While Q2 2023 witnessed a lower growth level of 4.1 percent for telcos across the Asia Pacific (APAC) region compared to the previous 5 quarters (refer to Exhibit 1), the consistent growth in revenues has enabled APAC telcos to surpass the USD 150 billion mark in Q2 2023.
Exhibit 1: Overall performance of APAC telcos in Q2 2023
6 of the 42 telcos achieved double-digit revenue growth (refer to Exhibit 2), with Robi Axiata holding the top spot at a 20.6 percent YoY revenue growth rate, totalling to ~USD 237.2 million (BDT 25.4 billion). This growth was fueled by the increase in data revenue by ~30 percent YoY.
And despite the prevailing high competition intensity, the top three Indian telcos achieved a 10% YoY revenue growth rate in Q2 2023. Meanwhile, XL Axiata and Indosat Ooredoo Hutchison (IOH) in Indonesia exhibited notable revenue progress in Q2 2023, which is expected to persist throughout 2023.
Exhibit 2: Revenue trends (% change) for APAC telcos (YoY basis), Q2 2023
Telcos across the Asia Pacific reported the highest average EBITDA margin (34.7 percent), with 32 of the 42 telcos experiencing positive changes in EBITDA (refer to Exhibit 3).
Indosat Ooredoo Hutchison (IOH) recorded the highest EBITDA increase by 26.2 percent YoY to reach IDR 6.1 trillion (USD 677.9 million). This increase is due to the telco’s efforts in cost optimization and the festive Lebaran season, which positively impacted the telco’s revenue and EBITDA growth.
In contrast, Sri Lanka Telecom’s EBITDA dropped by 32 percent YoY to LKR 6.9 billion (USD 22.3 million) in Q2 2023. This decline can be attributed to the telco’s 15.1 percent increase in group operating expenditure (OPEX).
“Overall, the trends that the telecom industry have achieved in Q2 2023 signify a more focused commitment towards improving cost efficiency and reducing OPEX,” – Aryaman Seth (Research Analyst, Twimbit)
Exhibit 3: EBITDA and EBITDA margin trends for APAC telcos (YoY basis), Q2 2023
Twimbit clients can read more in “APAC Telcos Update Q2 2023”.
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