Increases in 5P and 3P bundles drive customer growth in first quarter 2016

There were 3.3 million subscribers to bundled services in Portugal as at the end of 1st quarter of 2016 (1Q16), increasing 1.7% over the previous quarter and 8.3% year-on-year. It is estimated that about 80.9 out of every 100 households had a bundle of service as at the end of 1Q16.

This growth in the number of customers resulted from increases in quintuple-play and triple-play bundles - quintuple-play with an increase of 30 thousand subscribers (+2.4%), and triple-play with an increase of 24 thousand subscribers (+1.8%).

Nevertheless, the growth reported over these first three months was lower than in previous periods. The percentage of subscribing households who have had their bundles for less than one year is falling and the growth reported in the number of subscribers was lower than forecast.

In total, revenues from bundled services were reported at around 415 million euros, with average monthly revenue per subscriber reported at 42.28 euros.

According to Marktest's Barómetro de Telecomunicações (Telecommunications Barometer), in the period being reported, the average monthly bill of households with bundled offers was 53.05 euros including VAT, increasing 1.7% over the same period of 2015.

In terms of the bundled services market, MEO was the provider with the highest share of customers (40.4%), followed by Grupo NOS (39.7%) and Vodafone (14.5%). Vodafone was the operator to report the largest increase in its share of subscribers in 1Q16.

Grupo NOS lead the market in terms of double, triple and quadruple-play, while MEO led in terms of quintuple-play bundles.

In terms of revenues, MEO reported a share of 43.6%, followed by Grupo NOS with 39.4%.

According to the Marktest Barometer, there was a significant increase in the number of customers with bundles of services expressing an intention to switch provider over the ensuing three months (8.1%). Meanwhile, 65% did not express an intention to switch, a third of these customers because they were bound by a contract lock-in period.

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