Telekom Austria has blamed a fall in earnings for the three months ending June on a mixture of competition, challenging economic conditions and unfavorable regulation.
The Austrian telecoms incumbent saw earnings before interest, tax, depreciation and amortization (EBITDA) fall by 9.5%, compared with the same period of 2012, to €330.3 million ($439 million), while revenues slipped by 1.9%, to €1.04 billion.
Thanks to a fall in depreciation and amortization charges, plus lower interest payments, the operator was able to report a 54.2% rise in net income, to €52.5 million.
Mexican billionaire Carlos Slim's America Movil defied arch-rival Telefonica with a 7.2 billion euro ($9.6 billion) bid for the 70 percent of Dutch telecoms group KPN that it does not already own.
Spain's Telefonica (Madrid) made an $11 billion offer last month to buy KPN's (The Hague, Netherlands) crown jewel, Germany's E-Plus, disrupting America Movil's (Mexico City, Mexico) expensive - and on paper money-losing - foray into Europe.
The global TMT Finance & Investment series of conferences makes its debut in Warsaw on September 25, 2013. Find out who will lead the next wave of growth and investment across the region.
Swiss incumbent Swisscom has reported a 9.7% fall in profits for the first half of 2013 due to a combination of rising subscriber acquisition costs and higher network maintenance expenses.
The operator saw net income drop from CHF907 million ($977 million) for the first half of 2012 to CHF819 million this year, with revenues edging down by 0.4%, to CHF5.62 billion.
Multinational operator VimpelCom has blamed a fall in earnings for the three months ending June 2013 on a mixture of foreign exchange movements, regulation in Italy and one-off charges.
The operator – which is now headquartered in Amsterdam but whose biggest market remains Russia – saw earnings before interest, taxation, depreciation and amortization (EBITDA) fall by 2%, to $2.43 billion, compared with the same period last year.
Globe Telecom, the Philippines’ second-biggest telecoms operator, has reported a massive fall in net income due to investments it has been forced to make in improving its network.
The operator saw net income for the first half of 2013 drop by 73%, to PHP1.4 billion ($32.1 million), despite growing revenues by 9%, to PHP44.5 billion, over the same period.
Telecom Italia has swung to a net loss of €1.4 billion ($1.86 billion) for the first six months of 2013, compared with a net profit of €1.2 billion for the same period last year, due to goodwill write-downs totaling €2.2 billion.
Even excluding the impact of the write-downs, profits would have been 33% lower than over the first half of 2012 with sales under pressure at home and in the operator’s Latin American markets.
Revenues for the first half of the year totaled €13.76 billion, down 2.7% in organic terms compared with the first six months of 2012.
Reliance Communications, India’s third-biggest mobile operator, has reported a 33% decline in profits for the three months ending June 2013, to INR1.08 billion ($17.8 million), despite growing revenues by 1%, to INR53.15 billion, over the same period.
The sales improvement comes amid a lessening of competition in India’s mobile market and follows encouraging signals from Bharti Airtel (New Delhi, India), the country’s leading player, and Idea Cellular (Mumbai, India), another rival.
T-Mobile Austria has filed a challenge to the terms of an auction due to be held in September for frequencies that will enable operators to build fourth-generation (4G) networks, its lawyer said.
The move may create uncertainty around the auction for the 4G Long-Term Evolution (LTE) networks, which aims to raise at least 526 million euros ($698 million) and is necessary before 4G networks can be rolled out nationwide.
Spain's biggest telecoms operator Telefonica signed a deal with No. 4 provider Yoigo on Thursday allowing it to use its rival's superfast mobile Internet frequencies in exchange for access to its broadband assets.
Telefonica (Madrid, Spain), the only operator in Spain that does not currently provide 4G services, will have full use of Yoigo's (Alcobendas, Spain) superfast spectrum, while the smaller player will now be able to compete in the attractive market of bundling fixed-line and mobile telephone services.