MEF MINUTE Quarterly Issue 1

MEF DATA
Q1 2021 MEF BUSINESS CONFIDENCE INDEX:
SENTIMENT IS HIGH BUT WINTER IS COMING…
The results from the latest of MEF’s
new quarterly check on industry
expectations for revenue – the
Business Confidence Index (BCI) –
reveal just how the mobile ecosystem
is performing during the pandemic:
key mobile sectors are expecting
sustained growth during Q1 2021, even
after a strong Q4 2020.
However, a second wave of COVID19
has hit most of the Northern
Hemisphere,and there we see a
softening of the growth expectations
driven by North America and Europe.
MEF has collected the views of 211
professionals from across the mobile
arena globally for this update.
• The BCI decreases quarter on
quarter: whilst the second lockdown
appears to have impacted
optimism, revenue predictions for
Q1 2021 remain rosy with growth in
the sights of most
• 53% of companies working in
mobile anticipate an increase in
revenues for Q1 2021, a 4 percent
reduction on Q4 2020). 23% think
revenues will be stable (a 4 percent
increase).
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• 24% expect a reduction, just like
in Q4, but of those, 11% think it
will be a larger reduction,
eliminating more than 10% of
revenues – a 1 percent increase
over Q4. Again, there are minor
signs of worsening sentiment.
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Global optimism in the mobile economy
lingers
Confidence in Q1 revenue growth is high. Key
markets across the mobile ecosystem are
showing resilience or growth as they
underpin the digital transformation
initiatives helping companies and
consumers adapt during the pandemic: e-
commerce, digital content, delivery services,
electronic payments and online banking are
today all powered by mobile.
However, the sentiment of growth is now
more muted than it was in the last six
months. MEF performed a spot survey in
June 2020 looking at growth expectations
for Q3, with 56% answering positively; three
months later it had edged up marginally
higher to 57% for Q4. The number of
companies expecting revenue growth for
the next three months is now lower – 53%
of respondents. Of these companies most
are either expecting strong growth (more
than 10%), 24% of all companies predict
good growth (from 2% to 9%) quarter on
quarter.
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MOBILE ECOSYSTEM FORUM
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