KPN revenues fall 1.8% in Q2, profits up

KPN revenues fall 1.8% in Q2, profits up
(Telecompaper) Dutch operator KPN reported second-quarter sales of EUR 3.348 billion, down 1.8 percent from a year earlier. EBITDA improved 4.8 percent to EUR 1.386 billion, and the net profit rose to EUR 465 million from from EUR 370 million a year ago. Capex in Q2 was roughly stable year-on-year at EUR 380 million, while free cash flow dipped 4.3 percent to EUR 707 million. KPN reiterated its outlook for 2010 and 2011, saying its on track for stable revenues this year and will continue to focus on costs, customer value and market share in the Netherlands. The company will pay an interim dividend of EUR 0.27 per share, on the way to 80 cents for the full year. In its home market, quarterly sales fell 2.3 percent year-on-year to EUR 2.393 billion. Consumer sales dropped 5 percent to EUR 990 million, business revenues fell 4.3 percent to EUR 604 million, and wholesale and operations revenue declined 2.8 percent to EUR 704 million. The IT services arm Getronics faced a difficult market and saw sales fall 10 percent to EUR 479 million, while international wholesale carrier iBasis improved sales 34 percent to EUR 237 million. EBITDA at the Dutch division rose to EUR 970 million from EUR 937 million, while the margin improved to 52.2 percent from 50.2. The lower cost base there was helped by another 1,000 job cuts in the quarter and over 2,000 since the start of the year. The International division showed even stronger EBITDA growth of 7.9 percent to EUR 422 million, and revenues up 1.4 percent to EUR 1.038 billion. KPN said it completed the upgrade to VDSL, and since April, 80 percent of homes can receive its IPTV service. The fibre-to-the curb startegy will not go forward, with FTTH the favoured long-term option. At the end of Q2, its fibre venture with Reggefiber had 288,000 homes passed, of which 26,000 were activated. KPN also said it plans to introduce new data plans in the second half, which will better support investments in expanding its mobile network.[Lees verder]

Jazztel turns to net profit in Q2, revenues up 40%
(Telecompaper) Spanish broadband communications provider Jazztel increased its revenues by 40 percent to EUR 149.5 million in the second quarter, versus EUR 106.6 million in the year-earlier period. Retail revenues jumped 51 percent year-on-year, including voice revenues up 37 percent to EUR 26.8 million, and internet and data up 55 percent to EUR 86.3 million. Jazztel reported EBITDA of EUR 21.1 million, compared to EUR 7.2 million in the second quarter of 2009. The operator turned to a net profit of EUR 0.8 million in the second quarter, versus a net loss of EUR 16.1 million in the year-earlier period. General, sales and administrative expenses increased by 25 percent over the same period of the previous year, standing at EUR 61.4 million. The company added 76,054 new ADSL clients during the quarter, up by 59 percent year-on-year, to 756,858 users at 30 June. The active ADSL customer base grew by 77,926 new subscribers in the quarter, to 740,926 users at end-June, supporting the company’s target of 820,000-840,000 users for 2010. The number of customers with single bill services jumped by 82,576 subscribers in the second quarter to 768,232 lines. Jazztel added 1,734 corporate customers in the second quarter, reaching a total base of 29,832 business clients at 30 June. The mobile voice customer base stood at 42,893 users at the end of the second quarter, up from 40,670 in March.[Lees verder]

Imagine confirms purchase of Clearwire Ireland
(Telecompaper) Irish WiMAX phone and broadband provider Imagine Communications Group has confirmed the acquisition of Clearwire’s Irish business. Following this deal, Imagine now has almost 400 high sites nationwide to facilitate the roll-out of its WiMAX network. Imagine gained 50 MHz of spectrum when purchasing Irish Broadband in 2008, added more spectrum in a Comreg process in 2009, and with Clearwire Ireland’s spectrum now has over 120 MHz of 3.4/3.6 GHz spectrum. As part of the transaction, Clearwire will become a minority shareholder and will nominate a representative to Imagine’s board of directors. Other specific financial terms of the transaction were not disclosed.[Lees verder]

Pace to acquire 2Wire for USD 475 mln
(Telecompaper) Digital TV technologies developer Pace announced the proposed acquisition of broadband services provider 2Wire for USD 475 million cash. The acquisition price includes 2Wire’s balance sheet cash at closing, anticipated to be approximately USD 55 million. 2Wire is currently owned by a consortium including Alcatel-Lucent, AT&T, Telmex, and Oak Investment Partners. Pace plans to finance the 2Wire acquisition from existing cash resources, together with new bank facilities. The new bank facilities are currently under negotiation and the acquisition is conditional upon final agreement being reached on the terms of these facilities. Via the 2Wire acquisition, Pace plans to enhance its position in cable and satellite markets in the US with entry into the telco market. Additionally, 2Wire’s software and gateway expertise will support Pace’s development of its home entertainment convergence strategy. The transaction is scheduled for completion in the fourth quarter of the current financial year.[Lees verder]

Orange, Canal Plus negotiating 50/50 pay TV venture – report
(Telecompaper) France Telecom is in talks with Canal Plus that could lead to a merger of TPS Star and at least one of the channels of the Orange Cinema Series subscription package, write Le Figaro and La Tribune without citing sources. Reuters reports that France Telecom refused to comment and that nobody was available at Canal Plus to confirm the information. According to Le Figaro and La Tribune, the new entity would be a 50/50 joint venture offering a credible alternative to Canal Plus. From a competition standpoint, such a move would allow Orange Cinema Series to become available to consumers other than France Telecom’s IPTV subscribers and would enable pay DTT and satellite channel TPS Star to strengthen its position versus Canal Plus. Two years after launch, Orange Cinema Series has attracted 480,000 subscribers and is said to be valued at over EUR 200 million. As previously reported, France Telecom CEO Stephane Richard recently stated that the company was looking for investors in its TV channels.[Lees verder]

Tele2 starts cable TV offer in Netherlands
(Telecompaper) Tele2 Netherlands announced the launch of its analogue TV service, based on the wholesale offer from cable operators Ziggo and UPC. A standalone TV package will cost EUR 15 at Tele2, versus EUR 16.45 at Ziggo for its basic package and EUR 16.80 at UPC Netherlands. Cable TV with internet and voice will cost an extra EUR 10 per month, on top of the basic subscription of EUR 29.95 for broadband and fixed-line service. Customers can get the triple-play package for a promotional EUR 24.95 per month for the first three months. With the operator’s existing triple-play package, cable TV costs an extra EUR 5 per month, for a total EUR 44.95. This package is also available at a promotional rate of EUR 29.95 per month.[Lees verder]

KDDI’s net income slumps 17% in Q1
(Telecompaper) Japanese communications firm KDDI saw its net income slip by 17 percent in the first quarter ended 30 June while revenues inched up by less than 2 percent. Operating revenues were JPY 866 billion, up 1.4 percent from JPY 853.7 billion in the year-ago quarter. Operating income fell 8.8 percent to JPY 129.3 billion and ordinary income dropped 11.5 percent to JPY 122.6 billion. KDDI recorded a net income of JPY 71.9 billion, down 16.8 percent from JPY 86.4 billion in the first quarter a year earlier. EBITDA totalled JPY 236.6 billion, down by 6.2 percent year-on-year. Capex stood at JPY 110.4 billion, down 18.3 percent.[Lees verder]

KPN revenues fall 1.8% in Q2, profits up
(Telecompaper) Dutch operator KPN reported second-quarter sales of EUR 3.348 billion, down 1.8 percent from a year earlier. EBITDA improved 4.8 percent to EUR 1.386 billion, and the net profit rose to EUR 465 million from from EUR 370 million a year ago. Capex in Q2 was roughly stable year-on-year at EUR 380 million, while free cash flow dipped 4.3 percent to EUR 707 million. KPN reiterated its outlook for 2010 and 2011, saying its on track for stable revenues this year and will continue to focus on costs, customer value and market share in the Netherlands. The company will pay an interim dividend of EUR 0.27 per share, on the way to 80 cents for the full year. In its home market, quarterly sales fell 2.3 percent year-on-year to EUR 2.393 billion. Consumer sales dropped 5 percent to EUR 990 million, business revenues fell 4.3 percent to EUR 604 million, and wholesale and operations revenue declined 2.8 percent to EUR 704 million. The IT services arm Getronics faced a difficult market and saw sales fall 10 percent to EUR 479 million, while international wholesale carrier iBasis improved sales 34 percent to EUR 237 million. EBITDA at the Dutch division rose to EUR 970 million from EUR 937 million, while the margin improved to 52.2 percent from 50.2. The lower cost base there was helped by another 1,000 job cuts in the quarter and over 2,000 since the start of the year. The International division showed even stronger EBITDA growth of 7.9 percent to EUR 422 million, and revenues up 1.4 percent to EUR 1.038 billion. KPN said it completed the upgrade to VDSL, and since April, 80 percent of homes can receive its IPTV service. The fibre-to-the curb startegy will not go forward, with FTTH the favoured long-term option. At the end of Q2, its fibre venture with Reggefiber had 288,000 homes passed, of which 26,000 were activated. KPN also said it plans to introduce new data plans in the second half, which will better support investments in expanding its mobile network.[Lees verder]

Jazztel turns to net profit in Q2, revenues up 40%
(Telecompaper) Spanish broadband communications provider Jazztel increased its revenues by 40 percent to EUR 149.5 million in the second quarter, versus EUR 106.6 million in the year-earlier period. Retail revenues jumped 51 percent year-on-year, including voice revenues up 37 percent to EUR 26.8 million, and internet and data up 55 percent to EUR 86.3 million. Jazztel reported EBITDA of EUR 21.1 million, compared to EUR 7.2 million in the second quarter of 2009. The operator turned to a net profit of EUR 0.8 million in the second quarter, versus a net loss of EUR 16.1 million in the year-earlier period. General, sales and administrative expenses increased by 25 percent over the same period of the previous year, standing at EUR 61.4 million. The company added 76,054 new ADSL clients during the quarter, up by 59 percent year-on-year, to 756,858 users at 30 June. The active ADSL customer base grew by 77,926 new subscribers in the quarter, to 740,926 users at end-June, supporting the company’s target of 820,000-840,000 users for 2010. The number of customers with single bill services jumped by 82,576 subscribers in the second quarter to 768,232 lines. Jazztel added 1,734 corporate customers in the second quarter, reaching a total base of 29,832 business clients at 30 June. The mobile voice customer base stood at 42,893 users at the end of the second quarter, up from 40,670 in March.[Lees verder]

Imagine confirms purchase of Clearwire Ireland
(Telecompaper) Irish WiMAX phone and broadband provider Imagine Communications Group has confirmed the acquisition of Clearwire’s Irish business. Following this deal, Imagine now has almost 400 high sites nationwide to facilitate the roll-out of its WiMAX network. Imagine gained 50 MHz of spectrum when purchasing Irish Broadband in 2008, added more spectrum in a Comreg process in 2009, and with Clearwire Ireland’s spectrum now has over 120 MHz of 3.4/3.6 GHz spectrum. As part of the transaction, Clearwire will become a minority shareholder and will nominate a representative to Imagine’s board of directors. Other specific financial terms of the transaction were not disclosed.[Lees verder]

Pace to acquire 2Wire for USD 475 mln
(Telecompaper) Digital TV technologies developer Pace announced the proposed acquisition of broadband services provider 2Wire for USD 475 million cash. The acquisition price includes 2Wire’s balance sheet cash at closing, anticipated to be approximately USD 55 million. 2Wire is currently owned by a consortium including Alcatel-Lucent, AT&T, Telmex, and Oak Investment Partners. Pace plans to finance the 2Wire acquisition from existing cash resources, together with new bank facilities. The new bank facilities are currently under negotiation and the acquisition is conditional upon final agreement being reached on the terms of these facilities. Via the 2Wire acquisition, Pace plans to enhance its position in cable and satellite markets in the US with entry into the telco market. Additionally, 2Wire’s software and gateway expertise will support Pace’s development of its home entertainment convergence strategy. The transaction is scheduled for completion in the fourth quarter of the current financial year.[Lees verder]

Orange, Canal Plus negotiating 50/50 pay TV venture – report
(Telecompaper) France Telecom is in talks with Canal Plus that could lead to a merger of TPS Star and at least one of the channels of the Orange Cinema Series subscription package, write Le Figaro and La Tribune without citing sources. Reuters reports that France Telecom refused to comment and that nobody was available at Canal Plus to confirm the information. According to Le Figaro and La Tribune, the new entity would be a 50/50 joint venture offering a credible alternative to Canal Plus. From a competition standpoint, such a move would allow Orange Cinema Series to become available to consumers other than France Telecom’s IPTV subscribers and would enable pay DTT and satellite channel TPS Star to strengthen its position versus Canal Plus. Two years after launch, Orange Cinema Series has attracted 480,000 subscribers and is said to be valued at over EUR 200 million. As previously reported, France Telecom CEO Stephane Richard recently stated that the company was looking for investors in its TV channels.[Lees verder]

Tele2 starts cable TV offer in Netherlands
(Telecompaper) Tele2 Netherlands announced the launch of its analogue TV service, based on the wholesale offer from cable operators Ziggo and UPC. A standalone TV package will cost EUR 15 at Tele2, versus EUR 16.45 at Ziggo for its basic package and EUR 16.80 at UPC Netherlands. Cable TV with internet and voice will cost an extra EUR 10 per month, on top of the basic subscription of EUR 29.95 for broadband and fixed-line service. Customers can get the triple-play package for a promotional EUR 24.95 per month for the first three months. With the operator’s existing triple-play package, cable TV costs an extra EUR 5 per month, for a total EUR 44.95. This package is also available at a promotional rate of EUR 29.95 per month.[Lees verder]

KDDI’s net income slumps 17% in Q1
(Telecompaper) Japanese communications firm KDDI saw its net income slip by 17 percent in the first quarter ended 30 June while revenues inched up by less than 2 percent. Operating revenues were JPY 866 billion, up 1.4 percent from JPY 853.7 billion in the year-ago quarter. Operating income fell 8.8 percent to JPY 129.3 billion and ordinary income dropped 11.5 percent to JPY 122.6 billion. KDDI recorded a net income of JPY 71.9 billion, down 16.8 percent from JPY 86.4 billion in the first quarter a year earlier. EBITDA totalled JPY 236.6 billion, down by 6.2 percent year-on-year. Capex stood at JPY 110.4 billion, down 18.3 percent.[Lees verder]