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U.K. (FTSE) Telecom Sector Analysis

UpdatedMay 08, 2024
DataAggregated Company Financials
Companies71
  • 7D2.8%
  • 3M4.7%
  • 1Y-9.5%
  • YTD0.6%

Over the last 7 days, the Telecom industry has risen 2.8%, driven by gains from Informa of 3.9%. During this same period, the Zegona Communications underperformed, falling 7.0%. In the past year, the industry is down 9.5%. Earnings are forecast to grow by 6.2% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 09 May 2024UK£83.1bUK£95.1bUK£12.5b18.9x6.7x0.9x
Sat, 06 Apr 2024UK£80.8bUK£95.0bUK£12.4b20.1x6.5x0.9x
Mon, 04 Mar 2024UK£81.1bUK£95.0bUK£12.3b21.5x6.6x0.9x
Wed, 31 Jan 2024UK£85.7bUK£97.0bUK£12.8b17.9x6.7x0.9x
Fri, 29 Dec 2023UK£86.3bUK£97.7bUK£13.0b17.2x6.6x0.9x
Sun, 26 Nov 2023UK£82.8bUK£97.1bUK£13.0b15.2x6.4x0.9x
Tue, 24 Oct 2023UK£80.0bUK£98.2bUK£14.2b17.6x5.6x0.8x
Thu, 21 Sep 2023UK£86.0bUK£97.8bUK£14.1b19.3x6.1x0.9x
Sat, 19 Aug 2023UK£80.4bUK£97.0bUK£14.0b17.4x5.8x0.8x
Mon, 17 Jul 2023UK£84.9bUK£95.8bUK£13.9b20.8x6.1x0.9x
Wed, 14 Jun 2023UK£87.6bUK£96.0bUK£13.9b20.9x6.3x0.9x
Fri, 12 May 2023UK£93.5bUK£97.2bUK£5.4b21.6x17.5x1x
Sun, 09 Apr 2023UK£92.7bUK£97.7bUK£5.4b20.2x17.3x0.9x
Tue, 07 Mar 2023UK£99.4bUK£97.9bUK£5.6b16.2x17.8x1x
Thu, 02 Feb 2023UK£93.0bUK£96.7bUK£5.5b17x16.8x1x
Sat, 31 Dec 2022UK£91.7bUK£100.4bUK£5.8b18.3x15.8x0.9x
Mon, 28 Nov 2022UK£98.7bUK£99.4bUK£5.6b19x17.7x1x
Wed, 26 Oct 2022UK£95.8bUK£99.3bUK£5.2b17.7x18.5x1x
Fri, 23 Sep 2022UK£101.4bUK£99.4bUK£5.2b19.1x19.4x1x
Sun, 21 Aug 2022UK£110.8bUK£97.7bUK£5.0b23.1x22x1.1x
Tue, 19 Jul 2022UK£113.1bUK£96.2bUK£4.0b22.3x28.2x1.2x
Thu, 16 Jun 2022UK£111.5bUK£96.6bUK£4.0b20.8x27.6x1.2x
Sat, 14 May 2022UK£114.4bUK£95.0bUK£2.0b23.6x57.6x1.2x
Mon, 11 Apr 2022UK£125.0bUK£93.1bUK£2.6b24.5x48.3x1.3x
Wed, 09 Mar 2022UK£112.6bUK£92.5bUK£2.4b28.7x46.6x1.2x
Fri, 04 Feb 2022UK£132.6bUK£92.6bUK£2.0b31.6x67.3x1.4x
Sun, 02 Jan 2022UK£129.2bUK£92.3bUK£1.9b35.9x66.9x1.4x
Tue, 30 Nov 2021UK£124.8bUK£92.5bUK£1.8b35.6x68x1.3x
Thu, 28 Oct 2021UK£125.1bUK£91.6bUK£1.9b38.9x66.2x1.4x
Sat, 25 Sep 2021UK£130.9bUK£92.0bUK£1.9b35.6x69.3x1.4x
Mon, 23 Aug 2021UK£134.4bUK£91.6bUK£1.9b35.6x71.9x1.5x
Sat, 10 Jul 2021UK£133.3bUK£91.5bUK£1.9b34.6x71.3x1.5x
Price to Earnings Ratio

1012.1x


Total Market Cap: UK£130.7bTotal Earnings: UK£129.1mTotal Revenue: UK£90.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 58.1x202220232024
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 6.7x which is lower than its 3-year average PE of 58.1x.
  • The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.87x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 359% 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 Market1.96%
Telecom2.82%
Interactive Media and Services6.37%
Entertainment4.18%
Media2.94%
Telecom Services and Carriers1.56%
Wireless Telecom1.15%
Industry PE
  • Investors are most optimistic about the Media industry even though it's trading below its 3-year average PE ratio of 52.0x.
    • Analysts are expecting annual earnings growth of 21.6%, which is higher than its past year's earnings decline of 7.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings decline of 56% per year.
  • In contrast, the Wireless Telecom industry is expected to see its earnings decline by 16% 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
INF InformaUK£8.506.2%
+UK£660.7m		21.8%PE27.5x
AUTO Auto Trader GroupUK£7.435.9%
+UK£368.2m		18.4%PE28.4x
RMV RightmoveUK£5.618.0%
+UK£329.6m		-0.5%PE22.4x
WPP WPPUK£8.353.5%
+UK£302.5m		-6.0%PE81.2x
ITV ITVUK£0.745.9%
+UK£164.5m		-3.6%PE14.1x
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UK£0.41

Centaur Media

7D

-21.7%

1Y

-13.5%

INF

UK£8.50

Informa

7D

6.2%

1Y

21.8%

GAMA

UK£13.96

Gamma Communications

7D

6.6%

1Y

21.4%

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YOU

UK£8.32

YouGov

7D

-5.0%

1Y

1.2%

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ZEG

UK£2.20

Zegona Communications

7D

-4.3%

1Y

331.4%

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May 05
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MIRI

UK£0.013

Mirriad Advertising

7D

-40.9%

1Y

-58.7%

FUTR

UK£7.74

Future

7D

16.0%

1Y

-26.4%

SFOR

UK£0.48

S4 Capital

7D

-4.3%

1Y

-65.6%

AAF

UK£1.16

Airtel Africa

7D

3.6%

1Y

-1.8%

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AUTO

UK£7.43

Auto Trader Group

7D

5.9%

1Y

18.4%

ITV

UK£0.74

ITV

7D

5.9%

1Y

-3.6%

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WPP

UK£8.35

WPP

7D

3.5%

1Y

-6.0%

LBG

UK£0.75

LBG Media

7D

-2.9%

1Y

-26.3%

XLM

UK£0.12

XLMedia

7D

-6.4%

1Y

3.3%

RMV

UK£5.61

Rightmove

7D

8.0%

1Y

-0.5%

BMY

UK£5.32

Bloomsbury Publishing

7D

-1.5%

1Y

25.5%

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