2Q19 Results: Vivo
When we comaper 2Q19 with 2Q18, Vivo's total net revenue increased 0.4%, being:
- +2.3% in mobile revenu, 31.9% of it in handset sales revenue;
- +9.4% in fixed broadband revenue;
- -1.9% in pay TV revenue;
- -16.8% in fixed telephony revenue.
Mobile ARPU reached R$ 28.7, being R$ 51.2 from postpaid (without M2M) and R$ 12.3 from prepaid.
EBITDA Margin hit 39.2% (IFRS 16) and net profit R$ 1.4 billion in the quarter.
2Q19 Results: SKY, AT&T, Google, Nokia, Huawei, and others
When we comaper 2Q19 with 2Q18, revenue increased:
- +27.6% at Facebook;
- + 19.9% at Amazon;
- +19.3% at Google;
- + 18.4% at Twitter;
- +15.3% at AT&T, due to the incorporation of Time Warner;
- +7.2% at Nokia;
- +2.0% at France Telecom;
- +0.8% at Comcast;
- 0.0% at Grupo Telefônica;
- -2.3% at Vodafone.
Mergers and acquisitions (M&A)
- Anatel's Competition Superintendence approved Claro's purchase of Nextel;
- AT&T's prior consent request to acquire Time Warner is already on Anatel's Board;
- The US Department of Justice (DoJ) has approved the T-Mobile USA merger with Sprint.
Pay TV
- Sky's revenue decreased 18.3% compared to 2Q19;
- Pay TV operators and US OTTs will lose US$ 9.1 billion in revenue due to piracy and account sharing. Currently, 27% of US broadband households perform some form of hacking or account sharing (Parks).
5G
- Tests conducted by Anatel seem to indicate that one filter is not enough to solve 5G signal interference problems at 3.5 GHz with open satellite TV (TVRO). The alternative considered would be to migrate TV to the Ku Band.
Oi
- Oi has put its fiber network (FTTH) into commercial operation in the cities of Caxias do Sul, Canoas, São Leopoldo and Alvorada;
- Oi's ON shares appreciated 4.9% in the week and the PN had losses 0.6%.
National Highlights
- TIM and Vivo have announced an agreement to share their 2G and 4G networks at 700 MHz in cities with up to 30 thousand inhabitants. The agreement must to be approved by Anatel;
- Brazilian Ministry of Science, Technology, Innovation and Communication will replace the Digital Cities program with a Smart Cities program, focusing on ICTs and based on telecommunications and IoT policy decrees;
- Vivo has activated VoLTE in more than 380 cities in Brazil;
- Anatel's Attorney's Office appealed against a decision of the Federal Court of Brasilia that suspended injunction suspending Fox do Brasil's broadcasting of linear channels offered by SeAC providers.
International Highlights
- Facebook has agreed to pay the US Federal Trade Commission (FTC) a US$ 5 billion fine for privacy violations and will have to create a separate, privacy-independent executive structure that will not obey the company's CEO;
- Apple is negotiating to acquire Intel's smartphone chip business, with discussions over a US$ 1 billion deal;
- Reliance Jio, India's second largest operator, has seen a growth of 116 million phones in the last 12 months. ARPU reached US$ 1.77 for a consumption of 11.4 GB per month.
Coming Weeks
- TIM's 2Q19 Results (July 30th).
