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UK broadband, telephony and pay TV trends Q4 2013: Volume and price driven growth continues - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q4 2013: Volume and price driven growth continues

PublisherEnders Analysis.
Publish Date March 3, 2014
Sector Fixed Line (Internet and Voice), Sports.
Company BT, Sky Group, TalkTalk, Virgin Media.

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The UK residential communications sector maintained strong revenue growth of 5% in Q4 on a reported basis, or 4% underlying, bolstered by strong volumes and solid pricing, with recent price increase implementations supporting the latter going forward.

It is still hard to see a very significant competitive impact from BT Sport, with BT’s broadband net adds up by only 20k-30k on a year earlier, but the impact on costs is very clear, with increased sports rights costs, increased marketing costs and pay TV box/device subsidies driving up the cost base of all operators.

Looking forward, in the short term market volumes are likely to be suppressed by recent bad weather lengthening provisioning times, and the detailed timings of price increases will suppress ARPU growth. In the medium term the outlook is much stronger, although the prospect of increased competitive activity around the next Premier League rights auction still casts a shadow.