KPN Q1 results progressing in line with 2012 outlook (Netherlands)
KPN, the leading telecommunications and ICT service provider in The Netherlands, revealed its financial results for Q1 2012, with results progressing in line with the expected results for the transitional year of 2012.
As per the company report, the operator claimed that financial results were according to plan in first quarter of transition year and the EBITDA and FCF were impacted by phasing and accelerated investments in The Netherlands. Revenue growth was good with a good EBITDA margin in Germany, while operations in Belgium showed strong underlying growth.
KPN CEO, Eelco Blok said that the overall performance of the KPN Group in the first quarter of the 2012 transition year was according to plan. The implementation of the accelerated investment strategy for The Netherlands is on track, and they have made several key management appointments that will help them achieve their strategic ambitions.
In Consumer Mobile, they have made substantial improvements to their propositions and have expanded their distribution footprint. In Consumer Residential, their TV market share increased further and the implementation of the regionalization approach is starting. Results in Germany reflected revenue growth at a good EBITDA margin, while Belgium showed another strong quarter. They continued to invest in the high speed data network roll-out in Germany and Belgium and in new propositions to support growth. The roll-out of the high speed data network in Germany is on track to reach the target of 80 percent population coverage by the end of this year.
On the cost side, they continued to make progress with their FTE reduction program in The Netherlands of 4,000-5,000 FTE which they now intend to complete by the end of 2013, two years earlier than originally planned. Included in this, KPN has set a tough but achievable target for Group headquarters to reduce costs by 30-40 percent by 2013.
The current financial performance of the company is not in line with their medium to longer term ambition. The accelerated investment strategy in this transition year, combined with a focus on quality and simplification to drive customer satisfaction and reputation, will support a sustainable level of profit for The Netherlands from end-2012. Group profits and cash flow are planned to improve in the second half of 2012, driven by a better performance in their Dutch businesses. Therefore, he confirmed the 2012 outlook.
Telekom Austria places sole bid for Telekom Srbija stake
Telekom Austria Group has submitted a conditional bid in the region of US$1.13-1.35 billion for the Serbian government’s planned sale of a 51% stake in the country’s incumbent operator, Telekom Srbija. The government however has set an unconditional minimum price of US$1.99 billion for a 51% stake.
If reports are to be believed, Telekom Austria is the only bidder for the stake in the company.
Telekom Austria Group added that the offer is, amongst others, also conditional to merger control clearance in Serbia resulting in a market consolidation. In addition, this offer is subject to negotiations with the government about certain value creating conditions that will result in an expected enterprise value/adjusted EBITDA 2011 multiple of approximately 4.8x.
Additionally, the Telekom Austria Group committed to capital expenditures of US$639.76 million within a three year horizon. These investments are part of the business plan which forms the basis of the above mentioned valuation.
China Mobile full year profits rise by 3.9%
China Mobile Corp has reported its full year results. As per the results, its full year revenues rose by 7.3% to US$73.8 billion, while net profit increased by 3.9% to US$18.2 billion.
The customer base rose by 11.8% to 584 million – a rise of 61.73 million over the previous year. Of the total, 20.70 million are using 3G services.
EBITDA rose 4.5% over last year to US$36.43 billion, with EBITDA margin reaching 49.3%.
In addition, voice usage volume continued to grow. Average minutes of usage per user per month (MOU) were 521 minutes, up by 5.4% over last year. Average revenue per user per month (ARPU) was US$11.10, exhibiting a slowdown in decline.
According to the company, it will accelerate the rollout of its TD-LTE network and will still consider suitable overseas acquisitions.
MTC customer base grows to 1.53 mn in 2010 (Namibia)
MTC has revealed that it ended 2010 with a total 1.53 million active customers, an increase from 1.28 million compared to the previous year.
According to the company, revenues for the year were little changed due to the cuts in termination rates, while EBITDA improved to $785.8 million from $748 million in 2009.
Capex increased from $260 million to $410 million, almost half of which went to 3G network roll-out. The 3G investment helped data revenues grow 50% over the year, to 7.6% of total revenues by September 2010. Capex was higher than net profit for the year and a record for the company since its start.
MTC added that it was opposed to the regulator’s latest policy to cap off-net retail voice prices, stating that this is unprecedented for a regulator to intervene on retail prices. However, the company is positive on the country’s new communications law, which should allow it to gain a technology- and service-neutral licence.
Vivendi sets $9.6 bn limit for Vodafone’s SFR stake (France)
French telecommunications and entertainment conglomerate Vivendi is reportedly reluctant to pay Vodafone more than US$9.6 billion for its 44% stake in French operator SFR.
As per the analysts, at this price, SFR would be valued at US$29.1 billion, or 5.5 times its 2011 EBITDA, broadly in line with European telecom operators.
Analysts added that Vodafone investors who are seeking at least 6 times EBIDTA enterprise value for SFR, or US$9.33 billion will be disappointed with a US$9.6 billion sale price. The balance of power is skewed in Vivendi’s favor as it is the only likely buyer for the stake.
Talks between Vivendi and Vodafone also involve roaming conditions for Vodafone in France. Both groups’ CEOs have stated that in the past that they would not be forced into a deal at the wrong price.
Tele Norte Leste dangles to profit in Q4 (Brazil)
Brazilian telecommunications company, Tele Norte Leste Participacoes SA has reported a net profit of $172 million, reversing from a loss of US$360.72 million last year.
In the fourth quarter, the company reported net revenue of US$4.41 billion, decreased from US$4.58 billion in the fourth-quarter of 2009.
Earnings before interest, taxes, depreciation and amortization, (EBITDA), increased slightly to US$1.37 billion from US$1.33 billion.
Fixed-line customers fell to 20.02 million, lowered from 21.29 million in the fourth quarter of 2009. Fixed-line broadband customers rose to 4.35 million from 4.2 million and mobile customers were up to 39.3 million, from 36.1 million last year.
Zain Q4 net profit rises (Kuwait)
Kuwait’s Mobile Telecommunications Co. Zain stated that its 2010 net profit rose as the company added new subscribers and that it plans to double its net profit by 2014.
The subject of a nearly $12 billion takeover offer by U.A.E.’s biggest telecoms company Emirates Telecommunications Corp., Etisalat, said its net profit excluding a capital gain from selling its African assets rose to US$1.02 billion, compared with US$700.80 million a year earlier.
Net profit reached US$3.80 billion, including a capital gain of US$2.76 billion from the sale of Zain Africa assets on June 8, 2010.
According to Zain Group Chief Executive, Nabeel Bin Salamah, the company targets organic growth and more than doubling its net profit by 2014. To realize their business aspirations, they have devised an integrated strategy that will hopefully aid them, through organic growth, to reach 52 million customers, generate 6.3 billion in revenues, and increase earnings before interest taxes, depreciation and amortization to $3.4 billion– while improving the EBITDA margin to 53%-and more than double their net profit to $2.1 billion by 2014.
Zain stated that 2010 revenue reached US$5.03 billion, 7% increase from the year earlier. Zain added that its mobile customers stood at 37 million at the end of December, an increase of 23% from the same period a year earlier.
Bouygues Telecom posts full-year 2010 results (France)
French fixed line, broadband and mobile services provider Bouygues Telecom has announced that its sales rose 5% year-on-year to US$7.786 billion in 2010 and sales from network services increased by 4% at US$7.01 billion.
The telco added that excluding the impact of the cut in voice and SMS call termination rates, sales from network services would have climbed by 14% year-on-year.
According to Bouygues, in 2010, it successfully offset the effect of reduced call termination rate differentials and higher taxes, with EBITDA rising 2% y-o-y to US$1.88 billion, although net profit fell 6% to US$615.29 million, reflecting higher amortization charges mainly linked to commercial success in the fixed broadband segment.
Bouygues Telecom added 842,000 net new mobile contract customers in 2010, representing 23% of net market growth for the segment. The telco had a total of 11.084 million mobile customers as at 31 December 2010, 79% of them on a monthly call plan, increased by 2.5 percentage points over the year.
In addition, strong growth continued in the fixed broadband business, with 154,000 new customers signing up in the fourth quarter of 2010, and 494,000 over the year as a whole, giving the operator a total of 808,000 fixed broadband customers at the year end.
SFR full year revenue rises by 5.8% (France)
French mobile network operator, SFR – a joint venture between Vodafone and Vivendi – has reported a 1.2% rise in its full-year revenues for 2010 to US$3.57 billion. Excluding the regulated price cut impacts, revenues increased by 5.8%.
In 2010, SFR added almost 1.29 million new postpaid net adds, in particular due to the success of smartphones and offers including an Internet remote access. 28% of SFR customers were equipped with a smartphone at the end of December 2010 (compared to 15% at end of 2009) allowing a data revenue growth of 16% in 2010. At the end of 2010, SFR’s postpaid mobile customer base reached 16.095 million, improving the customer mix by 3.0 percentage point’s year-on-year to attain 75.6%.
SFR’s total mobile customer base reached 21.303 million.
SFR’s EBITDA was US$5.46 billion, a 0.2% increase compared to 2009. This growth included US$79.79 million of non- recurring (“non-cash”) items related to the termination of some of SFR’s fixed network indefeasible right of use (IRU) by third parties.
Vodafone is widely expected to sell its 44% stake in SFR in the near future to Vivendi.
