Among all the markets in which Telefónica delivers pay-TV, only in Spain has the telco reported substantial new customer numbers.
However, weak pay-TV subs additions don't seem to have been an issue for Telefónica’s revenues and profits, which have shown strong growth during Q3 2017, according to the telco’s financial report.
As seen in earlier quarters, pay-TV revenue growth is directly related to the company’s strategy to focus on increasing ARPU through convergent offerings across a growing fibre-to-the-home (FTTH) network.
In Spain, the telco has managed to add pay-TV subscriptions after a flat year, reaching 3.77 million households after growing by 1.5% year-on-year and 100,000 net additions between June and September 2017.
In this case, subs additions have played an important role in boosting convergence revenues. Compared with Q3 2016, income from the Fusión packages has grown by 9.7% to reach €1.15 billion.
Meanwhile, Brazil is Telefónica’s only pay-TV operation where both subscribers and revenues have fallen. Driven by an unstable market, the telco invoiced 2.8% less through pay-TV (€131 million) after subs dropped by 8.2% (over 150,000 loses over the year).
In the rest of Latin America, the telco continues to focus on increasing the number of bundled fixed accesses (45% of subscriptions are already convergent). As fibre and cable networks also improve, pay-TV accesses increased by 2% with net additions of 30,000 subs in the quarter (72,000 since January).
While the subs figure nears the three-million barrier, pay-TV organic revenues have increased by 11.1% during the quarter and by 11.7% since January.
“Third quarter results reflected the solid execution of the main strategic priorities set for the year. Thus, our organic growth is consistent and sustainable,” said José María Álvarez Pallete, chairman and CEO.
“Additionally, transformation remained key and the focus on digitalisation amongst the company's different operating areas has contributed to increase our differentiation and become more efficient, and will enable us to pave a new way to interact with our customers through cognitive intelligence while improving resource allocation.”