The scale of the capex challenge

摘要

Across asset-intensive sectors, Senior Leadership Teams knew what was expected of them – strong growth in Revenue and EBITDA – and the rewards are; premium EBITDA multiples and superior Investor Returns. But times are changing, markets are maturing and the established success mechanisms seem to break down. What drives EBITDA multiples and how that changes as an industry evolves has become a question of fundamental importance, and so we conducted a wide-ranging study of the telecom industry's performance over the last decade to answer a deceptively simple question: as growth slows, what are the new drivers of EBITDA multiples? Following answering that question we endeavoured to explore the reasons for failure and success in achieving the desired out come and how asset management can potentially play a fundamental role in this area.