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UK broadband, telephony and pay TV trends Q3 2015 - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q3 2015

PublisherEnders Analysis.
Publish Date November 30, 2015
Sector Fixed Line (Internet and Voice), Telecom.
Company BT, SKY, TalkTalk, Virgin Media.

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UK residential communications revenue growth bounced up in Q3 as we had predicted, on the back of continuing solid volume growth and improved ARPU growth driven by a series of price increases impacting in the quarter.

The overall revenue growth of 6% was supported by some one-off factors, such as overlapping price increases and the launch of BT Sport Europe, but we believe that growth at this level will be sustained for the next two quarters at least.

Looking forward, the impact of TalkTalk’s cyber-attack is uncertain in the detail, but it will clearly slow TalkTalk, benefit some of the others and may temporarily impact market volumes. Another area of competitive uncertainty is the impact of Virgin Media’s network extension as it gathers momentum into 2016, with all of the others likely to lose significant share in Virgin’s expanded areas.