UK broadband, telephony and pay TV trends Q1 2017: Profit warnings come in threes | Jun 2017

Sectors: 
Fixed Line
Internet
Media
Mobile
Telecoms
TV
UK Media
Companies: 
BT
Liberty Global
Sky
TalkTalk
Virgin Media

UK residential communications market revenue growth dipped 0.6ppts in Q1, from 3.3% in the previous quarter. This was mainly driven by ARPU weakness arising due to the timings of Sky and Virgin Media’s price rises, but weakness also stemmed from the sustained decline in broadband volume growth and continued new customer price competition

In competitive terms, BT and Sky suffered as a result of communicating price rises in the quarter, Virgin Media had a strong quarter if not quite as good as it was expecting, and TalkTalk manged to recover to positive retail broadband net adds at the expense of high marketing costs

BT, Liberty Global and TalkTalk issued profit warnings in the quarter, all of which were at least loosely related to increasing pressures in the consumer market. We expect these pressures – a slowing broadband market, an expanding Virgin Media, and a stabilising TalkTalk – to continue

Access UK broadband, telephony and pay TV trends Q1 2017: Profit warnings come in threes