A new telco is coming: M1, StarHub brace for earnings cuts
New player will secure 7% of the mobile revenue share by 2022.
It is going to be doomsday for the two lesser telco giants StarHub and M1 as they face another competitor which will definitely shake the telco scene.
According to DBS Group Research, the new telco will secure 7% revenue share by 2022 once it enters in late 2018, citing the trend in Malaysia after U-Mobile entered the sector in September 2007.
"However, TPG could be more destructive than My Republic due to its much larger and stronger balance sheet, implying some downside risk to our earnings estimates on M1 and StarHub," the brokerage firm noted.
The firm noted that StarHub and M1 will see revenue declines of 15% and 24%, respectively in 2022.
DBS also noted that earnings for the two will slump 16% and 31%, respectively in the same year.