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With most European telecoms results for 2Q17 now out, the top-line picture looks improved, with a bright light shining on most groups’ top-line results.
The rapid declines witnessed in the past 10 years are luckily a thing of the past, even if the trajectory might not remain for the rest of the year – mainly due to EU roaming regulation, which will have a negative effect on performance in 3Q17, the first full quarter to see the new regulation in effect.
The exception to the overall positive story is Vodafone’s top-line results. Reported revenues from Vodafone in Europe are down 4.8% year on year in 2Q17 (compared to the group’s overall drop in revenue of 3.3%), with the UK being a major drag on the group’s European performance. This is partially due to negative effects caused by the drop in value of the British pound against the euro.
Meanwhile, Deutsche Telekom’s revenue was up 5.9% year on year in 1H17, mainly due to strong growth in its customer base in the US but also due to positive performances in Germany (0.4% revenue growth) and the rest of Europe (1.5% growth).
Telefonica Group’s revenue was up 1.9% year on year in 2Q17, but none of its major European markets performed positively: Spain, Germany, and the UK all saw drops in revenue, falling 2%, 3.4%, and 6.1%, respectively.
Orange Group’s revenue rose 1.4% in the quarter, with positive results in all of its European businesses, especially Spain (up 6%) and Central European countries (up 7.7%). Revenue in France, the group’s home market, was up 0.5% in 2Q17. All of Telia’s non-domestic European markets recorded positive performance, with Finland and Norway particularly strong (up 6% and 19.2%, respectively), but revenue in its home market, Sweden, declined 2%. Telenor posted growth of 2%, with change relatively flat in its home market of Norway, where it saw a 0.3% drop, but positive in all other major European operations.
Veon’s group revenue was up 8.5% year on year in 2Q17. Russia, its home market, saw growth of 18.7%, much of which was due to exchange rates, with organic growth in the quarter standing at 3%. The group also recorded growth of 5% in Ukraine in the quarter, and the newly merged Wind/3 operations in Italy were up 0.18% year-on-year in 1H17.
Finally, Telekom Austria Group saw revenue grow 5.1% in 2Q17, with revenue up in all markets except Macedonia, where it was down by 5%. Its home market saw growth of 2.5%. It remains to be seen how Telecom Italia and Russian MTS will do – their results are set to be published Aug. 15 and Aug. 22, respectively – but overall, the European picture is much rosier than it used to be.
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