ING Economic and Financial Analysis | Jan 31, 2021 08:00AM ET
COVID-19 has had limited impact on most telecom companies' operational performances and balance sheet strength thus far, but still, we expect 2021 to be another year of low-single-digit growth for the sector. In this Outlook, we identify key themes to watch in 2021 and beyondh2 Executive summary/h2
Telecom companies have been incredibly strategically important to keep economies and societies going during the pandemic and Covid-19 lockdowns.
Working from home, homeschooling and streaming entertainment services have resulted in a substantial rise in data usage on fixed networks in 2020.
Covid-19 has had limited impact on most telecom companies' operational performances and balance sheet strength thus far. Areas affected include lower roaming fees due to travel restrictions and a decline in handset sales due to store closures.
We expect 2021 will be another year of slow growth. Service revenues are expected to show some recovery during the year as travel recovers. Our base case scenario for the sector is a flat full-year revenue performance. Ongoing cost-saving programs further support the EBITDA result, and we expect low-single-digit growth for the sector.
h2 In this report, we identify key themes to watch in 2021 and beyond/h2Content Disclaimer: The information in the publication is not an investment recommendation and it is not an investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. Read more
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