Telenor raises FY outlook to 5% organic sales growth

Telenor raises FY outlook to 5% organic sales growth
(Telecompaper) Telenor has again improved its full-year outlook after a solid set of third-quarter results. The company now expects organic revenue growth of 5 percent for the full year, versus a previous estimate of 3-5 percent. Organic growth was 6 percent in the third quarter and 5 percent for the first nine months. Telenor forecast an annual adjusted EBITDA margin of 31 percent, up from its previous estimate of 28 percent; for the first nine months of 2010, the result was 31.5 percent. The company cut its annual capex outlook to 12 percent of sales from 12-13 percent, after capex of just 10.8 percent of sales or NOK 7.57 billion in the nine months to September. The outlook takes account of the planned sale of EDB. Total revenues for the third quarter rose to NOK 24.1 billion from NOK 22.8 billion a year ago, led by strong subscriber growth at the Asian operations. Adjusted EBITDA fell to NOK 7.9 billion from NOK 8.2 billion amid heavy losses at Uninor in India and weakness in Eastern Europe, and net profit dropped to NOK 1.7 billion from NOK 3.5 billion a year earlier. Telenor expects that Uninor will contribute an EBITDA loss of around NOK 4.5 billion and capital expenditure in the range of NOK 1.5–2.0 billion over the full year, below its previous forecasts for a loss of NOK 4.5-5.0 billion and capex of NOK 2.0-2.5 billion.[Lees verder]

ZTE signs purchase agreements with US vendors for USD 3 bln
(Telecompaper) Chinese equipment maker ZTE has signed purchase agreements with five US technology vendors at a total value of USD 3 billion. Under these agreements, ZTE will purchase semiconductor components from Qualcomm, Texas Instruments, Freescale Semiconductor, Altera and Broadcom over the next three years.[Lees verder]

KPN Q3 better than expected as sales rise 1.4%
(Telecompaper) Dutch operator KPN’s third-quarter sales rose 1.4 percent to EUR 3.378 billion while the EBITDA improved 5.9 percent to EUR 1.408 billion, and the net profit increased 2.8 percent to EUR 406 million from 395 million the year before. Excluding the disposals of SNT Belgium & Netherlands, the B2B and carrier business in Belgium and parts of Getronics, revenue was estimated up 2 percent. Capex in Q3 was at EUR 431 million, while free cash flow fell 18 percent to EUR 681 million. With a year-to-date EBITDA of EUR 232 million for the Group, KPN said it was on track to reach its EUR 5.5 billion target for the full year. KPN reiterated its outlook for 2010 and 2011, and said 2011 will provide the platform for the company to move forward under the leadership of Eelco Blok. In the Netherlands, quarterly sales for all units rose 1.9 percent year-on-year to EUR 2.333 billion, with EBITDA up 3.4 percen to EUR 1.408 billion. The Dutch Telco business saw revenues slide 1.3 percent. At Getronics, sales fell 2.3 percent while at iBasis, revenue rose 38 percent. Getronics revenues showed an improving trend but economic conditions and competition remained challenging. Mobile International sales advanced 4.1 percent, boosted by revenue growth in Germany and the Rest of the World, and including a severe negative impact from MTR reductions in Belgium of EUR 11 million. EBITDA at Mobile International rose 11 percent, with all segments contributing. Results came in above market expectations, except for the net profit which was negatively influenced by rising interest rates.[Lees verder]

Telenor raises FY outlook to 5% organic sales growth
(Telecompaper) Telenor has again improved its full-year outlook after a solid set of third-quarter results. The company now expects organic revenue growth of 5 percent for the full year, versus a previous estimate of 3-5 percent. Organic growth was 6 percent in the third quarter and 5 percent for the first nine months. Telenor forecast an annual adjusted EBITDA margin of 31 percent, up from its previous estimate of 28 percent; for the first nine months of 2010, the result was 31.5 percent. The company cut its annual capex outlook to 12 percent of sales from 12-13 percent, after capex of just 10.8 percent of sales or NOK 7.57 billion in the nine months to September. The outlook takes account of the planned sale of EDB. Total revenues for the third quarter rose to NOK 24.1 billion from NOK 22.8 billion a year ago, led by strong subscriber growth at the Asian operations. Adjusted EBITDA fell to NOK 7.9 billion from NOK 8.2 billion amid heavy losses at Uninor in India and weakness in Eastern Europe, and net profit dropped to NOK 1.7 billion from NOK 3.5 billion a year earlier. Telenor expects that Uninor will contribute an EBITDA loss of around NOK 4.5 billion and capital expenditure in the range of NOK 1.5–2.0 billion over the full year, below its previous forecasts for a loss of NOK 4.5-5.0 billion and capex of NOK 2.0-2.5 billion.[Lees verder]

ZTE signs purchase agreements with US vendors for USD 3 bln
(Telecompaper) Chinese equipment maker ZTE has signed purchase agreements with five US technology vendors at a total value of USD 3 billion. Under these agreements, ZTE will purchase semiconductor components from Qualcomm, Texas Instruments, Freescale Semiconductor, Altera and Broadcom over the next three years.[Lees verder]

KPN Q3 better than expected as sales rise 1.4%
(Telecompaper) Dutch operator KPN’s third-quarter sales rose 1.4 percent to EUR 3.378 billion while the EBITDA improved 5.9 percent to EUR 1.408 billion, and the net profit increased 2.8 percent to EUR 406 million from 395 million the year before. Excluding the disposals of SNT Belgium & Netherlands, the B2B and carrier business in Belgium and parts of Getronics, revenue was estimated up 2 percent. Capex in Q3 was at EUR 431 million, while free cash flow fell 18 percent to EUR 681 million. With a year-to-date EBITDA of EUR 232 million for the Group, KPN said it was on track to reach its EUR 5.5 billion target for the full year. KPN reiterated its outlook for 2010 and 2011, and said 2011 will provide the platform for the company to move forward under the leadership of Eelco Blok. In the Netherlands, quarterly sales for all units rose 1.9 percent year-on-year to EUR 2.333 billion, with EBITDA up 3.4 percen to EUR 1.408 billion. The Dutch Telco business saw revenues slide 1.3 percent. At Getronics, sales fell 2.3 percent while at iBasis, revenue rose 38 percent. Getronics revenues showed an improving trend but economic conditions and competition remained challenging. Mobile International sales advanced 4.1 percent, boosted by revenue growth in Germany and the Rest of the World, and including a severe negative impact from MTR reductions in Belgium of EUR 11 million. EBITDA at Mobile International rose 11 percent, with all segments contributing. Results came in above market expectations, except for the net profit which was negatively influenced by rising interest rates.[Lees verder]