SCG, a British provider of telecom and cloud services to companies, is exploring a sale and is seeking a valuation of as much as £800 million ($1.05 billion) https://t.co/8lVFWmmzIl ...

Financial Data and Key Metrics Changes - Revenues grew 7.5% year-on-year in USD terms, reaching $1.115 billion in Q3 2025 [4][22] - USD EBITDA increased by 19.7% year-on-year, amounting to $524 million, with an EBITDA margin of 47%, up 400 basis points year-on-year [4][22] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [7][8] - Direct digital revenues surged 63% year-on-year, now contributing 17.8% of total group revenues [4][22] Business Line Data and Key Metrics Changes - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting differentiated networks and services [7] - Digital services now account for 17.8% of total revenues, up from 11% a year ago [22] - Multiplay customers, who use at least one digital service in addition to voice and data, generated 55.4% of total customer revenues, growing revenue-wise by 23% year-on-year [11][12] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which returned to year-on-year growth for the first time in 14 months [12] - VLINE Kazakhstan's revenues grew 23.3% on a like-for-like basis, adjusting for TNS Plus deconsolidation [12] - The financial services business in Pakistan saw gross transaction value rise 40% year-on-year, representing 13% of Pakistan's GDP [13] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [5][6] - The company is committed to enhancing its digital services portfolio, with AI integration becoming central to operations [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macro and geopolitical challenges, revising EBITDA growth outlook to 16%-18% in local currency terms for the full year [24] - The board approved a $100 million share and/or bond repurchase program, reflecting confidence in growth prospects [6][24] - Management highlighted the importance of digital engagement exceeding mobile engagement, indicating a shift in customer interaction [15] Other Important Information - The listing of Kyivstar on NASDAQ unlocked significant value, with a current market valuation of $2.8 billion [6] - The company retains an 89.6% stake in Kyivstar, valued at $2.5 billion at current market prices [6] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [23] Q&A Session Summary Question: Motivation for choosing a SPAC structure for Kyivstar's listing - Management believed in Ukraine's future and opted for a De-SPAC process to fast-track the listing, achieving a valuation of $2.8 billion [26][27] Question: Plans for cash at headquarters level - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [27][28] Question: Future of tower assets in Ukraine - The company aims to pursue an asset-light strategy, considering independent tower companies for better infrastructure management [29][30] Question: Financial services growth in Pakistan - The financial services business is growing steadily, with a focus on microloans and a significant merchant network driving cashless transactions [32][33] Question: Plans for ride-hailing business expansion - The ride-hailing business operates in 28 cities, with plans to explore growth in other markets on a city-by-city basis [44] Question: Digital banking license for MMBL - The company is considering upgrading to a full digital bank license to enhance capabilities and contribute to the cashless economy initiative [43]

Core Insights - Kyivstar Group Ltd reported a strong financial performance in Q3 2025, with total revenue growth of 20.9% year-over-year, reaching UAH 12.3 billion (USD 297 million) [3][10] - The company's EBITDA increased by 21.5% year-over-year to UAH 7.1 billion (USD 171 million), with an EBITDA margin of 57.6% [4][10] - Digital revenue surged by 531% to UAH 1.5 billion (USD 35 million), now accounting for nearly 12% of total revenues, driven by the acquisition of Uklon [5][10] Financial Performance - Total revenue grew to UAH 12.3 billion, reflecting a 20.9% increase YoY, and a 19.8% increase in USD terms [3][10] - EBITDA rose to UAH 7.1 billion, marking a 21.5% YoY growth, with a 20.4% increase in USD terms [4][10] - Adjusted net profit was reported at USD 73 million, excluding a non-cash charge of USD 162 million related to the company's listing [10] Digital Strategy - Direct digital revenue reached UAH 1.5 billion, contributing 11.9% to total revenue, supported by the integration of Uklon [5][10] - The number of multiplay users increased by 24.8% YoY to 6.6 million, representing 31.7% of one-month-active mobile customers [5][10] - Digital monthly active users (MAUs) grew by 49.4% to 13.5 million, indicating strong customer engagement [10] Strategic Initiatives - Kyivstar became the first Ukrainian company to list on the NASDAQ on August 15, 2025 [7] - The company is advancing its digital ecosystem, including the launch of Ukraine's first Starlink Direct to Cell network and the development of a national large language model in partnership with the Ministry of Digital Transformation [7][9] - Kyivstar plans to invest USD 1 billion in Ukraine from 2023 to 2027, focusing on infrastructure and technological development [15] Future Outlook - The company anticipates revenue growth of 24% to 27% YoY and EBITDA growth of 23% to 26% YoY in UAH terms for the full year [8] - In USD terms, revenue growth is expected to be between 20% to 23% YoY, with EBITDA growth of 19% to 22% YoY for 2025 [8]

9 November 2025 | 4:31PM EST Economics Research GLOBAL MARKETS ANALYST AI Versus the 1990s—The Path from Macro Boom to Macro Bubble Dominic Wilson +1(212)902-5924 | dominic.wilson@gs.com Goldman Sachs & Co. LLC Vickie Chang +1(212)902-6915 | vickie.chang@gs.com Goldman Sachs & Co. LLC Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. ...

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] Investment Focus - The company has diversified its investments across various sectors including banking, telecommunications, logistics, and hotels, indicating a strategic approach to portfolio management [1] - The entry into the US market in 2020 reflects a growing interest in international investment opportunities, particularly in sectors like banks, hotels, and logistics [1] Market Trends - The popularity of insurance companies in the Philippines since 2014 suggests a shift in investment preferences among local investors, moving towards more diversified financial products [1] - The trend of using platforms like Seeking Alpha for analysis indicates a growing reliance on data-driven investment strategies among investors in both the ASEAN and US markets [1]

Market Overview - Indian markets opened significantly lower, continuing a downward trend for the third consecutive session, influenced by a steep selloff on Wall Street and weak Asian market cues [1][2] - The BSE Sensex fell by 564.32 points (0.68%) to 82,746.69, while the NSE Nifty dropped by 172.65 points (0.68%) to 25,337.05 [1] Sector Performance - The banking and financial services sector showed mixed trends, with ICICI Bank gaining 0.81% to ₹1,331.10, while State Bank of India declined by 1.41% to ₹947.20 [3] - Adani Enterprises and Shriram Finance also saw slight gains, while HDFC Life and Max Healthcare advanced in the insurance space [3] Technology Sector - Technology stocks faced significant selling pressure, with Bharti Airtel dropping 4.24% to ₹2,006.10, and other major players like HCL Technologies, Wipro, and TCS also experiencing declines [4] Foreign Institutional Investors (FIIs) Activity - Despite Domestic Institutional Investors (DIIs) buying ₹5,283 crore worth of stocks, FIIs sold ₹3,263 crore, leading to continued market decline [3] - The selling pressure from FIIs is overpowering the buying from DIIs, contributing to the market's downward movement [3] Economic Indicators and Sentiment - Global sentiment turned negative due to weak US job data, renewed layoffs in the tech sector, and concerns over AI valuations, leading to heavy profit booking in growth stocks [2] - The ongoing US government shutdown has suspended the release of key economic indicators, complicating the Federal Reserve's policy outlook [2] Commodities Market - Precious metals like gold and silver found support despite profit booking, with gold prices supported at ₹1,19,870-₹1,19,280 [5] - Crude oil prices declined to two-week lows due to rising supply and weakening demand, with an unexpected inventory build of 5.2 million barrels reported [6] Investment Strategy - Current market conditions are seen as an opportunity for investors to adjust portfolios towards fairly-valued large caps, particularly in banking and pharmaceuticals, where growth prospects remain positive [7]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Security, Resilience, and Defense** sectors as critical areas for investment in 2026, reflecting a pivot from previous strategies [2][3][4]. Core Insights and Arguments 1. **Adaptation Funding Gap**: The adaptation funding gap is estimated to be between **$194 billion and $366 billion per year**, highlighting the financial challenges faced by multiple stakeholders due to climate events [3][4]. 2. **Investment Opportunities**: - **Defense Capability Domains**: Future investment opportunities are identified in areas such as **drones, electronic warfare, AI, and mobility** [4]. - **Digital Economy**: Emerging investment domains include **cybersecurity, electronic warfare, and space** [4]. - **Critical Minerals**: Essential for energy transition, critical minerals like **lithium, nickel, cobalt, manganese, and graphite** are highlighted as key components for future investments [4][28]. 3. **Energy Transition**: - Global investment in energy transition surpassed **$2.08 trillion** in 2024, marking an **11% increase year-on-year** and doubling the investment from 2020 [12]. - **Electrified Transport** received the largest investment at **$757 billion**, with a **20% increase** in EV spending [12]. - **Renewable Energy** investments reached **$728 billion**, with **$500 billion** allocated to solar energy alone [12]. 4. **Water and Food Security**: - Water security is deemed essential for long-term resilience, impacting national security and economic stability [9]. - Food systems must adapt to climate shocks, emphasizing the importance of **soil health, biodiversity, and water management** [9]. 5. **Climate Adaptation**: - The need for resilient infrastructure is emphasized, including retrofitting and innovations in cooling and flood simulation technologies [11][20]. - Climate adaptation is a top priority for green bond issuances, with **China** leading in green bond issuance at **$85 billion** in 2023 [25]. Additional Important Insights - **Geopolitical Challenges**: The demand for critical minerals is increasing due to decarbonization efforts, leading to geopolitical tensions, particularly between the U.S. and China regarding tariffs and export controls [28]. - **Cybersecurity**: The need for cybersecurity solutions is growing, with companies providing technology for **cyber resilience and defense** being identified as key players in the market [29]. - **Regulatory Developments**: Recent regulatory actions in various countries, including the UK and Japan, indicate a shift towards prioritizing cybersecurity and defense as critical national infrastructure [33][54]. This summary encapsulates the critical themes and insights from the conference call, focusing on the evolving landscape of investment opportunities in security, resilience, and defense sectors.

Financial Data and Key Metrics Changes - Crexendo reported a 12% year-over-year revenue growth, reaching $17.5 million for Q3 2025 [14] - GAAP net income was $1.5 million, or $0.05 per share, compared to $100,000, or $0.01 per share, in Q3 2024 [15] - Non-GAAP net income increased to $3 million, or $0.10 per share, from $1.7 million, or $0.06 per share, in the same quarter last year [16] - EBITDA for the quarter was $2.1 million, up from $1 million in Q3 2024 [16] - Cash equivalents increased to $28.6 million from $18.2 million at the end of 2024 [16] Business Line Data and Key Metrics Changes - Software solutions revenue grew 28% year-over-year to $7.5 million [14] - Service revenue increased 8% to $8.6 million [14] - Product revenue decreased 25% to $1.4 million, but was slightly above the historical average [14] - Telecom services retail segment grew 2% organically, with telecom service revenue up 8% [20] Market Data and Key Metrics Changes - Remaining performance obligations increased to $87.9 million, up from $83.5 million at the end of June 2025 [15] - International revenue is growing rapidly, although it still represents less than 10% of total revenue [10] Company Strategy and Development Direction - The company is focused on organic growth and strategic M&A opportunities, with plans to close an acquisition by early next year [11] - Investments in AI-driven capabilities and Oracle Cloud Infrastructure are expected to enhance growth and operational efficiency [5][10] - The company aims to maintain its competitive advantage through superior customer service and innovative product offerings [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth through the next year [12] - The company is optimistic about the future, citing strong demand for its products and a talented workforce [11][26] - Management highlighted the importance of customer service as a differentiator in a commoditized market [20] Other Important Information - The company surpassed 7 million end users on its platform, marking a significant milestone [7] - The annual user group meeting in Miami was the most successful in history, with record attendance and excitement about innovations [6][8] Q&A Session Summary Question: Pipeline for new licensees and Q4 setup - Management indicated that growth in users can be estimated based on past performance, but specific numbers for new logos are still uncertain [31][32] Question: Measuring success of new AI products - Management plans to monitor adoption rates and will implement aggressive marketing strategies for existing and new customers [33][34] Question: Progress on migrating customers to OCI - Migration to OCI is expected to be completed by the end of Q1 2026 [36][37] Question: Drivers of service revenue growth - Positive market acceptance and execution by retail teams contributed to the 8% growth in service revenue [43][44] Question: Opportunities with AI receptionist technology - The AI receptionist is expected to appeal to a majority of small and mid-sized customers, potentially increasing average revenue per account significantly [49][50] Question: Insights on Version 46 of the platform - Version 46 is expected to be available for previews in Q1 2026, enhancing user interaction with the platform [54][56] Question: M&A strategy and potential acquisitions - The company prefers to acquire technology that integrates seamlessly with its existing platform but remains open to other opportunities if compelling [66][67] Question: Product gross margin decline - Management expects product gross margins to improve and return to historical averages in the upcoming quarters [78][79]

Financial Data and Key Metrics Changes - ADTRAN reported revenue of $279.4 million for Q3 2025, representing a 23% year-over-year increase and a 5% sequential increase, finishing at the high end of guidance [12][13] - Non-GAAP gross margin improved to 42.1%, up both sequentially and year-over-year, driven by scale efficiencies and product mix [13] - Non-GAAP operating profit rose to $15.1 million, or 5.4% of revenue, exceeding the midpoint of the outlook, with a sequential increase of $7.1 million, or 89% [13][14] Business Line Data and Key Metrics Changes - Optical networking revenue grew 47% year-over-year and 15% sequentially, driven by strong momentum in Europe and new customer additions [7][13] - Access and aggregation revenue increased by 12% year-over-year, supported by ongoing fiber access investments among regional operators in the US and Europe [8][13] - Subscriber solutions revenue grew 12% year-over-year and 21% sequentially, with demand for residential and wholesale applications [8][13] Market Data and Key Metrics Changes - Non-U.S. revenue accounted for 57% of total revenue, while U.S. revenue represented 43% [13] - The company added 15 new optical customers and 14 new customers for fiber access and Ethernet aggregation platforms during the quarter [7][8] Company Strategy and Development Direction - The company is focused on leveraging financial performance as a driver of long-term value creation, with a disciplined approach to capital structure and operational efficiency [4][10] - ADTRAN is positioned to benefit from structural shifts in the industry towards core to edge computing and intelligent networks, with a differentiated portfolio and the Mosaic One operating platform [9][10] - The company aims to maintain gross margins in the 42%-43% range over the long term and is targeting operating margin expansion through disciplined cost control [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall market for the remainder of the year, despite typical seasonal factors affecting Q4 [4][15] - The company anticipates solid demand and execution to offset usual headwinds, expecting Q4 revenue between $275 million and $285 million [15] - Management highlighted the potential for increased orders related to BEAD spending in 2026, indicating a more active environment [38][39] Other Important Information - The company completed a $201 million financing transaction that lowered borrowing costs and improved liquidity [4][12] - ADTRAN is actively marketing its non-core assets, including the Huntsville campus, with multiple offers received [21][22] Q&A Session Summary Question: Timing changes in Access and Aggregation business - Management acknowledged a push-out in timing for shipments due to the financial calendars of major customers, but indicated no risk involved [20] Question: Update on real estate and marketing efforts - Management confirmed that both buildings are back on the market and receiving multiple offers [21][22] Question: Growth drivers for ADTRAN in a slow-growth telecom market - Management noted significant market share disruption in Europe, with ADTRAN being a key winner in that space [24] Question: Impact of Huawei displacement in Germany - Management indicated that while there hasn't been material rip and replace yet, it is expected to happen over time [25] Question: Trends in Optical domain - Management reported strong momentum in Optical, particularly due to new tier one customers in Europe [30] Question: Operating margin expansion expectations - Management expects operating margin expansion in 2026, with a focus on maintaining operating expenses [40] Question: Minority interest and shareholder redemptions - Management noted nominal activity in redemptions and expressed a desire for more proactive engagement with shareholders [44][48] Question: Dynamics of non-core asset business - Management confirmed that the old ADTRAN sync and timing business is included in the access and aggregation category and is currently being restructured [52][53]

Core Insights - The MSCI Emerging Markets Index has experienced a continuous rally for ten months, driven by an artificial intelligence boom and a weaker dollar, resulting in a 30% increase year-to-date [1][2] - Emerging-market stocks are outperforming US peers for the first time in eight years, leading to forecasts of a multi-year rally from money managers [4] Group 1: Market Performance - The MSCI Emerging Markets Index closed October with a 4% gain, despite a 0.7% drop on the last trading day of the month [1] - Emerging-market bonds also saw gains, with the Bloomberg EM Sovereign Total Return Index of dollar bonds achieving a seventh consecutive month of increases [5] Group 2: Catalysts for Growth - Strong performance in AI-focused Asian tech stocks and a weaker dollar have prompted diversification from US assets [2] - Targeted stimulus in China has positively impacted earnings estimates, fund flows, and overall market sentiment [2] Group 3: Sector Composition - Emerging-market equities are increasingly diversified beyond traditional sectors like banks and commodities, with significant representation from tech, consumer, and medical sectors [3] Group 4: Economic Outlook - The Federal Reserve's potential decision not to lower interest rates in December has created uncertainty, leading to modest profit-taking in select asset classes [4] - A trade truce between China and the US has contributed to a perceived easing of tariff frictions, benefiting risk assets [5][6]