Telefonica Q3 profits boosted by Vivo gain

Telefonica Q3 profits boosted by Vivo gain
(Telecompaper) Telefonica reported third-quarter net profit of EUR 5.06 billion, more than double the year-earlier figure of EUR 1.88 billion due to a valuation gain from its takeover of Brazilian operator Vivo. Revenues rose 7.3 percent to EUR 15.23 billion, and OIBDA jumped 65.3 percent to EUR 9.46 billion. Results were offset by restructuring charges of EUR 202 million in Germany, as well as continued weakness on the Spanish market. Telefonica said organic growth was improving, to 2.5 percent year-on-year in the first nine months of the year compared with 2.0 percent during the first half. The number of access lines rose by 4.1 million in the quarter to 282 million at the end of September, up 4.9 percent from a year earlier. The number of mobile customers increased by 3.9 million from June to 214.9 million, with contract customers up 3 percent points from a year ago to 31 percent of the total base. Mobile broadband subscribers rose 73.4 percent year-on-year to over 19 million at the end of September, and retail fixed broadband lines showed organic growth of 10.7 percent to 16.7 million. Telefonica said fixed broadband growth improved in the last quarter, with Latin America gaining 267,000 lines, net additions in Germany 3.6 times higher than a year ago and sequential growth of 24.4 percent in Spain. The pay-TV customer base was up 7.0 percent year-on-year on an organic basis, to 2.7 million customers at the end of September, and fixed telephony lines were stable year-on-year at 41.5 million, or down 4.1 percent on an organic basis. Telefonica reported operating cash flow for the first nine months up 7.1 percent from a year ago to EUR 13.13 billion, and capex, excluding spectrum acquisitions, rose 11.1 percent to EUR 4.85 billion. The company reiterated all its financial targets for this year and through to 2012, including dividends.[Lees verder]

Cisco quarterly sales up 19%, orders soften
(Telecompaper) Cisco reported revenues of USD 10.75 billion for its fiscal first quarter to 30 October, up 19.2 percent from a year earlier. Net profit rose to USD 1.9 billion or USD 0.34 per share, from USD 1.8 billion or USD 0.30 per share. Cash flow from operations increased to USD 1.7 billion from USD 1.5 billion a year ago, and Cisco finished the quarter with total cash of USD 38.9 billion. Cisco said results were solid despite the challenging economic environment. Product orders were up 7 percent in the US and Canada, 2 percent in Europe, 32 percent in emerging markets and 18 percent in Asia Pacific, giving the company total growth of 10 percent year-on-year. Across customer groups, orders were strongest from the enterprise and commercial sectors, up respectively 16 percent and 13 percent, while service provider orders rose 8 percent and the public sector grew 6 percent. Consumer orders were unchanged year-on-year. Overall, the product book to bill ratio was less than 1, and Cisco said it saw capital spending moderate in some areas of its business. The company said it plans to “power through the short term challenges” in parts of its business, including weakness in the public sector, service provider and European business.[Lees verder]

MTN, Western Union sign mobile money tranfer deal
(Telecompaper) Middle East and African operator MTN Group and Western Union announced a commercial agreement to introduce international mobile remittance services in the 21 countries where MTN operates. The service will allow MTN subscribers to send and receive Western Union Money Transfer transactions using their MTN MobileMoney accounts. The service will first be introduced in Uganda, where MTN’s MobileMoney service already boasts over 1 million registered users. According to the World Bank, Uganda receives nearly USD500 million in remittances every year, making up 3 percent of the country’s GDP. MTN subscribers registered for MobileMoney will be able to receive Western Union Money Transfer transactions in their mobile accounts. In addition, MobileMoney users in certain countries will be able to send Western Union Money Transfer transactions directly from their mobile phones for payout at one of Western Union’s 386,000 agent locations in 200 countries and territories around the world. An MTN subscriber who receives a Western Union Money Transfer transaction in his MobileMoney account will be able to use the funds to pay bills, top-up airtime, send money domestically and internationally, or withdraw cash at MobileMoney Agents or any participating ATM. MTN’s MobileMoney service is currently available in Benin, Cameroon, Ghana, Guinea Bissau, Ivory Coast, Rwanda, South Africa and Uganda, with pilots underway in several other markets. MTN offers the service in partnership with local banks.[Lees verder]

Telkom warns H1 earnings to fall by up to 20%
(Telecompaper) South African operator Telkom warned that its earnings for the fiscal first half will be lower than in the year-earlier period. Normalised headline earnings a share (HEPS) for the six months ended 30 September are expected to be up to 20 percent lower than 280.6 cents a share a year before. A number of factors negatively impacted profits for the six months ended 30 September, including the 7.5 percent salary increases agreed with unions and ZAR 144 million in costs for workforce reduction. Telkom also spent ZAR 205 million on the launch of its mobile service 8ta. Higher fair value and exchange rate losses were incurred owing to the strengthening of the rand. and the group earned lower investment income as a result of lower cash balances. The group pointed out that it had also incurred significant one-off costs, including a ZAR 201 million impairment on its Multi-Links Nigeria business and a ZAR 60 million secondary tax on companies charge on a special dividend that was paid. HEPS, including the tax and the fair value loss on Vodacom shares in the 2010 financial year, would be between 240 percent and 260 percent higher than the loss of 160.2 percent a share incurred in the six months ended September 2009. Telkom’s results will be published on 22 November.[Lees verder]

Vodafone tipped as potential buyer of TalkTalk – report
(Telecompaper) Vodafone is being tipped as a possible buyer of UK home broadband and phone provider TalkTalk Telecom, reports the Daily Mail’s Market Watch column. Market speculation suggests that HSBC’s corporate finance team are working on a potential GBP 1.8 billion, 195 pence a share cash offer for TalkTalk. The speculation led to TalkTalk’s shares jumping 6.3 pence to 140 pence.[Lees verder]

Bharti Airtel revenues up 47% on Africa expansion
(Telecompaper) Indian operator Bharti Airtel reported revenues of INR 152.15 billion for its fiscal second quarter to 30 September, up 47 percent from a year earlier thanks to its takeover of Zain’s African operations. The latter were consolidated for the first full quarter, contributing INR 38.9 billion, while revenues in India and South Asia were up 9.2 percent from a year ago, with an EBITDA margin at 37.3 percent. Total EBITDA increased 19 percent to INR 51.21 billion. Net profit was hurt by higher financing charges for the takeover, but helped by INR 2.49 billion in forex gains. Net profit dropped 26.6 percent year-on-year to INR 16.61 billion. Net income for India and South Asia stood at INR 20.40 billion, down 9.9 percent from a year ago but up 7.1 percent from fiscal Q1. Free cash flow for the fiscal first half reached a record INR 43.34 billion, including INR 50.96 billion from India and South Asia. The net debt was at 2.93 times EBITDA at the end of the period. Airtel said it’s preparing to launch 3G services in India in the current quarter and a re-branding of its African operations to the Airtel name is “imminent”. The customer base in India and South Asia reached 147.626 million at the end of September, up 5 percent from three months earlier, while the African operations grew 10 percent over the same period to 40.082 million. Bharti also had 3.21 million customers for its broadband services and 3.899 million TV subscribers, up respectively 2 percent and 20 percent from June.[Lees verder]

Telefonica Q3 profits boosted by Vivo gain
(Telecompaper) Telefonica reported third-quarter net profit of EUR 5.06 billion, more than double the year-earlier figure of EUR 1.88 billion due to a valuation gain from its takeover of Brazilian operator Vivo. Revenues rose 7.3 percent to EUR 15.23 billion, and OIBDA jumped 65.3 percent to EUR 9.46 billion. Results were offset by restructuring charges of EUR 202 million in Germany, as well as continued weakness on the Spanish market. Telefonica said organic growth was improving, to 2.5 percent year-on-year in the first nine months of the year compared with 2.0 percent during the first half. The number of access lines rose by 4.1 million in the quarter to 282 million at the end of September, up 4.9 percent from a year earlier. The number of mobile customers increased by 3.9 million from June to 214.9 million, with contract customers up 3 percent points from a year ago to 31 percent of the total base. Mobile broadband subscribers rose 73.4 percent year-on-year to over 19 million at the end of September, and retail fixed broadband lines showed organic growth of 10.7 percent to 16.7 million. Telefonica said fixed broadband growth improved in the last quarter, with Latin America gaining 267,000 lines, net additions in Germany 3.6 times higher than a year ago and sequential growth of 24.4 percent in Spain. The pay-TV customer base was up 7.0 percent year-on-year on an organic basis, to 2.7 million customers at the end of September, and fixed telephony lines were stable year-on-year at 41.5 million, or down 4.1 percent on an organic basis. Telefonica reported operating cash flow for the first nine months up 7.1 percent from a year ago to EUR 13.13 billion, and capex, excluding spectrum acquisitions, rose 11.1 percent to EUR 4.85 billion. The company reiterated all its financial targets for this year and through to 2012, including dividends.[Lees verder]

Cisco quarterly sales up 19%, orders soften
(Telecompaper) Cisco reported revenues of USD 10.75 billion for its fiscal first quarter to 30 October, up 19.2 percent from a year earlier. Net profit rose to USD 1.9 billion or USD 0.34 per share, from USD 1.8 billion or USD 0.30 per share. Cash flow from operations increased to USD 1.7 billion from USD 1.5 billion a year ago, and Cisco finished the quarter with total cash of USD 38.9 billion. Cisco said results were solid despite the challenging economic environment. Product orders were up 7 percent in the US and Canada, 2 percent in Europe, 32 percent in emerging markets and 18 percent in Asia Pacific, giving the company total growth of 10 percent year-on-year. Across customer groups, orders were strongest from the enterprise and commercial sectors, up respectively 16 percent and 13 percent, while service provider orders rose 8 percent and the public sector grew 6 percent. Consumer orders were unchanged year-on-year. Overall, the product book to bill ratio was less than 1, and Cisco said it saw capital spending moderate in some areas of its business. The company said it plans to “power through the short term challenges” in parts of its business, including weakness in the public sector, service provider and European business.[Lees verder]

MTN, Western Union sign mobile money tranfer deal
(Telecompaper) Middle East and African operator MTN Group and Western Union announced a commercial agreement to introduce international mobile remittance services in the 21 countries where MTN operates. The service will allow MTN subscribers to send and receive Western Union Money Transfer transactions using their MTN MobileMoney accounts. The service will first be introduced in Uganda, where MTN’s MobileMoney service already boasts over 1 million registered users. According to the World Bank, Uganda receives nearly USD500 million in remittances every year, making up 3 percent of the country’s GDP. MTN subscribers registered for MobileMoney will be able to receive Western Union Money Transfer transactions in their mobile accounts. In addition, MobileMoney users in certain countries will be able to send Western Union Money Transfer transactions directly from their mobile phones for payout at one of Western Union’s 386,000 agent locations in 200 countries and territories around the world. An MTN subscriber who receives a Western Union Money Transfer transaction in his MobileMoney account will be able to use the funds to pay bills, top-up airtime, send money domestically and internationally, or withdraw cash at MobileMoney Agents or any participating ATM. MTN’s MobileMoney service is currently available in Benin, Cameroon, Ghana, Guinea Bissau, Ivory Coast, Rwanda, South Africa and Uganda, with pilots underway in several other markets. MTN offers the service in partnership with local banks.[Lees verder]

Telkom warns H1 earnings to fall by up to 20%
(Telecompaper) South African operator Telkom warned that its earnings for the fiscal first half will be lower than in the year-earlier period. Normalised headline earnings a share (HEPS) for the six months ended 30 September are expected to be up to 20 percent lower than 280.6 cents a share a year before. A number of factors negatively impacted profits for the six months ended 30 September, including the 7.5 percent salary increases agreed with unions and ZAR 144 million in costs for workforce reduction. Telkom also spent ZAR 205 million on the launch of its mobile service 8ta. Higher fair value and exchange rate losses were incurred owing to the strengthening of the rand. and the group earned lower investment income as a result of lower cash balances. The group pointed out that it had also incurred significant one-off costs, including a ZAR 201 million impairment on its Multi-Links Nigeria business and a ZAR 60 million secondary tax on companies charge on a special dividend that was paid. HEPS, including the tax and the fair value loss on Vodacom shares in the 2010 financial year, would be between 240 percent and 260 percent higher than the loss of 160.2 percent a share incurred in the six months ended September 2009. Telkom’s results will be published on 22 November.[Lees verder]

Vodafone tipped as potential buyer of TalkTalk – report
(Telecompaper) Vodafone is being tipped as a possible buyer of UK home broadband and phone provider TalkTalk Telecom, reports the Daily Mail’s Market Watch column. Market speculation suggests that HSBC’s corporate finance team are working on a potential GBP 1.8 billion, 195 pence a share cash offer for TalkTalk. The speculation led to TalkTalk’s shares jumping 6.3 pence to 140 pence.[Lees verder]

Bharti Airtel revenues up 47% on Africa expansion
(Telecompaper) Indian operator Bharti Airtel reported revenues of INR 152.15 billion for its fiscal second quarter to 30 September, up 47 percent from a year earlier thanks to its takeover of Zain’s African operations. The latter were consolidated for the first full quarter, contributing INR 38.9 billion, while revenues in India and South Asia were up 9.2 percent from a year ago, with an EBITDA margin at 37.3 percent. Total EBITDA increased 19 percent to INR 51.21 billion. Net profit was hurt by higher financing charges for the takeover, but helped by INR 2.49 billion in forex gains. Net profit dropped 26.6 percent year-on-year to INR 16.61 billion. Net income for India and South Asia stood at INR 20.40 billion, down 9.9 percent from a year ago but up 7.1 percent from fiscal Q1. Free cash flow for the fiscal first half reached a record INR 43.34 billion, including INR 50.96 billion from India and South Asia. The net debt was at 2.93 times EBITDA at the end of the period. Airtel said it’s preparing to launch 3G services in India in the current quarter and a re-branding of its African operations to the Airtel name is “imminent”. The customer base in India and South Asia reached 147.626 million at the end of September, up 5 percent from three months earlier, while the African operations grew 10 percent over the same period to 40.082 million. Bharti also had 3.21 million customers for its broadband services and 3.899 million TV subscribers, up respectively 2 percent and 20 percent from June.[Lees verder]

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