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UK broadband, telephony and pay TV trends Q2 2017:Dead cat bounce? - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q2 2017:Dead cat bounce?

PublisherEnders Analysis.
Publish Date September 1, 2017
Sector Fixed Line (Internet and Voice), Media, Telecom, UK Media.
Company BT, Liberty Global, SKY, TalkTalk, Virgin Media.

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UK residential communications market revenue growth bounced up to 3.6% in Q2, a full 1.4ppt improvement on the previous quarter and reversing the downwards trend of the previous two quarters. However, this was entirely driven by price rises at BT and Sky, with the ongoing market volume growth decline continuing at pace.

In competitive terms, TalkTalk was the only operator able to improve its broadband net adds on a year earlier, and Virgin Media was solid with only a modest decline, leaving BT and Sky shouldering the worst of the slowdown, albeit with neither company doing particularly poorly given the market context.

New customer pricing remains tight, with Virgin Media in particular becoming more competitive. Looking forward, we expect volumes to continue to slow, and for the pricing boost enjoyed in Q2 to largely drop out next quarter, leading to a renewed revenue growth slowdown.