0
Wireless

Dutch mobile revenues show bigger drop in Q2 as Covid-19 effects hit B2B market

Tuesday 15 September 2020 | 09:00 CET | News

The decline in mobile service revenues on the Dutch market accelerated in the second quarter to a 4.5 percent year-on-year fall to EUR 886 million, according to the latest research by Telecompaper. Less travel and more working at home due to the coronavirus meant lower roaming and out-of-bundle revenues and also slower customer growth. The continued pressure on especially the business market due to the pandemic effects has led Telecompaper to downgrade its forecast for full-year revenues in the latest edition of the Dutch Mobile Operators quarterly report.

In the same period of 2019, the Dutch market contracted only 3.0 percent on an annual basis, while mobile service revenues were down just 1.4 percent year-on-year in Q1 2020. The bigger fall in Q2 means Telecompaper now forecasts an around 4.3 percent drop in mobile service revenues over the full year 2020, to EUR 3.6 billion.

"The situation in the B2B market is likely to remain difficult in the months ahead due to the economic recession and more businesses re-evaluating their ICT needs," said Alejandra van de Roer, Telecompaper mobile market analyst and author of the Dutch Mobile Operators report. "Overall operators are expected to remain focused on FMC packages to help limit customer churn, while promoting higher-end plans more in an attempt to boost revenues."

FMC take-up grows to 43% of consumer postpaid

The coronavirus crisis had an impact especially on the B2B revenues in the second quarter, mainly due to lower outbound and visitor roaming. In addition the mobile operators face the longer-term trend of increased take-up of fixed-mobile converged (FMC) packages. These often come with discounts on the mobile plan, putting pressure on revenues. 

At the end of June, 43 percent of Dutch consumer postpaid mobile contracts were linked to fixed services from the same operator, up 4 percent points in the past year. In total, nearly 4.6 million consumer postpaid Sims were part of FMC packages in Q2. KPN, which was the first on the market to introduce FMC offers, accounts for just under half the Sims, while VodafoneZiggo took 43.5 percent of the FMC Sims in Q2. VodafoneZiggo led the market growth in the past year, with nearly 7 in 10 of its postpaid consumer customers now on a fixed-mobile package.

The discounts offered on such packages, along with the pressure in the B2B market contributed to both operators underperforming the mobile market in Q2. They reported annual declines of 8.3 percent at KPN and 7.1 percent at Vodafone in quarterly mobile service revenues. In contrast, T-Mobile increased service revenues 3.4 percent, driven by steady customer growth at the operator. 

The above figures are based on Telecompaper’s Dutch Mobile Operators Q2 2020 report, which is now available for purchase. The quarterly report provides a full analysis of all the KPIs and trends on the mobile market, including a five-year revenue and Sims forecast. To order a copy of the latest edition of the report or receive a customised market analysis, please contact research@telecompaper.com. 



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: Mobile & Wireless
Companies: KPN / Telecompaper / T-Mobile Netherlands / VodafoneZiggo
Countries: Netherlands
::: add a comment
This article is part of dossier

Coronavirus


Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.


Related

Dutch Mobile Operators 2020-Q2

Published 09 Sep 2020 14:49 CET | Netherlands
This latest report from Telecompaper's continued research into developments in the Dutch communication services market looks at ...

Dutch Broadband 2020-Q2

Published 01 Sep 2020 16:00 CET | Netherlands
This report analyses developments in the second quarter of 2020 in the Dutch market for broadband internet access, focusing on ...

T-Mobile leads Dutch broadband growth in Q2, KPN slows losses

Published 25 Aug 2020 08:00 CET | Netherlands
T-Mobile again led growth on the Dutch broadband market in the second quarter. The challenger added 12,000 new subscribers, ...

Dutch mobile subscriber growth slows in Q2 as Covid restrictions impact sales

Published 17 Aug 2020 10:14 CET | Netherlands
The underlying trends remain similar to recent quarters, but with a notable downwards tick in the number of net additions. ...

T-Mobile Netherlands revenues up 5% in Q2, adds 50,000 postpaid subscribers

Published 13 Aug 2020 09:48 CET | Netherlands
T-Mobile Netherlands recorded second-quarter revenues up 5 percent to EUR 480 million. EBITDA jumped 22 percent to EUR 143 ...

VodafoneZiggo sales growth slows, margin improves on lower costs in Q2

Published 04 Aug 2020 08:59 CET | Netherlands
VodafoneZiggo reported second-quarter revenues up 1.8 percent to EUR 983 million, with an improved margin of 49.1 percent. The ...

KPN maintains outlook as underlying revenue falls 3% in Q2

Published 27 Jul 2020 08:56 CET | Netherlands
Dutch operator KPN reported a drop of 3.0 percent in underlying revenues in the second quarter, to EUR 1.29 billion. Including ...

KPN loses market share in growing Dutch consumer market

Published 20 Jul 2020 10:33 CET | Netherlands
KPN's share of consumer telecom revenues in the Netherlands fell by 2.2 percent in the first quarter to just under 34 percent, ...

Dutch mobile market limits Q1 revenue fall to 1.4% on strong T-Mobile growth

Published 19 Jun 2020 10:30 CET | Netherlands
Mobile service revenues totaled EUR 903 million in the first quarter, according to the Telecompaper quarterly Dutch Mobile ...





Calendar   /   Industry Events

22 Sep BIG 5G Event
23 Sep Submarine Networks Wold 2020
23 Sep China SDN/NFV/AI Conference
23 Sep Samsung Galaxy Unpacked event
28 Sep Open Networking & Edge Summit
28 Sep The Edge Event
29 Sep Micron Technology fiscal Q4
29 Sep Tech & Politics Forum by FT-ETNO
29 Sep VMworld
29 Sep ConnecTechAsia
::: More Calendar Items