2-2023.
Out of the 35 analysed telcos for ARPU, nearly 55% reported YoY ARPU growth in Q2-2024. Nearly 32% reported higher YoY ARPU growth in Q2-2024 compared to Q2-2023.
The expansion of 4G/5G networks, ARPU improvement initiatives, increasing data usage and growth in post-paid ARPU have contributed to consistent ARPU growth.
Telcos have introduced new digital services and partnered with technology vendors to accelerate digital transformation. These efforts focus on enhancing network infrastructure, customer experiences, and adopting technologies like AI and 5G.
Revenue analysis of APAC telcos: Q2-2024
Average revenue growth for leading global telcos slowed from ~4.7% in Q2-2023 to ~3.8% in Q2-2024
Approximately 72% of telcos achieved YoY revenue growth in Q2-2024 (as compared to ~80% in Q2-2023). The combined revenue of the 49 analysed telcos increased by ~USD 4.3 billion to ~USD 147.7 billion in Q2-2024, with 9 (around 18%) of the total telcos exhibiting double-digit growth.
Exhibit 1: Revenue trends (% change) for APAC telcos (YoY basis), Q2-2024
Note: Revenue for PCCW, Spark, TPG Telecom, SmartTone, 3 Hong Kong, Telstra has been estimated basis H2-2024 results
Source: Telco financials, Twimbit analysis
Key highlights
Emerging markets, including the Philippines, India, Indonesia, Thailand, and Bangladesh, have witnessed sustained growth in telco revenue, primarily driven by the expanding adoption of 4G and 5G services.
Competition has intensified with the entry of DITO in the Philippines, while in Pakistan, telcos have reported robust revenue growth driven by a rising 4G user base.
India's leading telcos, Bharti Airtel and Reliance Jio, have seen revenue growth propelled by price increase and also subscriber growth.
In Singapore, telco revenue growth is under tremendous pressure with intensifying price competition.
Telcos like MobileOne (M1), 3 Hong Kong, and SmarTone have been further impacted by a decline in handset sales.
DITO - Philippines
DITO reported highest YoY revenue growth amongst APAC telcos in Q2-2024. Having commercially launched its services in 2021, the revenue growth has been driven by its improved network coverage which spans 853 cities in Q2-2024. It also launched its post-paid offerings in August-2023 to further ramp up its commercial operations with targeted subscriber acquisition. With a population coverage reaching 80.65% in Q2-2024, its overall average subscriber soared by ~51% YoY to reach 11.3 million in Q2-2024.
Jazz - Pakistan
Revenue increased 24.1% YoY to USD 340 million (PKR 94.6 billion) in Q2-2024, primarily driven by data segment, driven by 4G user base expansion. 4G users grew 11% YoY totalling 47.3 million with 4G penetration increasing to 66% in Q2-2024.
Ufone - Pakistan
Revenue grew 19% YoY to USD 199.5 million in Q2-2024, primarily attributed to a strong mobile and FTTH customer additions. Additionally, the strong showing in the consumer sector was also enhanced by marked advancements in fixed broadband, mobile data, and business solutions.
VEON - Kazakhstan
VEON - Kazakhstan achieved 18.8% YoY revenue increase to USD 223.8 million (KZT 100.3 billion) in Q2-2024, driven by growth in revenue from both mobile and fixed-line segment.
Far EasTone (FET)
FET’s revenue increased led by increased contribution from Mobile and New Economy Business” revenue. Increased 5G penetration (40.5% in H1-2024) coupled with growth in mobile post-paid ARPU and overall subscriber count resulted in mobile revenue growth. “New Economy Business” revenue (Big Data, AI, and IoT) increased 10% YoY.

EBITDA analysis of APAC telcos: Q2-2024
Average EBITDA margin for the leading global telcos stabilised at ~39% in Q2-2024
Cost control measures, operational efficiency initiatives, and sustained top-line growth have stabilized EBITDA for ~72% of the analysed telcos. Nearly 35 % of telcos reported a slight EBITDA variation,within a manageable range (-3% to +3%).
Exhibit 2: EBITDA and EBITDA margin trends for APAC telcos, Q2-2024

Note: EBITDA for PCCW, Spark, TPG Telecom, SmartTone, 3 Hong Kong, Telstra has been estimated basis H2-2024 results Source: Telco financials, Twimbit analysis
Key highlights
Top line revenue growth driven by increased subscriber addition and higher ARPU contributed to EBITDA growth of telcos like Ufone and Jazz.
Additionally, cost control facilitated EBIDTA growth of telcos like Sri Lanka Telecom, whereas merger synergies with T-Star facilitated EBITDA growth for Taiwan Mobile.
However, relatively lower revenue growth rate/decline in revenue as compared operating costs, negatively impacted the EBITDA margins of leading telcos like Telstra, Spark and CelcomDigi.
Sri Lanka Telecom
Sri Lanka Telecom maintained revenue growth but reduced costs of operation (direct costs) significantly resulting in operating profit increasing by almost six-folds to USD 5.2 million (LKR 1.6 billion). The EBITDA margin increased to 34.5% in Q2-2024.
Ufone - Pakistan
Ufone - Pakistan EBITDA margin increased to 26.3% in Q2-2024 bolstered by strong revenue growth, which offset the impact of inflation and adverse macroeconomic factors.
Jazz - Pakistan
Jazz - Pakistan reported EBITDA margin of 46.4% in Q2-2024, driven by topline revenue growth on account of higher ARPU and customer growth. Additionally, a significant revenue gain of 83.1% from JazzCash and 73.7% from Mobilink Microfinance Bank respectively propelled the revenue growth.
Veon - Kazakhstan
Veon - Kazakhstan EBITDA margin reached 55.8% in Q2-2024, led by increased revenue as a result of higher ARPU, an expanding customer base and increased data and digital service usage that collectively enhanced year-on-year revenue.
Taiwan Mobile
Taiwan Mobile’s EBITDA margin increased to 22.2% in Q2-2024, led by expanded scale and realization of positive impact of the merger with T-Star. Benefitting from the synergies ahead-of-schedule network consolidation, its operating income grew 11% YoY in Q2-2024.
Ooredoo Myanmar
Ooredoo Myanmar’s EBITDA margin declined to 35.6% in Q2-2024, due to sales completion of its operations in the country on May 31, 2024.
Telstra
Telstra's EBITDA margin declined to 29.9% in Q2-2024, owing to decline in EBITDA in Fixed – Enterprise segment, which offset the growth in others segments Mobile, Fixed - C&SB, International and Infrastructure.
Decline in Fixed - Enterprise EBITDA was driven by lower revenue and increased costs in Network Applications and Services (NAS) and Data and Connectivity (DAC) segments.
NAS EBITDA declined due to lower revenue from calling applications and professional services revenue, coupled with increased costs.
DAC EBITDA declined due to reduction in revenue and increased costs.
Telekom Malaysia
Telekom Malaysia’s EBITDA margin decreased to 39.6% in Q2-2024, as its revenue growth declined to 1.7% YoY, which negated the 1% decline in operating cost.
Spark
Spark reported EBITDA margin decline to 33.6% in Q2-2024 owing to decline in decline in revenue despite reduction in the product and labour related operating expenses.
Reduced consumer and business spending along with pricing pressures owing to increased competition impacted the overall revenue growth.
CelcomDigi
CelcomDigi’s EBITDA margin declined to 44.9% in Q2-2024, owing to increase in the expenses incurred, as well as revenue decline.
Cost of goods and services (COGS) increased 13.5% YoY to USD 154.5 million (MYR 731 million), owing to higher materials costs and traffic charges incurred.


* Highest EBITDA margin amongst APAC telcos with EBITDA >=USD 1 billion in Q2-2024
CAPEX analysis of APAC telcos: Q2-2024
Average CAPEX intensity declined to 14.1% in Q2-2024 as compared to 16.4% in Q2-2023, as 4G/5G network deployment of leading telcos reaches completion
Nearly 61% of the 41 telcos analysed reported a YoY CAPEX decline in Q2-2024, up from ~57% in Q2-2023. The maturation of 4G and 5G network rollouts in major markets suggests CAPEX stabilisation or a potential decrease in the upcoming years.
Exhibit 3: CAPEX and CAPEX intensity trends for APAC telcos, Q2-2024

Note: CAPEX for PCCW, Spark, TPG Telecom, SmartTone, 3 Hong Kong, Telstra has been estimated basis H2-2024 results
Source: Telco financials, Twimbit analysis
Key highlights
Capital expenditure (CAPEX) for many telcos has decreased as 4G and 5G network deployments have neared completion, particularly in countries like India and China, where CAPEX had surged in the fiscal years 2022 and 2023.
However, telcos have reported an increase in CAPEX spending due to the deployment of 5G networks and expanding fibre broadband infrastructure.
Furthermore, investments in artificial intelligence, data centre development, and IT integration initiatives have led to higher CAPEX spending for telcos such as SoftBank and KDDI.
Conversely, relatively higher expenses in previous years have prompted telcos like Banglalink and Telekom Malaysia to reduce their CAPEX spending and shift their focus towards network monetization.
CelcomDigi
CAPEX intensity grew to 16.7% in Q2-2023, with spending of USD 109.5 million (MYR 518 million) in Q2-2024.
The telco focused on delivering its network and IT integration initiatives. It included completion of network integration and modernisation efforts in Penang and planned execution of targeted nationwide upgrades with over 8,500 sites modernised at end July 2024.
True Corp
CAPEX spending grew 77.9% YoY in Q2-2024, driven by investments focused on network modernization to increase 5G coverage and enhancement of customer experience.
Vodafone Idea
CAPEX spending grew 68.9% YoY in Q2-2024, driven by increased spending with a view to improve competitiveness in priority circles with improved 4G coverage and Rollout of 5G.
Over the next 3-year period, the telco plans to focus on expanding 4G population coverage in 17 priority circles, capacity expansion to address the increasing data demand, investment in expanding LTE 900 MHZ spectrum in 16 circles to improve network quality and Extensive deployment of TDD, Massive MIMO, and small cells to increase capacity and coverage across the network.
AIS
CAPEX spending grew 47.6% YoY in Q2-2024, led by increased expenditure for 5G network expansion and integration of TTTBB’s operations to expand the broadband network.
Further, investment in digital platform and enterprise solutions, integration of AI to optimise network and IT infrastructure and customer experience enhancement also led to increased CAPEX.
SoftBank
CAPEX spending increased 45.7% YoY in Q2-2024, primarily owing to investments in AI computing platforms and network quality improvements.
Additionally, CAPEX spending for SoftBank and the combined entity of Line, LY Group, and PayPay segments increased by 48.2% and 40.5% YoY, respectively.
Ooredoo Maldives
CAPEX spending declined 65.7% YoY in Q2-2024, owing to higher costs already incurred in 2023 for strategic projects like Disaster Recovery site and Subsea Cable.
Telekom Malaysia
CAPEX declined 51.9% YoY in Q2-2024, due to decline in investments for Access, Core and Support networks.
Banglalink
CAPEX declined 40.8% YoY in Q2-2024, due to higher expenditure already incurred in FY-2022 and FY-2023 for the completion of the 4G network deployment.


* Highest CAPEX spending growth amongst APAC telcos with CAPEX >=USD 500 million in Q2-2024
ARPU analysis of APAC telcos: Q2-2024
ARPU stabilizes with ~55% of telcos reporting YoY growth in Q2-2024
The ARPU analysis for the 35 telcos analysed is as follows:
~55% reported increased ARPU levels in Q2-2024
Nearly 32% reported higher YoY ARPU growth in Q2-2024 compared to Q2-2023
Nearly half (46%) of the telcos % stabilized their ARPU levels in Q2-2024, with YoY changes ranging from -3% to 3%
Exhibit 4: ARPU trends for APAC telcos, Q2-2024

Note:
1. For Average ARPU (in USD), the average currency conversion rate for the period Apr-Jun 2024 has been considered.
2. SingTel ARPU represents Singapore operations.
3. ARPU for Spark, TPG Telecom, Telstra has been estimated basis H2-2024 results
Source: Telco financials, Twimbit analysis
Key highlights
4G and 5G network deployment initiatives have significantly boosted data consumption, leading to increased ARPU for Globe and DITO in the Philippines.
In India, pricing correction strategies adopted by telcos like Bharti Airtel and Reliance Jio to monetize their 4G and 5G services have resulted in ARPU growth.
In Japan, ARPU levels have stabilized due to increased smartphone users and 5G network expansion, offsetting the impact of tariff reductions and regulatory interventions that were evident in mid-2023.
Matured markets like Australia have seen marginal improvements in ARPU due to post-paid and pre-paid tariff increases.
However, in Singapore, despite increased subscriber counts for SingTel and StarHub, ARPU levels have been buoyed by intense competition from Simba Telecom, which has engaged in aggressive pricing strategies primarily targeting the lower end of the market.
Increased competition in select countries has impacted post-paid ARPU levels, leading to an overall decline in ARPU.
Globe
Globe reported highest ARPU growth of 48.7% YoY in Q2-2024, amongst the APAC telcos driven by increased data usage.
Intensive focus on 5G sites deployment, upgradation of sites to LTE along with 5G partnerships with 167 partners across 87 destinations facilitated increased data adoption amongst the users.
Although, overall subscriber declined ~30% YoY in Q2-2024, due to increased competition and after-effects of the SIM registration exercise in 2023, the telco managed to increase its overall blended ARPU primarily led by the prepaid segment.
Jazz - Pakistan
Jazz - Pakistan reported an ARPU growth of 24.6% YoY in Q2-2024, primarily lead by growth in 4G user base and increased 4G penetration, which reached 47.3 million and 66% respectively at the end of Q2-2024.
Additionally, multiplay users accounted for 29% of monthly active 4G customers, which have an ARPU 3.2x higher than voice-only customers.
IOH
The blended ARPU increased by 7.4% YoY in Q2-2024, driven by growth on Postpaid and prepaid ARPU which grew 7% and 38% respectively on YoY basis.
Focus on continuous network expansion with 4G BTS reaching ~188,000, resulted in increased data traffic, also in the key driver facilitating ARPU growth.
LG U+
The ARPU decreased 15.1% YoY due to the introduction of relatively low priced 5G plans. With most premium customers already on 5G and remaining users being slow to upgrade, resulted a dip in 5G growth and overall ARPU.
Telkom Indonesia
The blended ARPU declined by 9.5% YoY in Q2-2024, owing to
Reduced consumer spending post Ramadan and Eid al-Fitr.
IndiHome’s B2C integration into Telkomsel added pressure on ARPU during the shift to digital services.
Far EasTone
The blended ARPU decreased 6.6% in Q2-2024, owing to average 4.7% decline in postpaid ARPU.
Taiwan Mobile
The blended ARPU declined 5.7% in Q2-2024, due decline in postpaid ARPU by ~9%, as competitive 4G pricing continue to negatively impact its smartphone postpaid ARPU.
StarHub
The blended ARPU declined 5.5% YoY Q2-2024, primarily attributed to the decline in postpaid ARPU, with prepaid ARPU remaining stable at USD 5.2 (SGD 7).
Postpaid ARPU declined by 6.3% YoY to USD 22.2 (SGD 30), due to lower IDD revenue, excess data usage, voice usage, voice and data subscriptions, and value-added services (“VAS”) revenues partially mitigated by higher roaming.
Maxis
The blended ARPU fell 4.9% to USD 9.4 (MYR 44.7) in Q2-2024, owing to decline in both prepaid and postpaid ARPU.
Prepaid ARPU declined 6.2% YoY in Q2-2024 owing to intensified market competition, whereas postpaid ARPU declined 4.9% YoY, owing to its strategy to broaden price range of Postpaid plans to attract customers from all segments.


Key strategic developments: Q2-2024
Key strategic partnerships and alliances: Q2-2024
Leading telcos pursued partnerships to enhance network infrastructure, digital transformation, and customer experience. These collaborations focus on areas like 5G, AI, cloud computing, cybersecurity, and sustainability.

* Not an exhaustive list
Source: Company reports and filings, Industry reporting, Twimbit analysis
Key strategic initiatives: Q2-2024

* Not an exhaustive list
Source: Company reports and filings, Industry reporting, Twimbit analysis

* Not an exhaustive list
Source: Company reports and filings, Industry reporting, Twimbit analysis
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