About this weblog

What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Wednesday, May 31, 2017

Deutsche Telekom Pulls Away from Peers



In 2016, the revenue gap between Deutsche Telekom and Europe's other leading telcos - Vodafone, Telefónica, Orange and Telecom Italia - widened significantly. Thanks to the performance of T-Mobile US, Deutsche Telekom's revenues climbed above 70 billion euros, while Vodafone, Telefónica and Telecom Italia saw their top line shrink slightly.

However, on other financial metrics, such as return on capital employed (ROCE) and net profit, Deutsche Telekom still trails behind some of its peers. And Vodafone's operations are generating a similar amount of cash to those of Deutsche Telekom, despite the revenue gap.

In 2016, the average ROCE among the big five telcos was 6%, an uptick from 5% in 2015, but down from almost 10% in 2010.

Pringle Media has just published a report tracking and comparing the key financial metrics of these five major telcos over the past seven years. 

The Kindle version of the report is available here and the iPad version is here.

Google Assistant Leads on General Knowledge

Infographic: How Smart Are Source Statista

For more on Amazon Alexa and how it is trying to beat Google and Apple in the battle for the smart home, please see my report for STL Partners.

Tuesday, May 16, 2017

Vodafone Suffers Slowdown



Vodafone reported 1.5% year-on-year growth in service revenue on an organic basis for the quarter ending March 31, 2017. That was slower growth than in the preceding four quarters and Vodafone warned that European roaming regulation will curb future growth. The results were weighed down by weak performances in the UK and India, where Vodafone is facing intense competitive pressure and is merging its operations with those of Idea Cellular.

However, Vittorio Colao, Group CEO, sounded a bullish note, saying: "Sustained investment in network quality has provided the platform to offer more generous plans to our mobile customers in Europe, stabilising contract ARPU, and has allowed us to capture strong data growth in our emerging markets operations. We continue to be Europe’s fastest growing broadband provider, seizing the opportunities created by convergence and winning revenue market share, supported also by our Enterprise business which continues to outperform its peers."

For the financial the year to March 31, 2017, Vodafone reported 700 million euros of revenue from the Internet of Things. It also said it used data analytics to deliver 3.1 billion personalised offers in the financial year. Source: Vodafone presentation



Thursday, May 4, 2017

Facebook Continues to Call Slowdown

Facebook reported a 49% year-on-year increase in revenue to 8 billion US dollars. The social network said that ad revenues in "the rest of the world' region (essentially Latin America and Africa) and Asia-Pacific grew 66% and 60% respectively, while Europe and North America both grew 47%.

Facebook reported that the average price per ad increased 14% and the total number of ad impressions served increased  32%, primarily driven by mobile feed ads. However,  Facebook warned "we continue to expect that our ad revenue growth rates will come down meaningfully over the course of 2017. We expect that ad load will play a less significant factor in driving revenue growth after mid-2017. We also expect desktop ad revenue growth rates to slow in the third quarter  when we begin to lap our efforts to limit the impact of ad blockers."  source: Facebook transcript

Wednesday, May 3, 2017

Services Become Apple's Growth Engine

Apple forecast its revenues will rise between 3% and 7% year-on-year to between 43.5 billion and 45.5 billion US dollars in the current quarter.  In the quarter ending April 1st, revenues rose 5% to 52.9 billion dollars, fuelled by a 18% increase in services revenue to 7.04 billion dollars.

“Our services business grew 19% year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said Luca Maestri, Apple’s CFO. source: Apple statement
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