The six month-old joint venture between Vodafone and Liberty Global in the Netherlands has made an unspectacular start to life, its first set of half-year financials have revealed.

Revenues declined 2.9 percent to €2.01 billion in the six months to June compared to the equivalent period last year before the merger.

Sales of fixed services to businesses jumped 4.5 percent in the period but the only bright spot accounts for just €176.5 million of total revenues.

Fixed services to retail customers, the JV’s major revenue driver, brought in €1.05 billion, but this was a fall of one percent.

It is in mobile where the company is struggling, however.

Mobile revenues from retail subscribers fell 5.9 percent to €447 million, while those from business customers dropped 8.8 percent to €315 million.

The company has sold 5.05 million mobile SIM cards, down from 5.24 million 12 months ago.

Net SIM losses across both postpay and prepay were over 52,000 in Q1 and over 23,000 in Q2.

Further, the ARPU of postpay customers, who account for 80 percent of the JV’s total mobile subscriber base, has fallen from €29 to €26.

The company cited a range of factors for the poor performance of mobile, including roaming regulation and competition, particularly in the business market.

Nevertheless, the company talked up the launch of a converged offer in April, which has been taken by 633,000 households and includes 872,000 mobile SIMs.

The offer includes a mobile data allowance that is double the usual, an “extra premium” TV package and an internet security package.

The company said 64 percent of fixed customers take three services, while 17 percent take two.

"While competition in the mobile market remains intense, we are making good operational progress, the merger integration process is going well and we are on track to become a fully converged player,” CEO Jeroen Hoencamp said.

“Looking ahead, we expect mobile termination rate cuts and roaming regulation, combined with an ongoing drag in B2B mobile, to weigh on our mobile revenue.

“Despite these headwinds and higher expected integration costs resulting from the acceleration of our restructuring efforts during the second half of the year, we are confident that we can achieve our full-year OCF guidance and deliver attractive cash returns for our shareholders."

Read more: Liberty Global sees Q2 sales rise but posts net loss

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms