October 7, 2020 Focus Report, ReportsWith a lack of live sport, the lockdown weighed on incumbent pay-TV platforms’ subscriptions. SVOD providers leveraged their cheap positioning—Netflix and Amazon Prime Video now rank above other subscription services in Europe, and Disney+ had a successful launch Incumbents—Sky, Canal+, Movistar+—all pursue a twin-track strategy. They are positioning themselves as gatekeepers thanks to service bundles, while redirecting resources away from […]
September 15, 2020 Market Outlook, ReportsService revenue growth in the major European markets worsened by 3.5ppts this quarter, as a loss of roaming, prepay, and business revenues hit almost all operators. The UK was hardest hit as prepay and out-of-bundle usage was offloaded to Wif-Fi, and there was an accounting drag as a consequence of the ending of the relationship between O2 and Carphone Warehouse. Conversely, performance in the Italian market was almost flat as prepay usage was up and there was a degree of reprieve from competitive pressures from Iliad. Elsewhere, the French market was hard hit by the loss of inter-continental roaming as far back as February as China began to shut down but other fundamentals appear to be robust. In Germany, O2’s revenue trend was hardest hit but it maintained its strong net adds momentum. While the lockdown provided a break from ‘a very intense promotional environment’ in Spain, that intensity resumed as soon as lockdown lifted with particularly compelling converged bundle offers from Vodafone and Yoigo.Service revenue growth in the major European markets worsened by 3.5ppts this quarter, as a loss of roaming, prepay, and business revenues hit almost all operat [...]
January 9, 2020 Market Outlook, ReportsEuropean mobile revenues remain decidedly in decline this quarter at -2% – a slight worsening since Q2 as the full force of cuts to intra EU calls hits. There are signs that dual brand strategies may be reaching their useful limit as erstwhile premium customers shift to value. There is scope for some trends to slowly improve from here, although end of contract notifications will impact all markets before the end of 2020, with the UK first off the blocks in Q1.European mobile revenues remain decidedly in decline this quarter at -2% – a slight worsening since Q2 as the full force of cuts [...]
November 26, 2019 Focus Report, Reports
Vodafone continues to strike a very shareholder-friendly focus and tone but its operating performance remains decidedly muted, with revenue growth up just a touch but EBITDA growth halved. Vodafone’s drive for convergence is still costing it dearly. German mobile ARPU is down 7% and Liberty Global’s assets disappointed on their first consolidation with cashflow enhancement less than half that expected. Apart from its ill-advised convergence strategy, Vodafone is making many sensible moves and there are indications that its unlimited plans are gaining traction. With leverage tight, pressure is mounting for demonstrable improvements in the financials some time very soon.
Vodafone continues to strike a very shareholder-friendly focus and tone but its operating performance remains decidedly muted, with [...]