Q1 2010 – Zain revenue up 11% & subscribers up 28%.
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Total Managed Active Customers
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31.4 million up 28% on Q1, 2009
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Consolidated Revenues
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KWD 329.7 million (US$1.146 billion)
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EBITDA
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KWD 139.2 million (US$ 483.7 million)
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EBIT
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KWD 99.4 million (US$ 345.6 million)
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Net Income
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KWD 51.5 million (US$ 179.1 million)
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EPS
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KWD 0.013 (US$ 0.05)
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African telco MTN’s CEO to depart by March 11
www.WirelessFederation.com/news: CEO Phuthuma Nhleko of MTN Group will not review his long-term contract of employment, which ends on June 30. He will continue in his current role up to March 2011.
Certain key objectives will be focused by Nhleko in the remaining part of his service including facilitation of a seamless transition once his successor has been appointed.
According to Nhleko, it was the right time to secure the next generation of leadership for the group and for him to start thinking about the next phase of his career.
Verizon CEO’s pay drops by 14% amidst layoffs
www.WirelessFederation.com/news: Due to the decline of the company’s fixed-line phone business, the compensation of Verizon Communications Inc.’ CEO Ivan Seidenberg has decreased by 14 percent in 2009. The fall in the salary came amidst layoffs carried out in the company.
Compensation valued at $17.5 million had been received by Seidenberg down from $20.2 million the year before. The decline in the value of performance stock units from $13.1 million a year ago to $11.1 million also came as a biggest hit to his pay.
Tele2 CEO to leave the company
www.WirelessFederation.com/news: Due to irreconcilable differences over leadership, CEO Harri Koponen will leave Tele2. CFO Lars Nilsson has been appointed by the board of directors as the interim CEO.
A maximum notice period of 18 months will be received by him during which he will be paid. The board will immediately begin the search for a successor CEO.
In August 2008, Koponen joined Tele2 as president and CEO and oversaw a period of increased focus on profitability.
Lombard steps down as France Telecom’s CEO
www.WirelessFederation.com/news: The board of directors of France Telecom will be asked by its Chairman and CEO Didier Lombard to February 24 to separate the functions of chairman and CEO from 1 March. The position of the Chairman will be kept by Lombard with responsibility for the definition of group strategy and technological operations.
Stephane Richard, the current CEO delegate will become CEO, with management responsibility for group operations. New industrial projects and the new social contract with the workforce, set to be presented in the next few weeks will be looked after by Richard.
Initially, Lombard was due to leave France Telecom in the spring of 2011 but his internal position and public image were compromised by a wave of employee suicides last year.
Bharti Airtel considering bid for Millicom SL
Bharti Airtel CEO, Manoj Kohli told reporters in India that Airtel may bid for Millicom’s Sri Lankan operation. Bharti already operates in SL.
Wireless Federation had earlier reported that Millicom/Tigo Laos has been sold to Russia’s Vimpelcom.
Bharti is actively considering acquisitions in Africa and the world over after the talks with MTN collapsed.
Bharti group CEO Sunil Mittal has said that the company won’t engage in dialogue with MTN for a third time, after inconclusive talks twice.
Nasdaq-listed Millicom provides prepaid cellular telephony services to over 30 million customers in 16 emerging markets in Latin America, Africa and Asia.
Asked if Bharti Airtel was also interested in Kuwait’s Zain Telecom, Kohli said they will continue to explore international acquisitions. (Airtel-Zain, See Here)
MTN and Bharti now rivals in a bid for Zain.
What was to be a merger is now likely to turn into a battle to acquire Zain. Reliable sources have revealed that a dialogue between Airtel and Zain has now been initiated via intermediaries. With this Bharti will now take on MTN in a bid to acquire Zain.
Last month, MTN CEO Phutuma Nhleko had stated that it would consider buying the African assets of Zain Telecom if the deal with Bharti did not go through.
Bharti Airtel is trying its hardest best to get a foothold in Africa, which is where the growth story is playing out as well.
Zain is considered a valuable asset because it has over 69 million customers and operations in 24 countries across West Asia and Africa, and a market capitalisation in excess of $19 billion. In Africa alone, it has 41 million customers and is the number one mobile operator in 12 of the 16 countries it operates in. As a comparison, MTN has over 103 million customers and operates in 21 countries.
Nortel to offload its GSM Business
Nortel announced on wednesday that it is planning to sell off its GSM and GSM-R (GSM for railways) assets via an open auction process due to be held on November 9, 2009. The transaction will include GSM related patents and non-exclusive licenses to other relevant patents.
Subject to approval of the bidding procedures filed with the US and Canadian courts, qualifying bidders will need to submit offers for the assets by November 5, 2009.
Earlier in September, Avaya emerged as the winning bidder for Nortel’s corporate communications unit, with an offer of close to a billion dollars.
Earlier in August, the CEO and president of Nortel, Mike Zafirovski had announced his resignation effective immediately.
David Moffatt is leaving Telstra
Telstra’s Group MD-Consumer Marketing, David Moffatt is to leave the company. Telstra claims he will remain in his position for six months or until a successor is found.
Moffatt started at Telstra as CFO and Group MD for Finance and Admin in 2001 and later became Group MD – Consumer Mktg in 2003.
He moved to his current position in October 2003, taking responsibility for Telstra’s mobile and fixed-line communications, broadband and entertainment services, and managing the Telstra Shop chain.
Moffatt was responsible for bringing GE Capital, into Australia and New Zealand as CEO. He later became CEO of GE’s Australian and New Zealand business.
Vimpelcom building a solid South East Asian Cluster – Boris Nemsic, CEO Vimpelcom.
VimpelCom will pay about $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd. The remaining 22% of Millicom Lao Co., Ltd. is owned by the Government of the Lao PDR.
VimpelCom’s CEO Boris Nemsic describes the deal as, “the next logical step in our international expansion strategy” and one that “fits perfectly into our strategy of building a solid Southeast Asian cluster.”
VimpelCom already has mobile operations in Vietnam and Cambodia, having launched services in both markets in July 2008. It holds a 40 percent stake in a JV established with state-owned GTEL in Vietnam. In Cambodia, it owns 90 percent of Sotelco.
Laos has a population of 6.5 million people and low mobile penetration estimated at around 23%, thus making it attractive for Vimpelcom and an obvious choice for acquisition.
