Clearwire adds 1.23 million subscribers in Q3

Clearwire adds 1.23 million subscribers in Q3
(Telecompaper) Clearwire has raised its annual subscriber growth target after a strong increase in customer numbers in Q3. The Wimax operator now expects around 4 million customers by year-end, up from an earlier target of 2 million. In Q3, the group added a net 1.23 million customers for a total 2.84 million at the end of September. Growth came from its wholesale customers, which added 1.1 million new users, while Clearwire’s retail base rose by 150,000 to reach 1.01 million. The Wimax network now covers 100 million people and is expected to reach 120 million by year-end. Still, around 45 percent of the wholesale subscriber base is outside network coverage and using combined 3G/Wimax plans, for which Clearwire receives nominal revenue. Wholesale ARPU was just USD 4.46 in the quarter, although Clearwire expects to receive an additional USD 17 million in revenue from wholesale partners for the quarter once it recolves certain pricing issues. Its retail ARPU came in at USD 42.74. Total revenues reached USD 147 million, more than double the USD 68.8 million a year ago. The adjusted EBITDA loss widened to USD 330.7 million, from USD 193.8 million a year ago, and the net loss was USD 139.4 million. The company improved its forecast for customer acquisition cost to the mid USD 400’s for the full year, from an earlier estimate of the low USD 500’s, and the retail ARPU forecast rises to over USD 42 from 41. Cash burn is estimated at USD 3.2-3.4 billion for the year, and Clearwire said it’s in search of new sources of financing. This includes talks with its major shareholders and third parties about potential strategic transactions, additional debt or equity financings and/or asset sales. In the mean time, the group is cutting costs and announced plans for a 15 percent reduction in staff, cuts to contractors employed, delays to smartphone launches, lower sales and marketing spend and a suspension of planned retail launches in select markets including Denver and Miami. This should result in savings of USD 100-200 million in 2010 and again in H1 2011. LTE tests, which have so far yieled speeds of 90/30Mbps, will continue into the first quarter.[Lees verder]

Telecom Italia Q3 sales down slightly, net improves
(Telecompaper) Telecom Italia reported third-quarter revenues of EUR 6.372 billion, down slightly from EUR 6.472 billion a year earlier, while EBITDA slid to EUR 2.742 billion from EUR 2.979 billion. Growth at TIM Brasil helped offset the decline at the domestic business, which saw revenues fall 7.5 percent to EUR 4.941 billion and EBITDA drop 14.1 percent to EUR 2.290 billion. Net profit improved sharply to EUR 608 million from EUR 198 million, due to losses from divestments in the year-earlier period. The result includes charges of EUR 240 million for staff reductions. Capex amounted to EUR 2.938 billion in the first nine months, little changed from a year ago, and operating cash flow fell by EUR 481 million to EUR 3.451 billion due to costs for the Sparkle case. In Italy, TIM posted revenues down 12.3 percent to EUR 3.5 billion, hurt by cuts to termination rates. The mobile operator added a net 88,000 subscribers in the quarter for a total base of 30.63 million. MOU improved to 159 from 135 a year ago, while ARPU fell to EUR 19.6 from EUR 20.7. At the fixed division, line loss stabilised at 157,000 in Q3, for a total base of 15.58 million retail lines, while retail broadband subscribers grew by 52,000 to 7.186 million. IPTV customers dipped to 391,000, and broadband ARPU was at EUR 18.6. Total wireline revenues were down 2.9 percent year-on-year to EUR 3.458 billion. Telecom Italia reiterated its outlook for the full year, for organic EBITDA broadly stable, versus a 0.8 percent slide in the first nine months. Capex is estimated at around EUR 4.3 billion for the full year, and adjusted net debt should reach EUR 32 billion by year-end, down from EUR 32.99 billion in September.[Lees verder]

Deutsche Telekom reiterates FY guidance
(Telecompaper) Deutsche Telekom reports revenues of EUR 15.6 billion for the third quarter, down 4.1 percent year-on-year. The adjusted EBITDA dropped by 9.2 percent to EUR 5.02 billion, while net profit rose 7.9 percent to EUR 1.04 billion. Free cash flow stood at EUR 1.9 billion, lower than the EUR 3.3 billion in the third quarter of 2009, when figures were influenced by the sale of receivables. Net profit after elimination of the deconsolidation effect of T-Mobile UK developed positively in the third quarter, increasing by almost 22 percent year-on-year. On this basis, total revenue grew 1.0 percent and adjusted EBITDA decreased by 6.1 percent, primarily due to higher customer acquisition costs in the US and the Netherlands. Deutsche Telekom has confirmed its guidance for the full year following a solid third quarter. Excluding the effects of the joint venture in the UK, Deutsche Telekom expects to generate adjusted EBITDA of approximately EUR 20 billion and free cash flow of at least EUR 6.2 billion. By the end of the first nine months, adjusted EBITDA amounted to EUR 14.9 billion, while free cash flow stood at EUR 4.8 billion. Deutsche Telekom is also on track in the implementation of its Group strategy. In the domestic business, the operating targets for new DSL customer market share, line losses, and Entertain products set for the year as a whole will be reached. Mobile data revenues in the group rose by 26 percent to EUR 3.2 billion. The success of the Save for Service cost-cutting program continues with savings of EUR 1.7 billion for the first nine months of this year. The group will exceed its original full-year target of EUR 2 billion in savings. The total customer base decreased by 3.6 percent year-on-year to 181.6 million, due to a 6.6 percent drop in fixed-line customers to 36.55 million and a 3.9 percent drop in mobile customers to 129 million. The number of broadband lines grew 7 percent year-on-year to 16.03 million.[Lees verder]

Clearwire adds 1.23 million subscribers in Q3
(Telecompaper) Clearwire has raised its annual subscriber growth target after a strong increase in customer numbers in Q3. The Wimax operator now expects around 4 million customers by year-end, up from an earlier target of 2 million. In Q3, the group added a net 1.23 million customers for a total 2.84 million at the end of September. Growth came from its wholesale customers, which added 1.1 million new users, while Clearwire’s retail base rose by 150,000 to reach 1.01 million. The Wimax network now covers 100 million people and is expected to reach 120 million by year-end. Still, around 45 percent of the wholesale subscriber base is outside network coverage and using combined 3G/Wimax plans, for which Clearwire receives nominal revenue. Wholesale ARPU was just USD 4.46 in the quarter, although Clearwire expects to receive an additional USD 17 million in revenue from wholesale partners for the quarter once it recolves certain pricing issues. Its retail ARPU came in at USD 42.74. Total revenues reached USD 147 million, more than double the USD 68.8 million a year ago. The adjusted EBITDA loss widened to USD 330.7 million, from USD 193.8 million a year ago, and the net loss was USD 139.4 million. The company improved its forecast for customer acquisition cost to the mid USD 400’s for the full year, from an earlier estimate of the low USD 500’s, and the retail ARPU forecast rises to over USD 42 from 41. Cash burn is estimated at USD 3.2-3.4 billion for the year, and Clearwire said it’s in search of new sources of financing. This includes talks with its major shareholders and third parties about potential strategic transactions, additional debt or equity financings and/or asset sales. In the mean time, the group is cutting costs and announced plans for a 15 percent reduction in staff, cuts to contractors employed, delays to smartphone launches, lower sales and marketing spend and a suspension of planned retail launches in select markets including Denver and Miami. This should result in savings of USD 100-200 million in 2010 and again in H1 2011. LTE tests, which have so far yieled speeds of 90/30Mbps, will continue into the first quarter.[Lees verder]

Telecom Italia Q3 sales down slightly, net improves
(Telecompaper) Telecom Italia reported third-quarter revenues of EUR 6.372 billion, down slightly from EUR 6.472 billion a year earlier, while EBITDA slid to EUR 2.742 billion from EUR 2.979 billion. Growth at TIM Brasil helped offset the decline at the domestic business, which saw revenues fall 7.5 percent to EUR 4.941 billion and EBITDA drop 14.1 percent to EUR 2.290 billion. Net profit improved sharply to EUR 608 million from EUR 198 million, due to losses from divestments in the year-earlier period. The result includes charges of EUR 240 million for staff reductions. Capex amounted to EUR 2.938 billion in the first nine months, little changed from a year ago, and operating cash flow fell by EUR 481 million to EUR 3.451 billion due to costs for the Sparkle case. In Italy, TIM posted revenues down 12.3 percent to EUR 3.5 billion, hurt by cuts to termination rates. The mobile operator added a net 88,000 subscribers in the quarter for a total base of 30.63 million. MOU improved to 159 from 135 a year ago, while ARPU fell to EUR 19.6 from EUR 20.7. At the fixed division, line loss stabilised at 157,000 in Q3, for a total base of 15.58 million retail lines, while retail broadband subscribers grew by 52,000 to 7.186 million. IPTV customers dipped to 391,000, and broadband ARPU was at EUR 18.6. Total wireline revenues were down 2.9 percent year-on-year to EUR 3.458 billion. Telecom Italia reiterated its outlook for the full year, for organic EBITDA broadly stable, versus a 0.8 percent slide in the first nine months. Capex is estimated at around EUR 4.3 billion for the full year, and adjusted net debt should reach EUR 32 billion by year-end, down from EUR 32.99 billion in September.[Lees verder]

Deutsche Telekom reiterates FY guidance
(Telecompaper) Deutsche Telekom reports revenues of EUR 15.6 billion for the third quarter, down 4.1 percent year-on-year. The adjusted EBITDA dropped by 9.2 percent to EUR 5.02 billion, while net profit rose 7.9 percent to EUR 1.04 billion. Free cash flow stood at EUR 1.9 billion, lower than the EUR 3.3 billion in the third quarter of 2009, when figures were influenced by the sale of receivables. Net profit after elimination of the deconsolidation effect of T-Mobile UK developed positively in the third quarter, increasing by almost 22 percent year-on-year. On this basis, total revenue grew 1.0 percent and adjusted EBITDA decreased by 6.1 percent, primarily due to higher customer acquisition costs in the US and the Netherlands. Deutsche Telekom has confirmed its guidance for the full year following a solid third quarter. Excluding the effects of the joint venture in the UK, Deutsche Telekom expects to generate adjusted EBITDA of approximately EUR 20 billion and free cash flow of at least EUR 6.2 billion. By the end of the first nine months, adjusted EBITDA amounted to EUR 14.9 billion, while free cash flow stood at EUR 4.8 billion. Deutsche Telekom is also on track in the implementation of its Group strategy. In the domestic business, the operating targets for new DSL customer market share, line losses, and Entertain products set for the year as a whole will be reached. Mobile data revenues in the group rose by 26 percent to EUR 3.2 billion. The success of the Save for Service cost-cutting program continues with savings of EUR 1.7 billion for the first nine months of this year. The group will exceed its original full-year target of EUR 2 billion in savings. The total customer base decreased by 3.6 percent year-on-year to 181.6 million, due to a 6.6 percent drop in fixed-line customers to 36.55 million and a 3.9 percent drop in mobile customers to 129 million. The number of broadband lines grew 7 percent year-on-year to 16.03 million.[Lees verder]

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