Poor ratings exacerbate commercial radio woes

20 July 2010

The latest RAJAR radio data (Q2 2006) delivered further bad news to the commercial radio sector, whose audience share has fallen year-on-year in all but four quarters of the last eight years to the benefit of the BBC. Commercial stations’ share of listening has dropped from a peak of 51% in Q2 1998 to below 43% this year, a level last witnessed in 1993. In the intervening thirteen years, commercial radio has launched one national and 124 local analogue stations, as well as 163 digital stations, although this unprecedented growth in supply has apparently failed to stimulate any long-term gains in share.

Market leaders Orange and Free increased their DSL retail market shares, while (newly IPOed) Neuf just managed to hold its retail market share (including AOL FR), while that of smaller ISPs (as a group) declined

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Revenues revert: Pricing conundrum in UK telecoms

9 May 2024

In-contract price increases have been the worst of all worlds—reputationally damaging for telecoms operators but contributing (temporary) revenue growth of just half the rate of inflation. We expect the revenue boost from in-contract price increases of 5% last year to become a 2% drag from Q2 2024.

Cost inflation is, however, cumulative with an acceleration in the gulf between costs and revenues forecast from here. We expect muted financial guidance for 2024/25 from BT Consumer and Vodafone UK over the coming weeks.

Rising new-customer pricing is a necessity if margins are not to be significantly squeezed, but competitive intensity and scale economics continue to thwart such efforts, with no real resolution in sight.

Access report

ITV Q1 2024 results: Advertising looking up as Studios fights headwinds

9 May 2024

A drop in Studios' revenue—attributed to phasing of content deliveries and strikes— saw ITV's external revenue down 6% to £727 million in Q1. An improvement in advertising could not offset this drop but H2 will be better for production and see Studios flat for FY 2024

After big launch momentum, the growth of ITVX appears to be slowing, while the service's release strategy continues to evolve

ITV’s total advertising revenue (TAR) was up 3% in Q1 to £432 million (2023: £419 million). H1 is forecast to be up 8%, with Q2 up 12%, buoyed by the Euros which start in June

Access report

Virgin Media O2: Tough start to a tough year

8 May 2024

VMO2 had a tough start to a tough year in Q1, with revenue growth dipping to -4% and EBITDA to -2%, and both fixed subscriber and contract mobile subscriber net adds negative.

Trends are unlikely to improve in the short term, with the fixed side suffering from full fibre overbuild and the mobile side struggling to replace its formerly unique Custom Plan offers.

There are however longer term upsides on fixed in particular, with network and service upgrades bringing sub-brand and wholesaling opportunities, and the company is striving to get the magic back on mobile.

Access report