Safaricom announces 10 percent raise in dividend (Kenya)
Safaricom Ltd. has raised its dividend by 10 percent after full year profit beat analyst estimates, causing the share price to climb 3 percent to $0.5. Chief Executive Officer Bob Collymore, said that net income fell 4 percent to $151 million, in the 12 months through March.
Collymore told BN in an interview that profit declined as a result of unrealized foreign-exchange losses amounting to $13.05 million and an increase in interest payments by $7.12 million. Sales rose 13 percent to $1.27 billion, as the number of customers increased 11 percent to 19 million.
As per the report, the company increased call charges on Oct. 1 for the first time in 11 years amid a weakening currency and rising inflation in East Africa’s biggest economy. Rates increased an average of $0.01 per minute after the company reported a 47 percent plunge in first-half profit amid a price war with competitors.
Collymore added that business improved in the second half as increased tariffs boosted voice revenue and the shilling recovered against the dollar after hitting a record low.
Talking about the future profit growth, Collymore said that both data penetration and usage in Kenya are still low and the company will boost that by providing more affordable smartphones to its customers.
The company plans capital expenditure of $250 million in the financial year ending March 2013, with most of that being spent on its fiber-optic network, Collymore revealed in the interview. Investment last year was $300 million.
Safaricom aims to reduce capex to 20 percent of sales from about 24 percent now, Collymore said, without giving a timeframe.
Bakrie Telecom plans to raise $82 million via rights issue (Indonesia)
Anindya Bakrie, CEO of Indonesia’s telecom operator, PT Bakrie Telecom has announced plans for raising funds via rights issue this year. According to a report by Reuters, PT Bakrie Telecom, plans to issue 2.8 billion shares in a rights issue this year to raise $82 million.
The CEO revealed that the firm plans to use the funds to pay bonds due this year and for capital expenditure. Bakrie Telecom’s shares were down 3.9 percent by the midsession close, versus a Jakarta index down 0.4 percent.
Globe signs $90 million loan agreement with China Bank (Phillipines)
Telecommunications company Globe Telecom has signed a 10-year long-term loan agreement with China Banking Corporation worth US$ 90 million. According to company reports, the loan will help the company carry out the capital expenditure for this year focused towards modernizing its network and technology in an attempt to improve voice and data services.
Further, the company also announced plans of a $790-million network modernization program in the next five years, of which it reportedly plans to spend $640 million in 2012 and 2013. The company has reportedly claimed that this is the first loan agreement signed by the operator this year and that it carries a floating rate of interest.
Globe Telecom’s broadband subscribers exceed 1 million in September (Philippines)
Philippines’ second-largest telecommunications company , Globe Telecom Inc., has revealed that the number of its broadband subscribers at the end of September nearly doubled from a year earlier to 1.01 million. Globe Telecom had total broadband subscribers of 517,355 at the end of September last year.
According to Globe President and Chief Executive, Ernest Cu, the company is happy to hit the 1 million milestone for broadband users, and expect the growth trajectory to continue by year-end. Globe Telecom aims to be the preferred provider by more subscribers as they introduce new products and improve the surfing experience of customers.
In the first half, Globe Telecom spent $120 million of its $500 million capital expenditure for this year to expand its broadband network.
Claro Argentina plans investment of USD800m in 2010
www.WirelessFederation.com/news: An investment of around USD800 million has been planned by Argentina’s leading mobile operator by subscribers, Claro. Claro’s total capital expenditure last year was around USD700 million.
Company’s third-generation and fibre-optic networks will receive roughly 70% of the CAPEX, in order to support increasing demand for advanced services.
According to Claro’s president, Carlos Zenteno, 3G subscribers comprise around 20% of Claro’s approximately 17 million wireless customers, while the 3G network reaches 450 cities, covering 80% of the population.
Globe Telecom Q4 profit rises 8.5%
www.WirelessFederation.com/news: The fourth-quarter net profit of Globe telecom increased 8.5% from a year earlier. The net profit for the three months ended December 31 rose to PHP2.72 billion ($58.6 million) from PHP2.50 billion a year earlier, pushing full-year profit 11% higher to PHP12.57 billion from PHP11.28 billion.
The net profit of the Philippines’ second-largest telecommunications group by sales got a major boost from its broadband and fixed-line data businesses and had made company to allocate more than half of this year’s $500 million capital expenditure to these fast-growing services.
According to Ernest Cu, president and chief executive of Globe, as the company set forth to its path to acquiring quality subscribers and focusing on delivery of premium customer experience in 2009, it is now in a better position to push further the gains in its broadband and corporate fixed-line data businesses while driving growth in its mobile business
