- Post post-COVID recovery, we see competition in the mobile and fixed broadband (FBB) space inching up. While mobile consolidation was a hope of competitive rationalisation, Simba’s improving fundamentals, balance sheet scale and wide ARPU gap vs incumbents suggest it is favourably placed to continue to take market share.
Competition may remain elevated
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Simba ready to join the pride…
- With just 4.8% revenue market share (1.2ppt RMS gain in past year), Simba has attained a healthy 42% EBITDA margin and is already FCF positive. This came as a positive surprise as telcos in regional markets are not able to achieve this feat even at 15-20% revenue market share.
- With Simba’s Sim only plans still priced 50% below incumbents and its attractive roaming offers, we see ample room to gain lower-end market share. Simba also has room to invest in the network and potentially make inroads in the higher end market.
- Simba recently entered the highly commoditised FBB space and is looking at the experience of MyRepublic and M1, and we see room for it to take 5-6% market share.
…may result in less effective industry consolidation
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Hussaini Saifee Maybank Research | https://www.maybank.com/ 2024-10-29
