UK broadband, telephony and pay TV trends Q1 2017: Profit warnings come in threes

Report Overview

UK broadband, telephony and pay TV trends Q1 2017: Profit warnings come in threes

Already a Subscriber? Login here to view Full Report

UK broadband, telephony and pay TV trends Q1 2017: Profit warnings come in threes
UK residential communications market revenue growth dipped modestly to 2.7% in Q1, from 3.3% in the previous quarter. This was mainly driven by ARPU weakness arising due to the timings of Sky and Virgin Media’s price rises, but weakness also stemmed from the sustained decline in broadband volume growth and continued new customer price competition
Looking forward, the implementation of an overlapping price increase from BT, as well as Sky’s price increases coming into full effect, should boost market revenues by around 1ppt in Q2 2017, but this will drop away again by Q3. The churn fallout from the communication of these price increases should also dissipate in Q2, benefiting BT and Sky competitively, and making it challenging for TalkTalk to repeat the feat of recovering to positive retail broadband net adds