Aussie telcos to focus on profit margin than cost-cutting target, Goldman Sachs says

Spark New Zealand

09/09/2024 04:13

** Analysts at Goldman Sachs expect Australian
telecommunication operators to focus on maintaining a certain
profit margin than immediately pivot towards a cost-cutting
target
    ** Brokerage highlights the market weakness around industry
mobile business trends with poor subscribers growth and risk of
contract renewals
    ** GS expects capital expenditure for the entire telco
industry in Australia to keep declining in fiscal 2025
    ** Brokerage disappointed with FY24 results from Spark
 SPK.NZ , which missed its outlook
    ** Says telecom major Telstra  TLS.AX  posted a "solid" FY24
result with a strong fixed line and global performance
    ** Adds mobile postpaid (and Vodafone prepaid) subscribers
meaningfully declined in the half for TPG Telecom  TPG.AX  that
displays the current market dynamics

    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))