Vodafone appears to be over the worst of effects in Germany’s TV law change.
The British telco reported that its German business has declined by 3.2% in Q1, following a 6% decline in Q4. The TV customer base increased by 28,000 following a loss of 81,000 in the previous quarter following Vodafone’s decision to bundle basic TV services with broadband. However, this was was partially offset by the ongoing decline in demand for standalone linear TV services.
The law change gave tenants in Multiple Dwelling Units (MDUs) the right to choose their own TV and broadband providers.
UK service revenue increased by 0.9% in Q1 thanks to growth in Consumer and Wholesale segments.
Group Chief Executive Margherita Della Valle said there was encourage progress that was in line with expectations “We have had a good start to the year with strong revenue and EBITDA growth. Germany has started its improvement trajectory and our emerging markets are delivering strong broad-based growth. In the UK, we have completed the merger with Three and are moving quickly to combine our networks to benefit customers.”
Group total revenue increased by 3.9% to €9.4 billion in Q1 with strong service revenue growth.
