U.K. (FTSE) Communications Industry Analysis

Industry Valuation and Performance

Has the U.K. Communications Industry valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE
Thu, 25 Nov 2021	UK£2.5b	UK£709.6m	UK£74.5m	28.2x
Sat, 23 Oct 2021	UK£2.9b	UK£935.3m	UK£75.2m	44.4x
Mon, 20 Sep 2021	UK£3.0b	UK£935.8m	UK£75.2m	42.1x
Wed, 18 Aug 2021	UK£2.6b	UK£681.9m	UK£70.4m	30.3x
Wed, 02 Jun 2021	UK£2.3b	UK£676.6m	UK£68.2m	35x
Sat, 06 Mar 2021	UK£2.3b	UK£678.7m	UK£64.3m	55.3x
Tue, 08 Dec 2020	UK£2.3b	UK£700.0m	UK£68.8m	38x
Mon, 31 Aug 2020	UK£2.6b	UK£692.1m	UK£70.7m	28.8x
Thu, 04 Jun 2020	UK£2.1b	UK£679.4m	UK£63.3m	54.9x
Sun, 08 Mar 2020	UK£1.7b	UK£627.0m	UK£59.6m	21.8x
Sat, 30 Nov 2019	UK£1.7b	UK£653.4m	UK£61.3m	23.7x
Tue, 03 Sep 2019	UK£1.5b	UK£632.3m	UK£55.3m	18.3x
Fri, 07 Jun 2019	UK£1.3b	UK£617.0m	UK£55.2m	14x
Thu, 28 Feb 2019	UK£1.3b	UK£619.7m	UK£50.3m	15.3x
Sun, 02 Dec 2018	UK£1.2b	UK£597.2m	UK£35.4m	14.8x

PE Ratio

14.8x

Sun, 02 Dec 2018

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 27.6x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Communications industry have grown 28% per year over the last three years, and revenues for these companies have grown 5.9% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.K. Communications industry?


Communications Equipment	-2.72%

Industry PE: Investors are most optimistic about the Communications Equipment industry, which is trading close to its 3-year average PE ratio of 27.6x. However analysts are expecting annual earnings growth of 8.3%, which is lower than the prior year's growth of 62% per year. So the market might believe that analysts are underestimating future growth.

Forecasted Growth: Analysts are most optimistic on the Communications Equipment industry, expecting annual earnings growth of 8.3% over the next 5 years. However this is lower than its past earnings growth rate of 62% per year.

	Company	7D	1Y	Valuation
	MWE M.T.I Wireless Edge	3.2%+UK£2.2m	30.9%	PE26x

Company

Valuation

MWE M.T.I Wireless Edge

3.2%+UK£2.2m

30.9%

PE26x

Aferian Plc (AIM:AFRN) completed the acquisition of 8% stake in 24i Unit Media B.V.

Aferian Plc (AIM:AFRN) agreed to acquire remaining 8% stake in 24i Unit Media B.V. for €3.3 million on August 3, 2021. The amount due to the founders of 24i under the Put Option is €3,305,248 ($3,900,193), which is the same price paid per share as for the 92% shareholding acquired in July 2019. In accordance with the Put Option, it is at Aferian's election as to whether the consideration is settled by either cash or the issue of new ordinary shares in Aferian. Aferian has up to 15 business days from the exercise notice to make this election. It is anticipated that Aferian will pay cash of €1,000,000 ($1,180,000) with the remaining €2,305,348 ($2,720,193) to be settled through the issue of Ordinary Shares. The number of Ordinary Shares to be issued is dependent upon the volume weighted average price of an Ordinary Share for the 60 business days prior to today's date. A further announcement will be made in due course. Further to Aferian's interim results announcement released earlier today, Aferian has received an exercise notice from the founders of 24i with regards to their intention to exercise the put option agreement ("Put Option") that formed part of the acquisition as announced on 15 July 2019. The Put Option was over the remaining 8% minority interest in 24i. Upon completion of the acquisition of the outstanding 8% minority interest, 24i and its subsidiaries will be wholly-owned subsidiaries of Aferian. Following the completion, Aferian will benefit from the inclusion of a further 8% of the results of 24i and its subsidiaries. Under the terms of the acquisition, the Ordinary Shares are subject to a lock-in between the 24i vendors and Aferian that restrict the 24i vendors from disposing of the new Ordinary Shares for a period of 12 months. Aferian Plc (AIM:AFRN) completed the acquisition of 8% stake in 24i Unit Media B.V. on August 16, 2021. The consideration will be paid in full within five days.

U.K. (FTSE) Communications Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

CLX

First half 2022 earnings: EPS and revenues exceed analyst expectations

TRAK

First half 2022 earnings released: EPS UK£0.005 (vs UK£0.015 loss in 1H 2021)

FTC

Less than half of directors are independent

MWE

Third quarter 2021 earnings released: EPS US$0.011 (vs US$0.01 in 3Q 2020)

SPT

A Look At The Intrinsic Value Of Spirent Communications plc (LON:SPT)

TST

These 4 Measures Indicate That Touchstar (LON:TST) Is Using Debt Reasonably Well

SRT

Shareholders Will Probably Not Have Any Issues With SRT Marine Systems plc's (LON:SRT) CEO Compensation

BVC

First half 2021 earnings released: EPS US$0.027 (vs US$0.004 in 1H 2020)

AFRN

Aferian Plc (AIM:AFRN) completed the acquisition of 8% stake in 24i Unit Media B.V.