European mobile in Q2 2018 - North-South gulf emerges and threatens to widen further | Sep 2018

Sectors: 
Media
Telecoms
Companies: 
BT
EE
Hutchison 3G
Iliad
O2
Orange
T-Mobile
Telecom Italia
Telefonica
Vodafone

European mobile service revenue growth was sharply lower this quarter dropping to -0.7% after two years in positive territory, owing to weakness in the southern(ish) European markets of France, Italy and Spain

Iliad has strong momentum in Italy and we expect ARPU dilution to worsen into Q3, with the subscriber loss impact also growing.  Any loss of traction for Iliad is likely to drive another round of price cuts

We expect continued north/south divergence in Q3 with the anniversary of the European roaming cuts boosting the UK and Germany in particular whilst the outlook for Southern European operators remains challenging

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