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.
Ports-to-telecoms conglomerate Hutchison Whampoa Ltd, owned by Asia's richest man Li Ka-shing, reported on Thursday better-than-expected first-half profits, buoyed by a solid performance in European infrastructure and telecoms investments.
Li, nicknamed "Superman" by local media for his deal-making savvy, plans to exit the mature Hong Kong supermarket business to focus on investing in European infrastructure and telecom assets as global economic woes drive down prices, analysts said.
Two new telecom licences have just been awarded in Myanmar. The new Telecom Law is now being treated in its final stage in Parliament and is expected to be passed soon. Foreign investments in both the telecom and ICT sectors are welcome, and more new market openings are expected. Beyond the two new telco licences awarded, more new licences for foreign joint ventures or foreign entities are in the pipeline. Amongst the wide array of services permitted, the two new operators will be allowed to offer mobile connections, fixed line services, IT and Internet offerings.
Middle Eastern operator Ooredoo has reported a 44% rise in net profit for the three months ending June 2013, to QAR923 million ($253 million), with earnings boosted by a rise in revenue and gains from overseas interests.
The Qatari operator – formerly known as Qtel – saw revenues grow by 4.2% over the period, to QAR8.7 billion, fuelled by a strong performance in its domestic market as well as in the important markets of Algeria, Indonesia and Iraq.
UK telecoms incumbent BT Group is to split its Retail unit into separate consumer- and business-facing organizations when Gavin Patterson takes over from Ian Livingston as chief executive in September this year.
Called simply BT Consumer and BT Business, the new divisions are being created to help BT (London, UK) focus on its strategic priorities of “driving broadband-based consumer services” and “being the brand for business for UK SMEs”, said the operator in a statement.
Sprint Corp, the No. 3 U.S. mobile service provider, posted a wider quarterly loss due to hefty costs from shutting down its older Nextel network and it warned that customer defections would continue to hurt it in coming quarters.
Shares in Sprint (Overland Park, KS, USA), which recently sold 78 percent of its shares to Japan's SoftBank Corp (Tokyo), rose 1 percent on Tuesday morning as its revenue was better than expected.