EE reported solid contract net adds, but weakening contract ARPU, which drove mobile service revenue growth down to -2.5%

However, EBITDA growth was spectacular at 15% in H2, suggesting that much of the subscriber growth is in low revenue high margin segments such as SIM-only and B2B, as well as cost control being strong

EE’s new parent BT is likely to be able to drive further progress in these areas, and the outlook is robust even if quad play demand remains low in the consumer market

Vodafone Europe’s service revenue growth continued its trend of gradual improvement, helped by solid contract net adds and sustained high data traffic growth, and is now almost stable

Project Spring network metrics performed strongly in the quarter, and there is some evidence of this translating into better operating performance in Italy, which enjoyed positive mobile service revenue growth for the first time since 2010

Problems remain for the company in its other key mobile markets however, all of which remain in decline. Although these issues may prove temporary, and Project Spring may yet offer them a boost, further pressure is on the horizon due to competitor consolidation and associated regulatory remedies