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UK broadband, telephony and pay TV trends Q2 2014: BT leads the way - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q2 2014: BT leads the way

PublisherEnders Analysis.
Publish Date August 19, 2014
Sector Fixed Line (Internet and Voice), Sports.
Company BT, EE, Sky Group, TalkTalk, Virgin Media.

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Market revenue growth in the UK residential communications sector continued to be robust in Q2 2014 at 5.4%, a slight increase on the previous quarter, with continued volume growth and firm pricing countering weak call volumes and the negative impact of a VAT legislation change hitting Virgin Media and TalkTalk.

BT was the fastest growing out of the big four’ in revenue terms in Q2 even after the direct revenue impact of BT Sport is excluded, a remarkable turnaround after being in last place a year ago, driven by both volume and ARPU growth continuing to accelerate, with fibre helping both.

Since the end of Q2, promotional activity has already intensified, particularly from BT and Sky around the start of the new football season, and churn is likely to be under more pressure at all of the operators, although the disruption is likely to be less severe than that experienced around the launch of BT Sport last year, and we expect all of the major players to continue to grow in net terms.