Currys' Strategic Pivot: Leveraging Telecom Growth Amid Sector Valuation Shifts

The UK telecom sector is undergoing a transformative phase in 2025, driven by 5G adoption, fixed-mobile convergence, and rural connectivity initiatives. For Currys PLC, a traditional electronics retailer, the rise of iD Mobile-a mobile virtual network operator (MVNO) under its umbrella-has redefined its market narrative. With iD Mobile subscribers surging to 2.2 million in the 2024/25 financial year (a 26% year-on-year increase), according to Currys Full Year Results 2024/25, Currys is capitalizing on the sector's shift toward recurring revenue models. This strategic pivot positions the company at the intersection of retail and telecom, challenging traditional sector boundaries.

Telecom Sector Growth: A Tailwind for Currys

The UK telecom market is projected to grow at a 3.41% compound annual growth rate (CAGR) from 2025 to 2030, reaching USD 36.12 billion by 2030, according to a Mordor Intelligence analysis. Key drivers include 5G standalone (SA) rollouts, which are expected to boost average revenue per user (ARPU) in urban centers like London and Manchester by 1.5% over the medium term. Fixed-mobile convergence bundles are also gaining traction, reducing churn and enhancing customer lifetime value, particularly in suburban markets, per the same analysis. Meanwhile, the Shared Rural Network (SRN) initiative aims to expand 4G coverage in rural areas, contributing 0.8% to the sector's long-term CAGR, per the same analysis.

Currys' iD Mobile has outpaced these averages, achieving a 25% annual subscriber growth rate since 2023, according to a Currys press release. By focusing on affordability and feature-rich plans, iD Mobile has captured a significant share of the value-driven segment, a strategy that aligns with the sector's broader trend of diversifying revenue streams. As of Q2 2025, the UK telecom market reported an average monthly retail revenue per subscriber of £13.68, according to Ofcom data, underscoring the potential for MVNOs like iD to thrive by balancing low prices with competitive service offerings.

Valuation Multiples: A Mixed Picture

The UK telecom sector's valuation multiples in Q3 2025 reflect a median TEV/EBITDA of 15.44x and a median TEV/Revenue of 2.93x, according to a PCE analysis. This indicates investor confidence in scalable, recurring-revenue platforms. However, Currys' specific valuation metrics remain opaque. While the company's full-year results for 2024/25 highlight robust iD Mobile growth, its broader financials-including EBITDA or P/E ratios-have not been disclosed in publicly available data, according to a Clfi analysis. This lack of transparency complicates direct comparisons with sector averages.

The sector's average TEV/EBITDA multiple of 5.3x in Q3 2025, according to the Clfi analysis, suggests a moderate valuation environment, influenced by higher financing costs and smaller transaction sizes. For Currys, the absence of clear multiples raises questions about whether its telecom ambitions are fully reflected in its market valuation. Given iD Mobile's subscriber growth and the sector's tailwinds, investors may need to reassess Currys' potential as a hybrid retail-telecom player.

Strategic Implications and Risks

Currys' success hinges on its ability to scale iD Mobile while maintaining profitability. The Three-Vodafone merger, which has stabilized the UK telecom landscape, could further benefit Currys by enabling deeper network sharing and cost efficiencies, according to a FastMode analysis. However, challenges persist, including slowing mobile data traffic growth (18% in 2024, down from 25% previously), according to the FastMode analysis, and the need for innovative monetization strategies beyond consumer tariffs.

For investors, the key question is whether Currys can leverage its retail ecosystem to cross-sell telecom services, thereby enhancing customer retention and average spending. The company's focus on affordability may also face pressure as 5G SA features and enterprise applications drive premium pricing in certain segments, according to the FastMode analysis.

Conclusion

Currys' evolving market narrative reflects a bold repositioning in the UK telecom sector. While valuation data gaps persist, the company's iD Mobile growth and alignment with sector trends suggest untapped potential. As the telecom industry shifts toward recurring revenue and digital convergence, Currys' hybrid model could offer a compelling value proposition-provided it can navigate regulatory, competitive, and financial challenges.