UK broadband net additions in Q3 2008 fell sequentially, the first time this has happened in a third quarter. Q3 net adds almost halved year-on-year to 320,000
The consultation period for the second phase of Ofcom’s Second Public Service Broadcasting Review closes on 4th December 2008. The central issue before Ofcom is that the current PSB model is broken, lacking the flexibility to “adapt to audiences’ evolving needs”. The primary concern lies with the commercial sector, which is under increasing strain to deliver its PSB commitments due to structural changes in the television medium that have been compounded by the present economic crisis. This presentation sets out our views about the role of structural changes in restraining TV net advertising revenues (NAR) growth in recent years along with our latest TV forecasts to 2013. Whilst some of the current downward pressures on TV NAR may be expected to ease, a new structural change that threatens the commercial PSB sector is the growing chasm between BBC investment in its PSB services and the advertising revenues of ITV, Channel 4 and Five
Carphone Warehouse’s distribution side was very strong in revenue terms in the September quarter, with an underlying (ex-currency) growth of 11%
The company is right to be cautious about the Christmas trading environment, although we believe that it will continue to do well in relative terms at least, and even has a fighting chance of hitting the distribution revenue guidance made back in April
Fixed line revenue growth was hit by churn and spin down at AOL UK, and churn in the non-broadband base. Fixed line EBITDA grew encouragingly as cost savings from LLU kicked in, but overall financial performance was marred by the cost of free laptop and retention offers at AOL UK
Distribution connection numbers were strong (+9%), especially on contract (+21%), despite a reduction in store expansion and the consumer slowdown which is affecting other consumer electronics businesses
H3G Group’s H1 2008 results showed static revenue and EBITDA slipping back into negative territory, neither of which bode well for the company’s target of being EBIT positive next year
Carphone Warehouse had a solid quarter on the distribution side given the current environment, with 6-7% underlying organic retail growth and roughly stable like-for-like figures
This report explains Ofcom’s ongoing review of Openreach’s financial framework, why it is important, the myriad factors involved, our view on the likely outcome and the implications for BT and unbundlers, in particular Carphone Warehouse and BSkyB
After a protracted offer period, Scottish Media Group has finally sold its national commercial radio business ‘Virgin Radio’ to Bennett, Coleman & Company Limited for £53.2 million cash. The sale does not include the licence to continue using the brand name from the Virgin Group, so the station will be re-branded and re-launched by its new owner in autumn 2008. This report argues that, although the value of Virgin Radio’s main AM analogue platform is diminishing, the value of the accompanying FM licence in London could be significantly increased by the execution of a successful turnaround strategy. The London licence alone could reflect the price paid for the whole business, if the station’s rock music programming were to be made more relevant to consumers and advertisers in the capital
Carphone Warehouse had a solid quarter, and its expectation of a currency-aided 9-10% growth rate in 2008/2009 distribution revenue looks achievable, as does guidance of 4-5% growth in fixed line revenue, unless loss of telephony-only customers accelerates
H3G Group’s growth continued to slow in H2 2007, and it is now growing at just 6%, versus 10% 6 months ago, with falling ARPU combining with static subscriber net additions