French telecom operators saw first quarter service revenues across the fixed, mobile and added-value segments increase 1.0 percent year-on-year to EUR 7.66 billion (+1.1% in Q4), according to regulator Arcep. Growth in the sector continued to be driven by the mobile segment, where service revenues increased by 3.1 percent to reach EUR 3.33 billion (+3.7% in Q4).
While staying in slightly negative territory, the trend improved in the fixed segment, which recorded a 0.3 percent fall (-0.6% in Q4) on revenues worth EUR 4.10 billion. Similarly, the ongoing contraction experienced by added-value services eased in the first quarter, with revenues down 2.7 percent to EUR 227 million (-4.2% in Q4).
The ancillary category, mainly grouping handset and equipment sales, saw revenues decline by 8.2 percent year-on-year to EUR 955 million, impacted by the start of the Covid-19 lockdown in March and the temporary closure of physical stores across France. When including ancillary sales, telecom revenues amounted to EUR 8.62 billion, nearly stable (-0.1%) compared with the year-earlier period (+0.9% in Q4).
While dropping slightly quarter-on-quarter, average monthly bills for both fixed and mobile services recorded a modest increase from Q1 2019, standing at EUR 31.70 and EUR 14.30 respectively.
The quarter was marked by a strong rise in call minutes, as end-users changed their communication habits due to the Covid-19 pandemic. Call volumes across fixed and mobile networks reached 65.4 billion minutes, in a record quarter over the last 20 years. Overall minutes increased 13.3 percent year-on-year, compared with the 3 percent fall recorded in Q1 2019. Growth was driven by mobile call minutes, which rose 17.7 percent to 51.84 billion.
