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Vodafone Europe’s revenue growth bounced back from a weak previous quarter, but its top 4 markets combined were broadly flat in underlying terms.
There are nonetheless promising underlying signs, including reduced churn, (slowly) improving subscriber growth and steady NPS Vodafone has launched all-you-can-eat social/music/video bundles under the ‘Vodafone Pass’ moniker in several markets, which appear both popular and ARPU-enhancing, and being early to market with such an innovation is laudable Talk Talk sustained positive broadband net adds in the June quarter, adding 20k to its base, largely driven by reduced churn, which was largely driven by re-contracting a large proportion of existing customers onto its new cheaper bundles Unfortunately, this had a negative effect on revenue growth, with Group revenue growth (ex-carrier) dropping to -3.2%, as the new cheaper bundle adoption diluted ARPU, but the company remains confident that revenue growth will turn positive for the full financial year as the ARPU dilution effect annualises out European mobile service revenue growth remained stuck at zero in Q1, with a heightened impact from the mobile termination rate cuts in Germany and price promotional activity in southern Europe mitigating improving markets in the UK and France ‘More-for-more’ price rises continued both during the quarter and after, and appear to be more widespread than the 2016 increases.
The rate of improvement has started to slow, but pricing remains solid and data traffic continues to grow healthily EE’s performance was helped by robust subscriber growth but mainly driven by its very strong ARPU growth, which is in turn driven by ‘more-for-more’ pricing and a service/content tiered pricing model.
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Revenue growth accelerated to 28.5% on the strength of Tinder and the new Tinder Gold product, as the long-term potential of the popular swipe-based dating app continues to take shape." data-reactid="11" shares were flying higher again this week as the company posted another impressive earnings report.
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 BT had a reasonable quarter in its consumer broadband business given market pressures, and a very strong one at EE with continued growth acceleration.
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