First half worrying for SFR

The quarterly results of SFR are not very good and, especially, the recruitment of new subscribers are in free fall.

If Vivendi, parent company of SFR, is doing very well with a result an increase of 20.2% over the first half of the year, the accounts of the operator are for their part not to the beautiful fixed with net sales decreased by 2% and disturbing recruitment rates, both on the fixed than the mobile. Thus, on the six first months of the current year, the SFR CA levelled off at 6.12 billion euros. For SFR, the scapegoat is all found, it is the increase of VAT which has not been passed on the price of its subscriptions (a gift that was to prevent leakage of subscribers by possible terminations without charge). SFR explains such that the VAT increase set apart, its CA would have increased by 2.7%.

Is that in the results, the turnover of mobile activity is down 3.9% (to 4,257 billion euros) in the first half. Losses not fills the CA on the high speed Internet rose by 1.3% to almost EUR 2 billion. Numbers that could go if the rate of recruitment had not sunk. SFR has recruited only 220,000 new mobile clients for the first half, against 540 000 new clients recruited last year. For a total of 21,059 million customers arrested late June 2011. As the fixed Internet, it is even more alarming, with only 96 000 new subscribers recruited against 238 000 a year earlier. For a total of 4,983 million customers.

However, SFR has multiplied the new, between its new access Evolution adopted by 415 000 customers and a decrease in average 25% of its rates on the mobile, not to mention the launch of the "Square" specially offers thoughts to avoid the leak subscribers. SFR will have to redouble their efforts to reverse the trend.