Austrian mobile service revenues still down 8.1% year-on-year in Q2

Monday 30 September 2013 | 15:25 CET | Background

The consolidation of the Austrian mobile market to just three network operators earlier this year has yet to halt the extreme price pressure and annual decline in revenues there. The number of mobile customers in Austria amounted to 13.2 million at the end of the second quarter of 2013, up by 27,000 year-on-year. However, mobile service revenues dropped by 8.1 percent compared to a year earlier to EUR 612 million in Q2 2013, as the intensely competitive market conditions continued. Below we provide the latest figures and highlights from Telecompaper's database on the Austrian mobile market.

3 Austria adds most new customers

The Austrian mobile market consists of three operators (A1, T-Mobile, 3 Austria) after the acquisition of Orange Austria by 3 Austria in January 2013 and the subsequent sale of Orange’s discount brand Yesss! to A1

While 3 Austria is still the smallest operator, it grew the fastest in terms of customer numbers in Q2 2013. 3 Austria added 56,000 customers during the three months to end June with a total 3.34 million or 25 percent of the market. A1 lost 56,000 to end with 5.79 million customers, and T-Mobile Austria shed 17,000 customers to reach 4.07 million. Including M2M and MVNO lines (except for T-Mobile which does not include these figures), the Austrian mobile market had a total 13.2 million Sims at the end of the second quarter of 2013, down by 16,000 or 0.1 percent from three months earlier. The decline was mainly due to A1 cleaning up the acquired Yesss! customer base, based on a different definition of active prepaid customers.

Figure 1: Austrian  mobile connections per MNO (x millions) and quarterly service revenues per MNO (in millions of euros). Sources: company annual reports, Telecompaper estimates.

Service revenues recover on sequential basis in Q2

Austrian mobile service revenues increased 15.5 percent compared to the first three months of the year to EUR 612 million in Q2 2013. Compared to a year earlier, service revenues were still down by EUR 54 million or 8.1 percent, as intense competition pushed prices lower. Voice revenues dropped 9.9 percent year-on-year, and data revenues decreased by 6.8 percent, although both recovered during the second quarter with 21.7 percent and 9.1 percent quarterly growth respectively. 3 Austria saw its revenues grow by more than 150 percent year-on-year and more than 115 percent compared to Q1 2013 due to the acquisition of Orange. In total it recorded EUR 153 million in service revenues for the quarter, good for 25 percent of the market. A1 added 2 percentage points of service revenue market share due to the takeover of Yesss!, but its revenues decreased both year-on-year and sequentially. T-Mobile Austria was still the second-largest operator in terms of service revenue with 29 percent, down by 1 percentage point year-on-year. 

Penetration at 156 percent, Sim growth to continue

The mobile penetration in Austria already amounts to more than 156 percent of the population, due to the high uptake of mobile data services, leading to many customers having two SIM cards. According to Austrian telecommunications regulator RTR, there were 2.22 million mobile broadband subscribers with a laptop or tablet at the end of the first quarter of 2013. This is more subscribers than in the fixed broadband market, which stood at 2.168 million on 31 March 2013. The above figures are based on Telecompaper’s database on the Austrian mobile market, which are available for purchase. For more information, click here.

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