Strategy Analytics: Post-Recession Mobile Recovery Builds in Q1 2010
Mobile Service Revenue Growth Back to 4%
BOSTON--(BUSINESS WIRE)-- Mobile operators increased service revenues four percent in Q1 2010-- and EBITDA by five percent -- as the recovery from 2009's recession-impacted market conditions continues. The new Strategy Analytics report, “Wireless Operator Performance Benchmarking, Q1 2010,” found that a suppressed CAPEX/sales ratio was one of the only negatives in an encouraging set of results.
This Wireless Network Strategies (WNS) research, which tracks the operational and financial performance of 195 mobile operators that account for over 76% of global subscribers, found encouraging signs of a return to growth for mobile operators. Western Europe was the only region to see service revenues fall, although at much slower levels than earlier quarters and cost control measures pushed EBITDA growth into positive territory in the quarter.
| Annual Growth in Mobile Service Revenues | |||||||||||
| 1Q09 | 2Q09 | 3Q09 | 4Q09 | 1Q10 | |||||||
| N America | 4.6% | 2.9% | 2.6% | 2.2% | 5.0% | ||||||
| C/L America | 12.3% | 9.1% | 7.7% | 7.4% | 8.4% | ||||||
| Asia-Pacific | 1.6% | 4.3% | 4.3% | 6.2% | 5.1% | ||||||
| C/E Europe | 2.8% | 0.2% | -3.8% | -3.9% | 0.5% | ||||||
| W Europe | -1.3% | -2.2% | -3.6% | -3.4% | -1.3% | ||||||
| M East & Africa | 8.5% | 5.9% | 3.9% | 6.0% | 7.2% | ||||||
| Global | 2.9% | 2.5% | 1.6% | 2.3% | 3.7% | ||||||
Source: Strategy Analytics, Inc.
“These results are a welcome change from the weak performance seen through 2009,” comments Phil Kendall, Director Wireless Network Strategies. “Continued scrutiny of cost structures provided some relief for operators during the recession, with this renewed revenue growth now contributing to healthier EBITDA gains.”
Susan Welsh de Grimaldo, Director Mobile Broadband Opportunities, adds, “We are still seeing a more cautious attitude to investment, with CAPEX only 11% of service revenues, which puts operators into good cash positions. However continued growth in non-messaging data revenues, and corresponding data traffic growth, will help to fuel the need for further network investment in 2010 and 2011.”
Further results of this research will be presented in a webinar on June 30, 2010: more details here.
About Strategy Analytics
Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. http://www.strategyanalytics.com/
CONTACT:
Strategy Analytics, Inc.
European Contact:
Phil Kendall, +44 1908 423 620
pkendall@strategyanalytics.com
or
US Contact:
Susan Welsh de Grimaldo, +617-614-0724
swelshdegrimaldo@strategyanalytics.com
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