Vodafone achieved its 2006/07 full year targets on revenue and profitability, with solid revenue growth (underlying about 2% in Europe) but dropping margins (by around 2pps in Europe)
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The performance of the international business remains solid
French altnet Neuf Cegetel is buying Club Internet from Deutsche Telekom for an estimated €500 million and will overtake its rival Free as the #2 on the DSL market, still way behind Orange
Growth in Q1 2007 for the aggregate non-Vodafone European mobile operations was 4.2%, a slight decline from 4.7% last quarter (Vodafone reports its results next week)
Revenue growth was weaker but EBITDA growth remained strong and capex fell, sending cash flow growth strongly positive
The new consumer data tariffs from Vodafone and Orange in the UK continue the trend towards dramatically lower data prices for high end users, although they are cunningly structured to involve more moderate increases for low end users
Virgin Media’s Q1 top line results were again mixed, with a growing number of customers leaving as competition intensifies, despite the rebrand to Virgin. But it could have been worse; most higher-spending customers are remaining
Mobile advertising has recently been talked up by both mobile operators and media companies, with some analysts estimating that it could be worth more than $11 billion by 2011, or over one third of the current internet advertising market
The internet is the UK’s fastest growing advertising medium, with spend rising 41% to £2.02 billion in 2006, and a further 30% rise expected for 2007. Three drivers underpin this growth: more intense use of the internet as broadband connections become standard, very strong growth in e-commerce, which is driving up paid-for search, and improving yields through rich-media formats. These factors will continue to propel growth of internet ad spend in the near future
Ofcom has reintroduced price cuts to the UK mobile call termination rates, cutting 2G call termination rates by between 9% and 19% over four years and introducing termination regulation for 3G calls that will cut rates by 45%