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Vodacom vs MTN vs Blue Label Telecoms (Cell C)
Date: 23 Aug 2018 Category: Stock Market |
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In this article we take a look at the share price performance of three of South Africa's main cellular operators being Vodacom, MTN and Blu Label Telecoms (which owns a major stake in Cell C). Sadly the year to date returns and the last 12 months returns of these companies share prices are not encouraging
In fact even looking at their performance over a longer period such as 3 years it is clear, that these companies have not been kind to shareholders and investors over the last couple of years with largely negative returns. |
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So returns of telecoms stocks listed in SA has not been great?
The interactive graphic below shows the share price history of Vodacom (Blue line). As soon as readers select MTN (Yellow line) or Blue Label Telecoms (Black line) in the top left box of the graphic, the graphic recalculates and then shows the share price return of all the selected shares over the period selected. The standard period selected for the graphic is 1 month. But readers can enter their own dates, or select one of the following options:
- 1 month
- 1 year
- YTD (which is the abbreviation for Year to Date)
- MAX (which in this case is 3 years).
Below we provide a few images of various selected time periods as well as the returns achieved over the said period by the three companies.
1 month
The summary provides details of the 1 month return in the share price of the three companies:
- Vodacom: 3.78%
- MTN: -0.93%
- Blue Label Telecoms: -20.99%
Year to Date (YTD)
The summary provides details of the Year to date return in the share price of the three companies:
- Vodacom: -9.54%
- MTN: -23.03%
- Blue Label Telecoms: -51.96%
1 Year
The summary provides details of the 1 year return in the share price of the three companies:
- Vodacom: -29.29%
- MTN: -17.04%
- Blue Label Telecoms: -61.26%
3 Years
The summary provides details of the 3 year return in the share price of the three companies:
- Vodacom: -7.94%
- MTN: -41.40%
- Blue Label Telecoms: -32.65%
So a mixed bag of returns over various periods for the three shares listed. Over the last month Vodacom has provided the best returns, MTN second best and Blue label the worst returns. However over a 1 year period, MTN provided the best returns (even though it was a negative return, it was less negative than both Vodacom and Blue Label telecoms). And over a 3 year period MTN had by far the worst performance of the three companies, with Blue label telecoms have the second worst returns and Vodacom the best returns of the three companies (even though its returns over a three year period was still negative).
If readers look at the image above it is clear that for most of the period in question, Blue label telecoms share price by far outperformed both Vodacom and MTN, if one looks at the period of say 24 August 2015 to 24 August 216, Blue label telecoms provided a return of 90.64%, Vodacom 9.77% and MTN - 31.68%
Its only in the last two months in which Blue label telecoms really started to struggle, with its share price being down 34.76% from 24 June 2018 to 24 August 2018, while during the same time period MTN was down -3.18% and Vodacom notched up a slightly positive return of 2.71% over the last two months.
But to long term shareholders that has been holding these stocks for a number of years, unfortunately the picture doesn't look good, and with the increased use of data on phones, and data prices getting cheaper, we suspect these companies will not be shooting the lights out any time soon/
If readers look at the image above it is clear that for most of the period in question, Blue label telecoms share price by far outperformed both Vodacom and MTN, if one looks at the period of say 24 August 2015 to 24 August 216, Blue label telecoms provided a return of 90.64%, Vodacom 9.77% and MTN - 31.68%
Its only in the last two months in which Blue label telecoms really started to struggle, with its share price being down 34.76% from 24 June 2018 to 24 August 2018, while during the same time period MTN was down -3.18% and Vodacom notched up a slightly positive return of 2.71% over the last two months.
But to long term shareholders that has been holding these stocks for a number of years, unfortunately the picture doesn't look good, and with the increased use of data on phones, and data prices getting cheaper, we suspect these companies will not be shooting the lights out any time soon/