Telcos cut expenditure after slump

Two years of difficult trading conditions has resulted in every major telecommunications supplier company reducing capital expenditure, according to SchroderSalomonSmithBarney (SSSB). Robert Mocatta, analyst at SSSB, said that projected capex cuts are above 10% for most large telcos but the companies have not changed their revenue or operating cashflow forecasts to match. The result, he said, is that the projected apparent cash generation each company is expecting has increased. Mocatta said: 'We are concerned that either revenue or margin expectations may be too high as a result. Our f...