Telekom Austria profit doubles on lower revenues
The Telekom Austria Group has reported a slight decrease in revenues for 2010 but has reported doubling of its net profits.
The company’s revenues for 2010 dropped by 3.1% to US$6.34 billion while profits increased by 106% to US$266 million. Net debt also fell by 9% to US$4.5 billion.
Austria (-4%), Bulgaria (-8%) and Croatia (-5%) showed a slight decline in revenues, whereas Belarus and the Additional Markets segments (Slovenia, Republic of Serbia, Republic of Macedonia and Liechtenstein) recorded a growth of 14% and 8% respectively.
According to Hannes Ametsreiter, CEO Telekom Austria Group, for the first time in 13 years, they were able to return to fixed line customer growth. This demonstrates the effectiveness of their convergence strategy, which they are currently dedicated to implementing in their two largest markets Austria and Bulgaria.
Hannes added that against the backdrop of a challenging market environment,they have adopted the necessary measures – such as the merger of their fixed line and mobile communication operations in Austria – to realize selective growth opportunities going forward. In the years to come, they will have to tackle a number of issues with regard to regulation and competition.
However, they are confident to achieve their targets over the mid-term. The main goal is to secure the Group’s market leadership in Central and Southeastern Europe and to become the most efficient and innovative telecom operator in this region.
At year-end 2010, the Telekom Austria Group had 22 million customers across its operations in 8 countries of Central and Southeastern Europe, a market with 41 million inhabitants.
VimpelCom Quarterly Profits Rise by 14%
Russia’s VimpelCom has reported its third quarter results and revealed that its net profits increased by 14.1% to $495.9 million, while revenues were up by 24.1% to US$2.8 billion.
Net debt increased by $46 million primarily as a result of payment for the VimpelCom exclude, partially offset by cash generated by operating activities. Capex was $520.1 million and year-to-date Capex was $1.1 billion. The number of mobile subscriptions increased to 92 million, up 40.7% y-o-y; broadband subscriptions grew to 3.1 million, up 58.8% y-o-y.
Quarterly, net operating revenue increased by $182.8 million, 6.9%, mainly due to $115.4 million growth from Ukraine and $82.4 million revenue growth from Russia and the CIS.
According to VimpelCom’s Chief Executive Officer, Alexander Izosimov, the company’s increased scale and financial strength position them well to capture opportunities and strategic benefits of industry consolidation. The company recently announced agreement with Weather Investments is a significant step in this direction. Given the size and complexity of the transaction, we are satisfied with the progress made thus far. The company remains committed and continue to move forward as outlined in their October 4th announcement. The companies are working towards fulfilling all necessary conditions precedent, including obtaining approval of VimpelCom’s Supervisory Board and securing the necessary regulatory approvals and anticipate the closing in the first half of 2011.
Brazilian telco Telesp Q4 net profits down 24.7%
www.WirelessFederation.com/news: Due to the fall in the service revenues, the fourth quarter net profits of Brazilian telecoms operator Telecomunicacoes de Sao Paulo (Telesp) went down 24.7% and totaled BRL544.8 million (USD294 million).
Fourth quarter losses reached BRL51.2 million, compared with a loss of BRL43.5 million in the year-ago period. Net revenues went down from BRL4.1 billion in 4Q08 to BRL3.9 billion in 4Q09 and EBITDA dipped 6.4% year-on-year to BRL1.39 billion.
The full-year net profits of the company stood at BRL2.17 billion last year, down 10.2% y-o-y and EBITDA reached BRL5.87 billion (down 10.4%).
Strike over Telecom Italia plans
Unions at Telecom Italia have called a strike over proposals to split the firm’s fixed line and mobile businesses into two new companies.
The planned 3 October walkout and street protest comes amid fears the company’s new focus on broadband and media will result in job losses.
There are also reports that the strategy change will signal the sale of its mobile business, TIM.
About half of the 85,000-strong workforce are represented by unions.
Turnaround
Telecom Italia’s change in strategy has caused a political row, forcing an adviser to Italian Prime Minister Romano Prodi to resign.
Mr Prodi, who opposes the move, said last week that he had no prior knowledge of the firm’s decision.
Yet a leaked note by his aide, Angelo Rovati, appeared to show Mr Prodi did know of the plan.
Telecom Italia’s net profits fell 15.7% to 1.5bn euros ($1.78bn; £953m) in the first half of 2006.
The company bought its TIM mobile business in 2005 after previously selling it off in the 1990s. Experts suggest it could be worth up to 35bn euros (£23.7bn).
Selling TIM, the last Italian-owned mobile network, would mark a major turnaround for Telecom Italia, which has recently been integrating its mobile and fixed-line phone operations.
Separate reports have suggested that rival European telecoms firms including France Telecom, Deutsche Telekom, and Spain’s Telefonica – as well as US private equity firm The Carlyle Group – could be interested in buying TIM.
Telecom Italia is Italy’s largest phone company, holding almost 70% of the market, and is the leading mobile operator in Brazil as well as Italy.
It also has broadband interests in Italy, France, Germany and the Netherlands and owns a number of media interests including Telecom Italia Media – which owns MTV Italia, a news agency and TV channel La7.
Source- http://news.bbc.co.uk
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