Vodafone KPIs - strategic issues
Market revenue growth slowed to under 1% in Q4, driven by consumers economising in tough times through re-contracting and dropping add-ons.
Early 2023 is likely to be worse, with growth likely to turn negative again in Q1, again driven by ARPU with volumes more robust.
April price increases will give at least a temporary boost, but need to be managed very sensitively to avoid reputational damage and churn.
VMO2 and CityFibre merger talks: A tough sell20 March 2023
VMO2 and CityFibre are reportedly holding merger talks, which would bring together by far the two largest fibre builders competing with Openreach.
On a conventional altnet acquisition assessment, CityFibre is an attractive target given its scale, but a very expensive one at a full price given the degree of overlap.
The acquisition might still be attractive given the opportunity to take out a wholesale competitor but, for this same reason, regulatory clearance would be very tough.
ITV FY 2022 results: ITVX underway and growing7 March 2023
ITV’s external revenues increased 8% in 2022, driven by a big boost from Studios (+19%, £2.01 billion) with COVID overhang now appearing to be a thing of the past. Total advertising revenue (TAR) was down just 1% on last year’s record highs
ITVX had a successful launch, leveraging big audiences for the World Cup to drive awareness and use of the service. We will have to wait and see what effect ITV’s aggressive new content windowing strategy will have on linear viewing
Guidance is that Q1 2023 TAR will be down 11%, with April down between 10% and 15%. TV advertising should recover later in the year, but we are forecasting that the total market will be marginally down