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European mobile in Q2 2016: Down but resilient - Venture Insights

Report Overview

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European mobile in Q2 2016: Down but resilient

PublisherVenture Insights.
Publish Date September 27, 2016
Sector Media, Mobile, Mobile and Wireless Technology, Non-UK Telecoms, Telecom.
Company Virgin Media, vodafone.

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European mobile service revenue growth worsened slightly in Q2, dropping to -1.2% after three consecutive quarters at -0.8%. Southern Europe significantly outperformed the North, reversing the regional trend of recent years.

EU roaming rate cuts and the increase in SIM-only subscriptions were the two main negative, albeit temporary, factors with the former particularly impacting northern European operators with heavy roaming exposure and the latter more varied in its impact across the EU5.

Mobile service revenue growth was thus quite robust given these factors, helped by price firming in a number of markets. Looking forward, while the negative factors are likely to continue in the short-term they will drop out in two years in the case of roaming cuts, and SIM-only, whose impact is mostly profit-neutral to operators, will also reach an equilibrium in due course, and the market’s overall resilience is encouraging.