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.
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.