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September 15, 2020European mobile in Q2 2020: Sounding a more cautious note
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. -
September 8, 2020Surging online retail in the UK- Record growth during lockdown
Market Outlook, ReportsThe reopening of the high street from 15 June came as welcome news for businesses which had seen sales decimated since lockdown was enforced on 28 March. However, even as restrictions eased, shoppers stayed away, with high street footfall across the UK down by 48% in July year-on-year -
August 25, 2020UK mobile market in Q2 2020 – Recovery interrupted
Market Outlook, ReportsThe sector was hit harder than expected by COVID-19 with service revenues declining by 7% overall vs a decline of just 1.6% in the previous quarter. Many telecoms operators across Europe have become more negative on the near-term outlook than they were a couple of months ago with full year guidance now downgraded by almost all players -
August 24, 2020UK broadband, telephony and pay TV trends Q2 2020 – Things [...]
Market Outlook, ReportsConsumer broadband, telephony and pay TV market revenue growth plummeted to -6% in Q2 (from -2% in Q1), with all of the ‘big 4’ operators’ revenue growth taking a substantial hit. The reduction in premium sports channel revenue was by far the largest factor, with there being some other lockdown-related negative factors, such as the opportunity cost effect of extra services offered for free by the operators to help their customers during the crisis -
August 21, 2020Virgin Media UK – Indeterminately boosted
Flash Report, ReportsVirgin Media had its strongest subscriber performance for years in Q2, with its (ex-Project Lightning) existing base footprint showing positive growth to add to the subscribers gained on its Project Lightning network extension. This was partly due to temporary factors, with both Openreach and Sky not able to do in-home installations for part of the quarter, but the company has reported some sustained momentum, with the crisis boosting demand for higher speed broadband, and has decided not to implement its usual annual price increase in H2 to avoid the usual accompanying churn and customer dissatisfaction, instead choosing to prioritise subscriber growth to compensate for the ARPU shortfall. -
August 12, 2020O2 UK: COVID and loss of Carphone bite
Flash Report, ReportsAlong with the rest of the mobile market, O2’s results were harder-hit by COVID than expected, with service and total revenues down by 9% and 4% respectively -
August 11, 2020Sky UK Q2 2020 results – Emerging from the worst?
Flash Report, ReportsSport is back, but its recent hiatus amid the COVID-19 crisis hit Sky hard, with Q2 revenue plunging 12.9% year-on-year. EBITDA remains flat for now, with sports rights cost absorption postponed but not cancelled -
July 29, 2020TalkTalk UK: Post-lockdown challenges and opportunities
Flash Report, ReportsTalkTalk started its new financial year with revenue growth declining to -8% in Q1, although this is partly lockdown-related, and costs have also declined as churn plummeted -
July 22, 2020UK Betting & gaming advertising – Inadequate solution [...]
Focus Report, ReportsThe Betting and Gaming Council (BGC) which represents 90% of the UK’s betting and gaming industry (but not the National Lottery/other lotteries) announced its withdrawal of all TV and radio advertising for casino, slots and bingo during lockdown -
July 20, 2020UK TV broadcasters – Silver linings from COVID-19
Focus Report, ReportsAdmissions and box office revenues in 2020 will be the lowest in over three decades. The pandemic forced the closure of theatres, putting pressure on cinema to a degree unlike ever before -
July 15, 2020UK Huawei ban – Counting the cost
Flash Report, ReportsPress reports suggest that the restrictions on Huawei equipment may morph into a full ban, with new installations stopping soon and existing equipment to be removed by 2029 -
July 14, 2020Cinema’s post-pandemic future
Focus Report, ReportsAdmissions and box office revenues in 2020 will be the lowest in over three decades. The pandemic forced the closure of theatres, putting pressure on cinema to a degree unlike ever before -
July 13, 2020Canal+: Time to reclaim its ‘national champion’ mojo
Flash Report, ReportsThe pay-TV platform’s revenue has almost stabilised in France, while positioning has shifted to that of an aggregator—thanks to deals with Netflix, Disney+ and BeIN Sports -
July 6, 2020Telecoms and pay TV – Opportunities beyond lockdown
Focus Report, ReportsThe Disney Channel, Disney XD and Disney Junior will cease to be broadcast in the UK. Carriage negotiations with the major platforms have clearly been going on for some time, with the March agreement for Sky Q to carry the new SVOD service Disney+ completed without any reference to the linear channels. -
July 2, 2020UK broadband, telephony and pay TV trends Q1 2020 – No foot [...]
Market Outlook, ReportsMarket revenue growth plummeted to -2% in Q1 2020, with a lack of premium sports pay TV revenue the biggest factor -
June 29, 2020Disney kids’ channels – Ceasing operation in the UK
Flash Report, ReportsThe Disney Channel, Disney XD and Disney Junior will cease to be broadcast in the UK. Carriage negotiations with the major platforms have clearly been going on for some time, with the March agreement for Sky Q to carry the new SVOD service Disney+ completed without any reference to the linear channels. -
June 24, 2020European football – An opportunity to reset
Focus Report, ReportsThe COVID-19 crisis is compounding the already grim revenue prospects for upcoming football rights sales in continental Europe -
June 22, 2020Online consumer reviews – Platforms reach for the stars
Focus Report, ReportsOnline reviews are a vital input for consumer decision-making. However, reviews are easy to manipulate, and widespread fraud is undermining credibility and raising the issue of consumer protection -
June 19, 2020TalkTalk UK – Cost savings drive earnings in a challenging [...]
Focus Report, ReportsTalkTalk grew EBITDA by 10% in 2019/20, an impressive cost cutting driven result, with revenue and gross margin falling as the company struggles with the move to high speed -
June 17, 2020UK pandemic economy – The uncertain road ahead
Focus Report, ReportsIn April, the first full month of lockdown, UK’s GDP fell by 20.4% month-on-month, the steepest decline on record, with further reduction expected in May. On 15 June, some non-essential premises re-open, but activity for the rest of the year will be depressed by social distancing—the UK’s recession in 2020 is certain to be the steepest on recordSector UK. -
November 18, 2019Free video! Apple TV+, Disney+, HBO Max and Peacock in a rush for [...]
Focus Report, ReportsNew SVOD entrants are prioritising reach over revenue in the US with extensive ‘free’ offers, including Apple TV+ (to hardware buyers), Disney+ (to Verizon customers), HBO Max (to HBO subscribers) and Comcast’s Peacock (to basic cable homes). This is the latest development in an unfolding global story of partnerships, continuing on from multiple Netflix and Amazon distribution deals with platforms, bringing benefits to both parties. In Europe, Sky faces price pressure, but it has secured its HBO partnership and can now talk to Disney from a position of strength. -
November 12, 2019UK’s TI Media goes back to the Future
Focus Report, ReportsSpecialist publisher Future has offered £140m for generalist TI Media’s 41 brands, which will give Future 220 global brands upon expected completion in Spring 2020. The acquisition, which includes wholesaler Marketforce, is contingent upon shareholder and CMA approval. Future is the darling of publisher stocks, pursuing an energetic growth and scale strategy, and diversifying revenues through digital and experience innovation. How Future’s culture of experimentation and optimisation will work with TI Media’s more general portfolio is an open question. Only time will tell if the overall portfolio balance will work. -
November 11, 2019
UK’s BT: Bumps on the road to recovery
Focus Report, ReportsBT suffered a weak Q2 with revenue and (particularly) EBITDA declines accelerating, but this was mainly down to timing (particularly at Openreach, which will likely recover in Q3), with the company confident in maintaining full year expectations. BT’s fixed broadband business enjoyed some recovery as the pricing environment improves, but will suffer another price timing bump next quarter, and its mobile business is suffering from a tough market environment that is unlikely to improve in the short term. The company is busy re-branding, re-positioning and transforming, but the outlook for football rights costs and fibre roll-out regulation will dominate in the short term, and further bumps (such as the Virgin MVNO contract loss) may emerge. -
April 22, 2016
Brexit risks for the creative industries
ReportsA post-Brexit recession will cause a hyper-cyclical decline in the advertising revenues of broadcasters and publishers. The Vote Leave idea of the UK joining a free trade area for goods with the EU would sever UK access to the Single Market for services, damaging the export-reliant audiovisual group, among many other sectors of strength. Made-in-the-UK IT, software and computer consultancy services will lose eligibility for government procurement tenders once the UK is an outsider to the EU.
