VodafoneThree's launch incorporates a number of swift and astute commercial decisions, which is particularly welcome given the challenging balancing act that the company needs to perform
The network upside will be felt quite quickly for Three customers primarily, with protection for Vodafone customers built in. Longer-term, the Government policy shift towards better coverage may require investment beyond the committed £11bn plan
We view some moves as helpful to prospects in the broadband market, others less so, and continue to have question marks about the attractiveness of this segment for VodafoneThree
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Germany suffered a sizeable EBITDA decline in the 2H of FY25, and guidance for European EBITDA next year implies another tough year in FY26 with an underlying 5% decline for Europe as a whole excluding 1&1.
Elsewhere, the UK had a very solid FY25 and is a good news story for the Group with the merger with Three in prospect, but the Rest of World’s contribution is likely to diminish from here.
Various one-offs will support the outlook for next year, but operational execution is at the core of Vodafone’s raison d’être. Beyond some encouraging KPIs, investors continue to await meaningful evidence of such.
Advertising has outgrown the UK's wider economy by 20 percentage points since 2000 thanks to online and advertisers in export markets, especially China, targeting sales in the import-dependent UK market.
If current trends held to 2030, advertising would reach 1.7% of UK GDP, over 50% higher than 2019—we believe this to be the least likely scenario as the UK already sustains higher ad intensity than major markets.
The next recession could be the moment when online ads growth corrects and then reverts to low single-digit growth in line with the economy. A 'soft landing' is also possible, while a surprise outperformance would require more drastic structural shifts.
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The slowdown in telecoms traffic volume growth post-pandemic has persisted for far longer than a simple hangover effect would imply, and has spread from fixed broadband to mobile in many markets
The eventual emergence of the metaverse and/or AI-generated traffic may mitigate this trend, but it is hard to see growth ever returning to a sustained 30%+ per annum level, with around 10-15% likely to prove the new normal
While far from disastrous for telcos, it does have important implications, such as the need to structure pricing more carefully, focus on network quality over capacity, and be more wary of the threat (or opportunity) from MVNOs, FWA and satellite
The erosion of the website’s centrality, and the rise of creators and influencers generates multiple challenges for media –people’s choices have grown enormously. This report highlights consumer behaviour: what people trust and value.
Through a series of case studies we demonstrate people’s needs are resilient: helpful and convenient services with personality that can be trusted, all enhanced by strong community.
Media brands continue to play a critical and trusted role for people to navigate marketplaces, interests and their work life. The role of product –and by extension, the leadership and structure of product development –has grown in importance.
Vodafone has signalled a tougher outlook in Germany primarily due to a worsening competitive backdrop for mobile.
Although Vodafone has reiterated its guidance for the full year, this now relies heavily on developing countries, with currency risk emerging for FY26.
Investors are likely to be sceptical of the company’s “ambition” to grow in Germany next year, with this seemingly predicated on an improving competitive environment. Nonetheless, the company can point to some early fruits of its turnaround endeavours there, and next year’s trends should be better than the current ones regardless.
Vodafone’s Q2 performance was in line with the company’s guidance on almost every metric and was always going to be a tough one given the hit from TV losses in Germany and the annualisation of price increases there
The share price reaction (-6%) is likely a reflection of fears around Vodafone’s ability to improve underlying operational performance in Germany. Whilst this remains a valid concern, there is nothing in these results to amplify our worries on the issue
Escalating competitive pressure in German mobile is, however, a threat to the company’s growth outlook, and Vodafone’s promise to be “disciplined” in its approach to it may turn out to be too conservative a strategy
Sony PlayStation’s next CEO will have hard decisions to make: compete against a resurgent multiplatform Microsoft, or retreat and defend an increasingly rickety PlayStation console model.
New gaming hardware will have an outsize influence in the year ahead, giving gamers unprecedented choice, starting with XR headsets and continuing to a likely new Nintendo Switch.
YouTube’s foray into browser-based games will be the service to watch in 2024. If successful, streaming services, including Netflix, will be on track to become heavyweight game platforms.
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Online retail is a prime arena for AI implementation, with a high degree of tech involvement and proximity to the point of sale
Generative AI’s near-term prospects are inflated by the hype cycle; instead, improvements to product discovery and logistics will be the next frontiers for growth and AI-driven efficiency
Retailers risk their reputations as they jostle for early mover advantage: larger players Amazon and Shopify through major investments, and SMEs with specialised data and licensing
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As younger viewers continue to migrate from linear TV to online video-sharing platforms, engaging with the audiences on these platforms is no longer simply an opportunity, but a necessity.
However, this ecosystem offers broadcasters limited monetisation opportunities, reduced audience data and worse attribution than the more lucrative broadcast TV model.
In this fragmented media landscape, broadcasters must maximise their digital reach and exploit incremental revenue opportunities, although linear channels and owned-and-operated platforms will continue to provide the bulk of revenues.
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