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U.K. (FTSE) Telecom Sector Analysis

UpdatedJan 20, 2025
DataAggregated Company Financials
Companies71
  • 7D3.5%
  • 3M-1.5%
  • 1Y11.0%
  • YTD-1.1%

Over the last 7 days, the Telecom industry has risen 3.5%, driven by gains in Vodafone Group and Informa of 3.9% and 5.3%, respectively. Meanwhile, Gamma Communications actually underperformed within the industry, shrinking 7.7% in the last week. This takes the industry's 12 month performance to a gain of 11%. Earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

Has the U.K. Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 21 Jan 2025UK£87.7bUK£88.0bUK£4.5b16.9x19.5x1x
Thu, 19 Dec 2024UK£88.5bUK£87.0bUK£4.4b19.4x20x1x
Sat, 16 Nov 2024UK£84.7bUK£87.4bUK£4.4b16.9x19.1x1x
Mon, 14 Oct 2024UK£87.5bUK£86.9bUK£3.7b20x23.9x1x
Wed, 11 Sep 2024UK£89.1bUK£87.4bUK£3.6b19.5x24.8x1x
Fri, 09 Aug 2024UK£85.8bUK£88.1bUK£3.6b21.1x23.8x1x
Sun, 07 Jul 2024UK£87.3bUK£87.6bUK£3.2b18.4x27.5x1x
Tue, 04 Jun 2024UK£90.3bUK£87.7bUK£3.2b21.8x28.6x1x
Thu, 02 May 2024UK£81.1bUK£95.0bUK£12.4b18.2x6.5x0.9x
Sat, 30 Mar 2024UK£82.5bUK£94.9bUK£12.4b21.2x6.6x0.9x
Mon, 26 Feb 2024UK£80.2bUK£94.9bUK£12.2b21.1x6.6x0.8x
Wed, 24 Jan 2024UK£84.6bUK£97.1bUK£12.8b17.2x6.6x0.9x
Fri, 22 Dec 2023UK£86.4bUK£97.7bUK£13.0b17x6.6x0.9x
Sun, 19 Nov 2023UK£83.8bUK£97.5bUK£13.1b16.6x6.4x0.9x
Tue, 17 Oct 2023UK£83.4bUK£97.9bUK£14.2b16.9x5.9x0.9x
Thu, 14 Sep 2023UK£84.5bUK£97.3bUK£14.0b20.3x6x0.9x
Sat, 12 Aug 2023UK£83.4bUK£97.4bUK£14.1b18.1x5.9x0.9x
Mon, 10 Jul 2023UK£81.9bUK£95.7bUK£13.9b20.5x5.9x0.9x
Wed, 07 Jun 2023UK£88.7bUK£96.3bUK£13.9b21.2x6.4x0.9x
Fri, 05 May 2023UK£94.4bUK£97.2bUK£5.4b21.6x17.6x1x
Sun, 02 Apr 2023UK£92.9bUK£97.3bUK£5.4b20.3x17.4x1x
Tue, 28 Feb 2023UK£98.4bUK£97.5bUK£5.6b16.3x17.5x1x
Thu, 26 Jan 2023UK£92.9bUK£96.4bUK£5.5b16.7x16.8x1x
Sat, 24 Dec 2022UK£91.6bUK£100.1bUK£5.8b17.8x15.8x0.9x
Mon, 21 Nov 2022UK£98.6bUK£99.9bUK£5.6b19.6x17.6x1x
Wed, 19 Oct 2022UK£95.7bUK£99.5bUK£5.2b18.8x18.4x1x
Fri, 16 Sep 2022UK£103.6bUK£99.0bUK£5.3b21x19.5x1x
Sun, 14 Aug 2022UK£113.3bUK£97.7bUK£4.9b21.7x23.2x1.2x
Tue, 12 Jul 2022UK£114.8bUK£96.0bUK£4.1b21x28x1.2x
Thu, 09 Jun 2022UK£116.6bUK£95.7bUK£4.1b24.1x28.6x1.2x
Sat, 07 May 2022UK£116.0bUK£95.0bUK£2.0b24.9x58.4x1.2x
Mon, 04 Apr 2022UK£123.4bUK£93.1bUK£2.7b24.4x46.5x1.3x
Wed, 02 Mar 2022UK£124.5bUK£92.2bUK£2.2b30.7x55.7x1.4x
Fri, 28 Jan 2022UK£129.0bUK£92.0bUK£1.9b32x66.7x1.4x
Price to Earnings Ratio

66.7x


Total Market Cap: UK£129.0bTotal Earnings: UK£1.9bTotal Revenue: UK£92.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 21.7x202320242025
Current Industry PE
  • Investors are pessimistic on the British Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 19.5x which is lower than its 3-year average PE of 21.7x.
  • The industry is trading close to its 3-year average PS ratio of 1.1x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 33% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

Which industries have driven the changes within the U.K. Telecom sector?

GB Market3.34%
Telecom3.51%
Wireless Telecom4.77%
Media3.99%
Interactive Media and Services3.78%
Telecom Services and Carriers1.28%
Entertainment-0.092%
Industry PE
  • Investors are most optimistic about the Interactive Media and Services industry even though it's trading below its 3-year average PE ratio of 102x.
    • Analysts expect its future annual earnings growth (9.2%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is better than its past earnings decline of 25% per year.
  • In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 9.2% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
VOD Vodafone GroupUK£0.704.3%
+UK£706.6m		2.5%PE8.9x
INF InformaUK£8.376.4%
+UK£665.8m		10.9%PE35.4x
BT.A BT GroupUK£1.422.4%
+UK£323.3m		23.6%PE18.2x
RMV RightmoveUK£6.646.3%
+UK£310.8m		23.0%PE26.3x
AAF Airtel AfricaUK£1.246.6%
+UK£280.5m		-2.8%PS1.2x
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Latest News

INF

UK£8.37

Informa

7D

6.4%

1Y

10.9%

VOD

UK£0.70

Vodafone Group

7D

4.3%

1Y

2.5%

Little Excitement Around Vodafone Group Public Limited Company's (LON:VOD) Revenues

Jan 18
Little Excitement Around Vodafone Group Public Limited Company's (LON:VOD) Revenues

EMAN

UK£0.44

Everyman Media Group

7D

-13.7%

1Y

-25.4%

Be Wary Of Everyman Media Group (LON:EMAN) And Its Returns On Capital

Jan 18
Be Wary Of Everyman Media Group (LON:EMAN) And Its Returns On Capital

TRST

UK£3.30

Trustpilot Group

7D

22.7%

1Y

94.0%

AAF

UK£1.24

Airtel Africa

7D

6.6%

1Y

-2.8%

AUTO

UK£7.84

Auto Trader Group

7D

2.6%

1Y

6.9%

Auto Trader Group plc's (LON:AUTO) Popularity With Investors Is Under Threat From Overpricing

Jan 16
Auto Trader Group plc's (LON:AUTO) Popularity With Investors Is Under Threat From Overpricing

STVG

UK£1.99

STV Group

7D

-4.3%

1Y

4.2%

GAMA

UK£13.28

Gamma Communications

7D

-5.7%

1Y

14.5%

LBG

UK£1.27

LBG Media

7D

-2.7%

1Y

58.1%

WPP

UK£7.44

WPP

7D

3.1%

1Y

2.3%

WPP plc's (LON:WPP) Intrinsic Value Is Potentially 59% Above Its Share Price

Jan 06
WPP plc's (LON:WPP) Intrinsic Value Is Potentially 59% Above Its Share Price

RMV

UK£6.64

Rightmove

7D

6.3%

1Y

23.0%

ZEG

UK£3.92

Zegona Communications

7D

-1.5%

1Y

115.4%

MOS

UK£0.0042

Mobile Streams

7D

-10.6%

1Y

636.8%

BT.A

UK£1.42

BT Group

7D

2.4%

1Y

23.6%

SYS1

UK£5.90

System1 Group

7D

-4.8%

1Y

100.0%

TMO

UK£0.48

Time Out Group

7D

-2.0%

1Y

-9.4%