Posts Tagged Financial
Vivendi revenues up 24%, driven by 31.5% rise in sales at SFR (France)
French communications and entertainment group Vivendi reported a 23.7% year-on-year rise in consolidated revenues (22.1% at constant currency) to EUR6.5 billion (USD8.83 billion), as a result of strong performance from the likes of telecoms arm SFR and expected synergies delivered following recent acquisitions. Group EBITDA reached EUR1.4 billion, an increase of 15.8% (13.8% at constant currency) compared to the first quarter of 2008. Vivendi said adjusted net income was EUR649 million, down EUR48 million compared to the first quarter of 2008, mainly due to the increasing interest and share of earnings attributable to minority interests. Nonetheless, the company confirmed its 2009 outlook for strong growth of EBITA.
SFR’s revenues increased to EUR3.028 billion in the three months ended 31 March 2009, up by 31.5% compared to the same period in 2008, due to the consolidation of neuf Cegetel since 15 April 2008. On a comparable basis, SFR’s revenues decreased by 0.8% y-o-y, although excluding the impact of the decrease in switched voice revenues and equipment sales, SFR revenues increased by 1.4%, it said. Mobile turnover generated EUR2.181 billion in sales which Vivendi said was ‘stable’ due to a EUR22 million decrease in equipment sales to EUR77 million. Mobile service revenues, however, rose 1.2% year-on-year to EUR2.104 billion, driven by growth of the customer base and a sharp (36%) rise in data revenues following the launch of unlimited SMS and MMS offers, and strong development of mobile internet services in the mass market and enterprise segments. SFR added 118,000 net new mobile customers in January-March, equivalent to 51% of net additions in the period. Furthermore, SFR reported an improvement in its customer mix (+3.5 percentage points year-on-year to 69.6%), adding 178,000 new post-paid customers in the period to achieve 13.76 million contract customers at the end of March 2009. SFR launched the iPhone on 8 April, and says it has already sold 120,000 handsets.
SFR (including neuf Cegetel) reported broadband internet and fixed revenues of EUR934 million in 1Q09, down 2.7% compared to the same period in 2008 on a comparable basis. Broadband internet and fixed revenues increased by 2.3%, excluding the impact of the decrease in switched voice revenues. Aided by the launch of the ‘neufbox by SFR’, SFR added 163,000 net new broadband internet active customers in the period (or >30% of all quarterly net additions). At the end of March 2009 SFR’s broadband subscriber base totalled 4.042 million, up 9.3% compared to the same period in 2008. In addition, SFR had 164,000 Enterprise data links connected to the SFR network, 10.1% higher than a year earlier. SFR’s broadband internet and fixed EBITDA, including neuf Cegetel’s operations since 15 April 2008, decreased by EUR19 million on a comparable basis to EUR133 million.
Add comment May 15, 2009
life:) announces Q1 results (Ukraine)
Ukrainian wireless network operator life:) has published its results for the three months ended 31 March 2009, showing an annual 22.3% increase in subscribers to 11.5 million. Of the total, 8 million were deemed by the operator to be ‘active’, having made or received a call/SMS in the last three months. Revenues in the first quarter of 2009 were USD79.1 million, a 12.3% decrease compared to the same period of 2008. EBITDA was USD3.6 million, compared to USD2.1 million in the same period of 2008, while net losses were USD24.4 million, down from a loss of USD32.4 million in Q1 2008. General director of life:) Tansu Yegen said: ‘The first quarter of 2009 has been very challenging for the economy of Ukraine with the worsening macroeconomic situation seriously effecting the business. The national currency depreciated by around 52% against the US dollar as of 31 March 2009 compared to a year ago, although remained stable compared to the previous quarter.’
Add comment May 15, 2009
VIP doubles revenues; subs down after base ‘clean out’ (Macedonia)
Mobilkom Macedonia (VIP Mobile) doubled its revenues in the first quarter of this year, according to the financial report published by its parent Telekom Austria. In the three months under review VIP Mobile reported revenues of EUR3.9 million (USD5.3 million), compared with EUR1.8 million in the same time period last year. The strong rise was attributed to ‘high subscription fees’ as well as a significant increase in the number of customers on its books. Nevertheless, the company posted a net pre-tax loss of EUR4.3 million in the first three months of 2009, down from a loss of EUR6 million in the same time period last year. VIP Mobile, the third largest mobile operator in the Republic of Macedonia by subscribers, had 213,000 customers by 31 March 2009, compared to 163,300 customers a year earlier. The number of subscribers has declined from 242,000 at the end of December 2008 however, as a result of the firm removing inactive customers from its base.
Add comment May 15, 2009
Turkcell revenues down 18.5% (Turkey)
Turkey’s leading mobile operator by subscribers, Turkcell, has reported revenues of USD1.28 billion for the first quarter of 2009, an 18.5% year-on-year decline attributed by the cellco to depreciation of the Turkish lira against the US dollar. EBITDA for the three months ended 31 March fell by 18.2% to USD472 million, compared to USD577 million in the same period a year earlier. Net income was down 29.3% to USD344.2 million from USD486.8 million in 1Q 2008. ‘I am very pleased that Turkcell’s technology leadership, improved efficiency and customer focus resulted in solid financial results in the first quarter of 2009 despite the global economic downturn,’ Turkcell CEO Sureyya Ciliv said, ‘We plan to build on our strengths in technology, efficiency, and customer service. We are particularly excited about launching 3G services in Turkey within three months.’ The company added 1.3 million net new customers in the quarter, with 36.4 million users at the end of March.
Add comment May 15, 2009
Bouygues Q1 revenues climb 6% (France)
French mobile operator Bouygues Telecom posted a 6% increase in sales for the three months to 31 March 2009 on the back of solid subscriber growth. Sales from network services grew 5% year-on-year to EUR1.175 billion (USD1.603 billion), including a EUR9 million contribution from its fixed line business, it said. Bouygues added a net 144,000 new mobile customers in the first quarter of 2009, compared with 51,000 in the first quarter of 2008. As at 31 March 2009, Bouygues Telecom’s cellular user base totalled 9.739 million, of which 7.348 million were on post-paid contracts — 75.5% of the total customer base — a year-on-year increase of 1.7 percentage points.
Add comment May 14, 2009
Clearwire narrows losses, reports user growth, signs up Cisco (USA)
Clearwire, the US wireless broadband operator 51% owned by Sprint Nextel, has reported a narrowing of first-quarter losses to USD71.06 million, compared to a pro forma loss of USD76.44 million a year earlier (before Sprint and Clearwire unveiled their USD12 billion partnership to combine their planned nationwide mobile WiMAX networks). Revenue in the three months to the end of March 2009 rose 21% year-on-year to USD62.1 million. According to TeleGeography’s GlobalComms database, Clearwire provides broadband internet services in at least 50 markets nationwide via fixed wireless networks which utilise a combination of pre-WiMAX and true 802.16e mobile WiMAX technologies. Clearwire, which has so far launched commercial WiMAX in Baltimore and Portland, Oregon, reported that it added 25,000 subscribers in the first quarter, bringing its total base to 500,000 (up 57,000 year-on-year). The firm expects to add 802.16e networks in Atlanta, Las Vegas, Chicago, Charlotte, Dallas/Fort Worth, Honolulu, Philadelphia and Seattle during 2009. The company said yesterday that it still plans to expand its ‘Clear 4G’ WiMAX service to 80 markets covering a potential 120 million customers by the end of 2010 but the plan could be altered depending on the availability of capital.
Also announced yesterday, Clearwire has selected Cisco as its national core infrastructure provider as it expands mobile WiMAX network coverage across the US. Clearwire’s all-IP network will be upgraded and extended under the deal, whilst separately, Cisco is also planning to move into the mobile WiMAX terminal device manufacturing market this year.
Add comment May 14, 2009
Cosmote to pay EUR 200 mln for Zapp Romania
Greek telecommunica group Cosmote has reportedly reached an agreement with Saudi Oger over the takeover of Romanian mobile operator Zapp, Business Standard Romania reports. Cosmote will pay a “little over” EUR 200 million for 100 percent of Telemobil shares, the company that owns Zapp Romania, and is expected to sign the deal next month. With this acquisition, Cosmote aims to obtain Zapp’s 3G licence for its Romanian subsidiary Cosmote Romania, which is the only Romanian mobile operator without a UMTS concession.
Source- www.telecompaper.com
Add comment May 13, 2009
Vodafone, Hutchison Whampoa to Merge Australian Networks
Vodafone and Hutchison Whampoa have announced plans to merge their Australian networks to form a single mobile operator. Both companies will own 50% of the joint venture – which will retain the Vodafone brand name, although they retain the rights to the “three” brand as well. To equalise the value difference between the respective businesses, Vodafone will receive a deferred payment of A$500 million (US$337 million) from the joint venture company, VHA (Vodafone Hutchison Australia).
Utilising existing network arrangements and planned network build, VHA will operate a mobile network with at least 95% population coverage, of which 63% will have access to 3G services. Upon completion of additional network roll outs, VHA’s 3G population coverage is planned to increase to 95%.Based on figures from the Mobile World subscriber tracker, the merged firm would ended last September with a shade over 6 million customers – representing 26.3% of the market. It will still be the smallest of (now) three operators in the country – close behind Optus’ 7.4 million and Telstra’s 9.5 million customers.
Add comment February 10, 2009
PCCW shareholders approve buyout, subject to probe; confirms job cuts (Hong Kong)
PCCW’s minority shareholders yesterday approved a proposal to take the Hong Kong-based telco private, but the securities regulator will launch an investigation following allegations of vote-buying, reports Bloomberg. PCCW’s largest shareholder, chairman Richard Li, and major stakeholder China Netcom (part of China Unicom) offered HKD15.9 billion (USD2.05 billion), or HKD4.50 per share, for the remaining 52% of PCCW, and the offer was supported by more than 75% of stockholders. The deal requires High Court approval before the shares are delisted, and a hearing is set for 24 February. The Securities & Futures Commission immediately took possession of the voting records and will start investigating the buyout process, following allegations that insurance agents were offered stock in return for supporting the proposal. PCCW said it has ‘no knowledge of any improper share transfers.’ PCCW’s shares have lost 97% of their value since Li took control of the former Cable & Wireless HKT in 2000. The company has a market capitalisation of USD3.6 billion based on yesterday’s share price. The fixed line, broadband, mobile and TV operator saw its first-half net profits slump by 20% last year.
In other news PCCW yesterday confirmed that it plans to implement measures to cut its costs by up to 30%, including redundancies, but declined to divulge the potential number of jobs that will be lost. Union staff had earlier alleged that the group planned to lay off 600 employees, or around 5% of its workforce. PCCW has increased its staff total by 40% to 17,000 in the last four years.
Add comment February 5, 2009
Paltel sets 9 February date for decision on Zain offer
According to online portal MEED, Palestine Telecommunications Company (Paltel) will make a decision regarding the sale of minority stake to Kuwait-based telecoms group Zain on 9 February. Paltel, which holds a monopoly in the fixed line sector in the West Bank and Gaza, will assess the offer at a meeting of its board of directors. The announcement comes after reports at the end of January 2008 that talks between Paltel and Zain regarding a stake sale were at ‘advanced’ stages.
Add comment February 5, 2009
Mobistar full year results in line with forecasts, expects lower net profit in 2009
Belgium’s second largest cellco by subscribers, Mobistar, has released financial results for its 2008 fiscal year, revealing earnings in line with forecasts. Total revenue for the operator for the twelve months ended 31 December 2008 rose 1.7% year-on-year to EUR1.57 billion (USD2.03 billion), although service revenue fell 0.1% to EUR1.44 billion. The drop in service revenue was attributed to continued pressure on prices and mobile termination rates (MTR), alongside the lowering of roaming fees for both voice and data. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 0.1% y-o-y to EUR591.6 million, while net profit for the twelve-month period also dropped to EUR280.1 million, down from EUR289.9 million a year earlier, a 3.4% decline. Mobistar has indicated that it expects to see net profit fall further in 2009 as a result of increased regulatory pressure and the declining economic climate.
Mobistar reported that its combined subscriber base at the end of the year had risen to 3.74 million, up almost 250,000 against the same time a year earlier. Average revenue per user (ARPU) however, had reportedly fallen by 5.9% over the year to EUR32.5 per month at 31 December 2008.
Add comment February 5, 2009
Mobile, internet operations drive NTT 9M profits
Japanese behemoth Nippon Telegraph and Telephone Corp (NTT) today reported a 70% jump in net profits for the period April-December 2008, fuelled by solid growth at its fixed line internet business and mobile division NTT DoCoMo. The Tokyo-based telco said profit for the period under review climbed to JPY544.08 billion (USD6.5 billion), up from JPY322.22 billion in the corresponding period of 2007. Group revenues fell from JPY7.84 trillion to JPY7.73 trillion, although operating profit rose by 16% from JPY874.38 billion to JPY1.01 trillion. NTT has maintained its full year outlook of net profits of JPY560 billion on sales of JPY10.6 trillion, for the twelve months to 31 March 2009.
Add comment February 5, 2009
Spice Nepal stumps up USD2.7m in royalty fees
Amid growing pressure from the government to clear its royalties payments backlog, Spice Nepal (Mero Mobile) of Nepal, has finally paid NPR219.4 million (USD2.7 million) to the government – equivalent to 4% of the gross annual income of the operator. Spice Nepal, which launched commercially in September 2004, had agreed to pay either 4% of income or yearly royalties fixed at NPR15 million, whichever was higher, in the first year of operation. The amount was to rise to NPR42 million in the second year of operation; NPR100 million in the third; NPR200 million in the fourth; and NPR265 million in the fifth. However, to date Spice, which is the second largest mobile phone operator in the country with around 1.6 million subscribers, has only paid NPR150 million.
Add comment February 5, 2009
Softbank 3Q profit up 2%; maintains full-year outlook
Japanese telecoms group Softbank Corp has reported a 2% rise in third-quarter operating profit as a result of its decision to lower voice call charges and reduce handset subsidies, but stuck to its forecast for modest full-year growth of 4.8% to JPY340 billion (USD3.8 billion). In the three months ended 31 December 2008 Softbank posted operating profit of JPY94.7 billion, up 2% year-on-year from JPY92.4 billion profit previously. The operator said its results were bolstered by strong performances from its fixed line operation and at Yahoo Japan Corp, in which Softbank has a 41% stake. On the results, Softbank chief executive Masayoshi Son said: ‘The impact of discounts was still big until December, but since more and more people will come out of their 24-month payment period from now on, we can expect big profit growth … The actual operations are improving strongly.’
Add comment February 5, 2009
Nortel Bankruptcy and Costs Pushes Alvarion into Quarterly Loss
Israeli WiMAX vendor, Alvarion, which recently had to break up its mobile WiMAX deal with Nortel has swung into a fourth-quarter loss due a restructuring charge and the Nortel problem. The firm reported a quarterly loss of US$4.8 million, compared to a profit of US$12.4 million a year ago. Revenues rose 6 percent to $70.1 million, a decrease of 6% from $74.3 million in the third quarter of 2008, and increase of 6% from $66.3 million in the fourth quarter of 2007.Excluding a restructuring charge of US$3.4 million and other one-off items, the company reported a net income of $119,000, down from $3.1 million a year ago.
The sequential decline in revenues was primarily a result of Alvarion’s inability to recognize $2.4 million of revenues from the sale of products to Nortel Networks during the fourth quarter of 2008 after Nortel filed for bankruptcy protection in January and subsequently repudiated the joint WiMAX agreement between the two companies. The decline in Q4 gross margin was due to the write-off of the cost of the equipment related to the Nortel sales in the period.
Add comment February 5, 2009
Svyazinvest sees 6.5% rise in full-year profit (Russia)
Russia’s state telecoms holding company Svyazinvest has reported a 6.5% increase in net profit for full-year 2008 under Russian Accounting Standards (RAS) to RUB27 billion (USD747 million). Sales climbed 3.6% to RUB253 billion, while EBITDA rose 12% to RUB82 billion. The Svyazinvest group incorporates seven mega-regional fixed line operators which control around 32.5 million lines and 3.3 million broadband internet accounts between them; its cellular operations claimed a total of twelve million customers at end-2008.
Add comment February 4, 2009
Motorola posts massive loss as handset sales plummet
US-based equipment manufacturer Motorola has reported a massive USD3.58 billion loss for the fourth quarter of 2008 caused by large write-downs and restructuring costs as the firm attempts to turn its business around. In the same period in 2007 Motorola saw a net profit of USD100 million. Turnover for 4Q 2008 dropped 26% year-on-year to USD7.14 billion, with the company saying this was ‘primarily attributable to lower sales of mobile devices’. It shipped 19.2 million handsets in the three months to end-December 2008, less than half the 40.9 million shipped a year before. The vendor is predicting further losses in 1Q 2009. Meanwhile, Motorola has also announced the departure of chief financial officer Paul Liska. Senior VP and corporate controller Edward Fitzpatrick has assumed the position of acting CFO until a permanent replacement can be found.
Add comment February 4, 2009
Bell Aliant issues results, forecasts (Canada)
Regional Canadian telco Bell Aliant has posted 0.9% year-on-year rises in both operating revenues and EBITDA for full-year 2008, to CAD3.28 billion (USD2.64 billion) and CAD1.45 billion, respectively. Annual CAPEX fell by 2.4% to CAD529 million. High speed internet subscribers increased by 10.7% in twelve months, to 762,000 at end-December, with broadband monthly ARPU in the fourth quarter of 2008 reaching CAD36.71, up by 6.7% compared to the same quarter of 2007. Fixed line subscribers stood at 3.09 million at end-2008, down from 3.20 million a year earlier. Bell Aliant also issued guidance for 2009, including operating revenues of between CAD3.18 billion and CAD3.28 billion. Capital expenditures are expected to be between 13.5% and 14.5% of operating turnover in 2009 (down from 16% in 2008), with expansion of broadband services a strategic priority.
Add comment February 4, 2009
Still no IPO date for Vodafone Qatar
Vodafone Qatar’s CEO Grahame Maher has told the Gulf Times that the start-up is still awaiting approval from the Qatar Financial Markets Authority (QFMA) for an initial public offering (IPO), a pre-requisite for launching services in the country. Vodafone Qatar plans to launch GSM-based mobile services for 1,000 trial users on 1 March, but has not agreed a firm date for an IPO of 40% of its shares, which it previously said should go ahead sometime this month. Maher also told the paper that he was confident that outstanding issues with the state’s current sole operator Qatar Telecom (Qtel), including interconnection charges, would be resolved by the start of March.
Add comment February 4, 2009
Tiscali targets UK operations sale by March
Italian service provider Tiscali aims to finalise the sale of its British operations by the end of March 2009, Reuters reports citing comments by the company’s chief executive Marco Rosso. In November 2008 it was revealed that Tiscali was in talks with BSkyB regarding the UK-based subsidiary, but disagreements over the value of the assets saw the discussions stall. Tiscali had said it expected to raise GBP600 million (USD856 million) from the sale but BSkyB valued the unit at GBP450 million. Mr Rosso also said that Tiscali is planning for the eventuality that it may not divest interest in the UK arm; ‘We have a plan approved internally for one option or the other, nothing is excluded. The major effort is concentrated on reaching agreement on a sale.’
Add comment February 4, 2009
Motorola Reports Quarterly Loss of $3.6 Billion – Seeks Replacement CFO
Motorola has reported that it generated sales of US$7.1 billion in the fourth quarter of 2008 – and a net loss of US$3.6 billion, driven mainly by write-downs of goodwill and an increase in deferred tax asset valuation reserves. During the quarter, the Company generated positive operating cash flow of $201 million.For the full year 2008, sales were $30.1 billion, and the net loss was US$2.4 billion.The Company’s outlook for the first quarter is a loss of around US$250-$300 million. This outlook excludes charges associated with the Company’s operating expense reduction initiatives, as well as any other items of the variety typically highlighted by the Company in its quarterly earnings releases.
The Company also announced today that its Board of Directors voted to suspend the declaration of quarterly cash dividends on the Company’s common stock, effective immediately. The Board believes suspending the dividend will further strengthen the Company’s balance sheet and enhance its financial flexibility.
Add comment February 4, 2009
Vodafone reports fiscal 3Q results, revises full year guidance (UK)
Vodafone, the UK-based mobile group, has revealed a year-on-year increase in revenue to GBP10.47 billion (USD14.97 billion) for its third fiscal quarter ended 31 December 2008, citing a boost in exchange rates as a key factor in the rise. However it reported that quarterly revenue had fallen 1% on an organic basis. Organic revenue from the group’s European subsidiaries fell 1.4%, and while results had stabilised in the UK, and had been solid in Germany and Italy, the company’s Spanish arm saw a decline of 5.8% in organic revenue, faster than the previous quarter. Group-wide, revenue from data services increased 25.3% year-on-year to GBP786 million, and accounted for 8.13% of total revenue, up from 6.44% a year earlier.
Additionally, having announced a cost-saving programme in November 2008, Vodafone claimed it had made good progress with the plans and revealed that it expected to have saved approximately GBP500 million by the end of the 2010 financial year, rising to GBP1 billion by 2011. As a result of foreign exchange movement the group has revised its full year guidance, increasing its revenue target to GBP40.6-41.5 billion, whilst adjusted operating profit is expected to be between GBP11.5 billion and GBP12 billion.
The group reported a rise of 9.5 million in its total mobile customer base to 289 million at the end of December 2008. It recorded record customer growth at its Indian subsidiary, Vodafone Essar, adding 6.3 million subscribers over the quarter, bringing its total to just over 60 million.
Add comment February 3, 2009
Globe reports strong Q4 revenues, but full-year net profits down 15%
The Philippines’ second largest telecoms group by subscribers, Globe Telecom, a subsidiary of Philippine conglomerate Ayala Corp and Singapore Telecom (SingTel), recorded its highest quarterly revenue performance in the three months ended 31 December 2008, with service revenues of PHP16.3 billion (USD343.3 million), up 5% quarter-on-quarter and surpassing the previous record of PHP16.1 billion – booked in the fourth quarter of 2007. The operator said the strong quarterly performance was driven by strong holiday demand and the positive impact of new mobile and broadband offers it launched in the fourth quarter. Nonetheless, Globe’s full-year net income for 2008 was PHP11.28 billion, down 15% from PHP13.28 billion a year earlier, on twelve-month service revenues of PHP62.89 billion (PHP63.21 billion in 2007) and EBITDA of PHP37.40 billion (PHP40.22 billion).
In the three months to 31 December 2008 Globe Telecom maintained its momentum in terms of wireless subscriber acquisitions by adding one million SIMs, to end the year with a total subscriber base of 24.7 million, up 22% from a year ago. The company said its mass market brand, TM, led the growth, accounting for 70% of the total 4.4 million net additions recorded in 2008, bringing in more than three million new TM users. In addition, Globe said the popularity of its broadband services, and in particular wireless broadband, continued apace. The operator added a net 55,000 users in the fourth quarter – more than the total for the previous three quarters combined – to close out 2008 with a broadband subscriber base of 234,000, almost double the end-2007 figure. The continued expansion of broadband and corporate data services helped offset a slowdown in wireless revenues which declined by 1% to PHP55.6 billion from the previous year’s PHP56.4 billion, while wireline revenues improved by 7% to PHP7.3 billion from PHP6.8 billion in 2007.
Add comment February 3, 2009
Jordan Telecom reports 2008 results
According to the Jordan Times, Jordan Telecom Group (JTG) grew its customer base to 2.52 million subscribers at the end of 2008, up 3.4% year-on-year. The company said the rise was mainly driven by growth from its Orange internet subscriber base, which reported 55.6% subscriber growth to 102,200. The Orange mobile customer base rose by 2.6% to 1.76 million, while the number of fixed line subscribers was up 0.5% to 663,400. The group’s net profit increased 6.1% to JOD100.3 million (USD142.7 million), while EBITDA was up 5.5% to JOD183.2 million. Revenues edged up 0.9% to JOD401.4 million, while JTG’s operating expenses before depreciation and amortisation declined by 2.7% to JOD218.2 million. Capital expenditure in 2008 amounted to JOD55.8 million, 6.7% lower than the JOD59.8 million in 2007.
Add comment February 2, 2009
BTC: profit plummets 64%
Bulgarian telecoms group BTC has posted a net profit of BGN41.7 million (USD27.4 million) for the twelve months ended 31 December 2008, down 64% year-on-year. The company’s sales amounted to BGN1 billion, on a par with the 2007 figure. The company’s costs stood at BGN957.2 million versus BGN916.6 million in 2007.
Add comment February 2, 2009
Telefonica Chile releases prelim results; cleared of monopolistic practices
Telefonica Chile has reported preliminary results for the year ended 31 January 2008 which show a 1% fall in revenues to CLP685.27 billion (USD1.14 billion). Operating profit for the twelve month period slipped by over a quarter, from CLP76.8 billion to CLP57.1 billion, while net profit rose from CLP11.82 billion to CLP17.6 billion.
In a separate but related announcement Chile’s anti-monopoly regulator, the Tribunal for the Defence of Free Competition (TDLC) said it rejected a lawsuit brought by Telmex alleging monopolistic practices by Telefonica Chile. The TDLC said it rejected the lawsuit because there was no evidence that Telefonica had taken actions meant unequivocally to impede, restrict or obstruct freedom of opportunity.
Add comment February 2, 2009
MTNL 3Q 2008 results reveals drop in net profit, revenue (India)
State-owned Indian telco Mahanagar Telecom Nigam ltd (MTNL) has reported financial results for the three months ended 31 December 2008, revealing a drop in net profit to INR583 million (USD11.9 million) from INR942 million in 2007. The fall has been attributed to the merger of 50% of dearness allowance (DA) with basic pay, leading to staffing costs increasing from INR4.33 billion to INR5.89 billion. Revenue for the operator meanwhile fell by 4.5% to INR11.3 billion. During the quarter MTNL increased its wireless subscribers by 222,079, bringing its total to 3.89 million, while customers taking broadband services from the telco rose by 42,379 to 645,784.
Add comment February 2, 2009
MobiNil announces 4Q and full year results; revenue, net profit and EBITDA all rise (Egypt)
The Egyptian Company for Mobile Services (MobiNil), Egypt’s largest mobile operator by subscribers, has announced financial results for both the three- and twelve-month periods ending 31 December 2008. MobiNil reported that, for the fourth quarter net profit rose 25% year-on year to EGP551 million (USD100.4 million), whilst revenue increased 24% over the three months to EGP2.64 billion. Earnings before interest, tax, depreciation and amortisation meanwhile surged up 57% y-o-y to EGP1.34 billion in the fourth quarter. Average revenue per user (ARPU) for the fourth quarter declined 8% however, to EGP44 per month, which the operator attributed to its increased penetration of lower revenue market segments. Similar upward trends were also reported for the twelve-month results, with net profit, revenue and EBTIDA rising 8%, 21% and 27% respectively. Global blended ARPU over the year was EGP46, a 15% decline against the 2007 figure.
Add comment February 2, 2009
USD4bn notes sale at Verizon Wireless
Verizon Wireless has sold USD4 billion notes in a two-part sale Reuters reports citing IFR. The sale includes USD500 million in three-year notes priced to yield 4.05 percentage points over US Treasuries, plus USD3.5 billion in five-year notes priced to yield 3.90 percentage points above Treasuries. The sale was lead-managed by Citigroup Global Markets, Morgan Stanley and RBS Greenwich Capital.
Add comment February 2, 2009
TDF to fund rural wireless coverage (Afghanistan)
The Afghani administration has revealed how it plans to spend the Telecom Development Fund (TDF), mainly on the expansion of wireless and landline services in underserved rural areas. According to the terms of Afghani GSM licences, cellcos are required to pay 2.5% of their net revenues into the TDF; to date the fund has accumulated around USD26 million. Five rural provinces – Badakhshan, Paktika, Zabul, Daikundi, and Nooristan – will be among the first to benefit from the fund.
Add comment January 30, 2009
DoCoMo’s nine-month profits up 16%, announces 2G shutdown March 2012
Japan’s mobile market leader by subscribers NTT DoCoMo recorded net profit for the nine months to the end of December 2008 of JPY437.7 billion (USD4.86 billion), up 16% from a year earlier, whilst operating income rose 19% year-on-year to JPY746.8 billion, despite revenues falling 4% to JPY3.38 trillion. The bottom-line improvement was partly attributed to handset sales and reduced churn. As of 31 December, the company had 54.16 million subscribers, up 220,000 from three months earlier. DoCoMo maintained its forecast for its fiscal year ending March, with a predicted net income of JPY495 billion, operating profit of JPY830 billion and JPY4.6 trillion in total sales.
DoCoMo also announced that it will terminate its 2G ‘Mova’ mobile service on 31 March 2012. At the end of 2008, around 88% of its total subscribers were on its 3G network. The remaining 6.7 million will be offered incentives to transfer from the legacy PDC (Personal Digital Communications) platform to W-CDMA/HSPA technology.
Add comment January 30, 2009
Etisalat Net Profits Grow 19% to Dhs8.7b in 2008
United Arab Emirates telco Etisalat has announced its consolidated annual net profit rose by 18.7% to AED8.7 billion (USD2.36 billion) during 2008 when compared to its 2007 net income of AED7.3 billion. Mohammed Khalfan Al Qamzi, CEO of Etisalat, said the improvement was due to an increase in subscribers at home and abroad; at the end of 2008, the company’s wireless subscriber base in the UAE increased to 7.3 million, a rise of 14% compared to the end of 2007, fixed line subscribers rose by 3% to 1.36 million and internet subscribers grew by 31% to 1.15 million. The company also reported its 2008 net revenues increased by 22% to AED26.1 billion when compared with the previous year. Chairman Mohammed Hassan Omran said ‘Acquiring new licences in Iran and India provides us with significant growth opportunities, and will support the development of our company for many years to come.’ Etisalat said it plans to invest USD1 billion in its first year of operations in Iran, after winning the country’s third mobile telephone licence in January.
However, while net profit increased when compared to the previous year, Reuters reported the telco’s fourth quarter net profit fell by 19.3% year-on-year to AED1.42 billion. Reuters calculated the quarterly data from previous financial statements, as Etisalat’s preliminary annual report did not provide quarterly breakdowns.
Add comment January 30, 2009
Mobily sees Q4 net profit grow 51% to SAR 778, beats estimates
Mobily (Etihad Etisalat), Saudi Arabia’s second largest mobile operator by subscribers, reported a 51% increase in net profit year-on-year for the fourth quarter of 2008. Net profit for the three months to 31 December 2008 was SAR778 million (USD207.5 million), while net profit for the full year was SAR2.09 billion, up from SAR1.38 billion in 2007, on the back of ‘a rise in the number of subscribers, minutes of communications and an increase in demand for broadband services,’ it said. Emirates Telecommunications Corp (Etisalat) has a 26.25% stake in Mobily.
Add comment January 30, 2009
Buyer found for Lacom (Algeria)
Orascom Telecom and Telecom Egypt have reached agreement in principle with Dubai based VTEL Holdings Ltd for the sale of Lacom. The two Egyptian companies each own 50% the second national operator (SNO), which was officially dissolved in November 2008.
The Regulatory Authority of Post and Telecommunications (ARPT) will perform an audit on Lacom before authorising its sale, paying particular attention to Lacom’s non-compliance with the obligations of its licence award. Penalties will be charged for the SNO’s inability to meet the requirement to provide national coverage with its network. The level of penalties charged is likely to be decisive in determining the sale price.
VTEL Holdings is already present in Algeria through three subsidiaries: the ISP Anwarnet, internet and SMS service provider Noornet and Watanserv, a telecoms infrastructure company.
Add comment January 30, 2009
NTT Docomo grows nine-month net income 16%
Japanese mobile operator NTT Docomo reported revenues for the nine months to December of JPY 3.38 trillion, down 4.1 percent from JPY 3.52 trillion in the year-earlier period. Service revenues fell 8.8 percent to JPY 2.79 trillion. However, operating income rose 19.5 percent to JPY 746.8 billion, and net income totalled JPY 437.7 billion, up 16.3 percent from JPY 376.5 billion in year-ago period. Docomo ended December with 54.16 million subscribers, 87.7 percent of which are Foma subscribers. Churn in third quarter improved to 0.44 percent from 0.74 percent a year earlier, reflecting the effect of the new discount programmes and handset instalment plans. Blended ARPU was JPY 5,820 in the nine-month period, versus JPY 6,470 a year earlier. For the full year, Docomo maintained its forecast of JPY 4.59 trillion in revenues, operating income of JPY 830 billion, and a net income of JPY 495 billion.
Add comment January 30, 2009
Deutsche Telekom wireless subscriber growth slows in Q4, fixed line losses
German telecoms giant Deutsche Telekom (DT) has revealed its wireless subscriber growth slowed during the fourth quarter of 2008. The company said it increased its wireless subscriber base worldwide by 1.68 million between September 2008 and the end of the year, compared to 3.76 million in the same period a year earlier. Furthermore, the company’s domestic fixed lines fell by 685,000 to 33.82 million during the fourth quarter, compared to 537,000 during the same period the previous year. Nevertheless, its broadband operations continue to grow; DT reported a rise in domestic broadband subscriptions of 238,000 during the fourth quarter, taking its subscriber base in Germany up to 13.34 million, a year-on-year increase of 6.3%.
Add comment January 29, 2009
AT&T reports varied Q4 results
AT&T has reported growth in its wireless division, but experienced further declines in the fixed line sector in the fourth quarter of 2008. The company’s overall net profit for the quarter was USD2.4 billion, down 23.6% from USD3.1 billion twelve months previously. Revenue for the three months ended 31 December 2009 was USD31.1 billion, up 2.4% year-on-year. Wireless revenue rose 13.5% to USD11.5 billion, while total wireline revenue dropped 3.3% to USD17.07 billion. The company cited merger-related expenses, severance costs and upfront subsidies for the iPhone as contributing to lower income. Large declines in AT& T’s local and long distance business also played a significant role. Although the operator takes an initial hit in handset subsidies from the 1.9 million new iPhone customers it acquired in the quarter, in the long run it should generate significant profits from the higher monthly fees paid by users.
AT&T ended the quarter with 77 million mobile customers, slightly behind new market leader Verizon’s 80 million. AT&T’s churn rate remained flat at 1.2% for post-paid subscribers and was down slightly at 1.6% overall. Post-paid ARPU was up 3.9% versus the year-earlier quarter at USD59.59. The operator signed up a net 264,000 customers for its new U-Verse fibre-TV service to reach its year-end goal of one million. It had planned to reach 30 million living units by the end of 2010, but has now revised the target date to the end of 2011. AT&T added 357,000 broadband customers in the fourth quarter, including those who buy wireless aircards. In the fixed line division the number of primary consumer lines in service fell to 27.48 million from 31.01 million a year earlier.
Full-year 2008 revenue totaled USD124.0 billion, net income was USD12.9 billion and cash from operating activities totaled USD33.7 billion. AT&T issued a conservative forecast for 2009. The company has already taken steps to counter the financial downturn and has recently shed 12,000 jobs. The company has also said it will reduce its CAPEX spending on new equipment in 2009 by between 10% and 15%.
Add comment January 29, 2009
Antel invited to partner Telecsa (Ecuador)
Uruguayan telco Antel has been invited by the Solidarity Fund of Ecuador to invest in Ecuadorian state-run cellco Telecsa (Alegro). Antel said in a statement that it wants to operate in Ecuador, where it already provides consultancy services. The company said that it would not take a majority equity stake in Telecsa, but its investment would be ‘significant’. Antel is also working as a consultancy in other Latin American countries including Venezuela, Cuba and Paraguay.
Add comment January 29, 2009
Tata Communications posts solid 3Q results; net profit, EBITDA, revenue all increase
Indian fixed line and broadband provider Tata Communications has released its financial results for the three months ended 31 December 2008, revealing a 17% increase in revenue against the same period last year. Tata’s revenue for its third fiscal quarter stood at INR9.9 billion (USD202 million), while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 43% year-on-year to INR2.3 billion. Net profit for the three-month period meanwhile was INR810 million, soaring 203% compared with the 3Q 2007. The large increase has been attributed to a one-off charge incurred by the operator in the same period last year following a revision of the its pricing arrangements. Tata has claimed however that its key operating sectors, business voice and data, have both continued to demonstrate strong growth in both revenue and operational parameters. Wholesale voice revenues for the nine months to end-December 2008 increased 73% to INR2.29 billion, while enterprise and carrier data revenue was up 23%.
Add comment January 29, 2009
USD250 million equity investment for Warid Telecom (Pakistan)
The Pakistan Observer is reporting that mobile operator Warid Telecom has received equity investment of USD250 million from its joint shareholders, the Abu Dhabi Group and SingTel. Warid, launched commercial services in May 2005, is likely to use the funds to further expand its network coverage. At the end of December 2008 the cellco claimed it had coverage in over 450 cities and 7,200 towns across the country, offering services over its GSM-based infrastructure. Tariq Gulzar, Warid’s chief financial officer said of the announcement, ‘This equity injection…demonstrates the confidence reposed by our shareholders in the company’s ability to continue to provide highest level of quality services to our valued subscribers at very affordable prices. We are going to further enhance our technical and retail network across the country to exceed the expectations of our existing and potential subscribers’.
1 comment January 29, 2009
