Operators’ focus on EBITDA margins may be damaging to their business divisions’ long-term interests

Telecoms operators’ focus on EBITDA margins may be working against the long-term interests of their B2B divisions. Operators have long concentrated on EBITDA and EBITDA margins, and this shows no sign of abating. In 1Q 2026 reporting, operators mentioned EBITDA twice as often as any other profit metric (the next most common mention was free cashflow).

In some cases, operators are rejecting opportunities that dilute EBITDA margins, even if these opportunities are neutral or even positive on other measures of profitability, and even if these opportunities provide customers with services that they want and are willing to pay for.

By solely focusing on EBITDA margins, operators risk underinvestment in growth areas such as IT services and weakening their long-term competitive position in B2B markets.

This article looks at B2B divisions, but the same logic applies to other opportunities an operator may consider pursuing. Teams pushing different opportunities need to persuade management and investors to reduce the focus on EBITDA margins and explore other measures.