Latin American operator NII Holdings has said financial results for 2012 are likely to miss expectations and provided a disappointing outlook for 2013.
The company – which runs telecoms operations in Argentina, Brazil, Chile, Mexico and Peru – said fourth-quarter revenues were likely to be $1.5 billion, compared with $1.6 billion in the fourth quarter of 2011.
Sweden’s Tele2 reported a 57% fall in net profit for the fourth quarter, to SEK565 million ($89 million), as rising costs and higher taxes ate into sales.
Revenues at the company – which operates across a number of European markets – rose by 3.9% to SEK11.3 billion.
“Tele2 [Stockholm, Sweden] continued to show sustainable revenue and subscriber growth during the fourth quarter of 2012, although profitability was below our expectations,” said Mats Granryd, the company’s president and chief executive.
Sprint Nextel Corp, the No. 3 U.S. mobile service provider, said that it talked to four different companies about a potential deal before it announced its agreement to sell 70 percent of its shares to Japan's SoftBank Corp for $20 billion.
UK fixed-line incumbent BT reported a disappointing 6% fall in third-quarter sales, to £4.5 billion ($7.1 billion), as tough economic conditions, adverse regulation and dwindling revenues from line rentals and calls all took their toll.
Although pre-tax profit was 7% higher than a year earlier, at £675 million, the increase was partly attributed to “the reduced cost of sales due to the decline in revenue”, plus lower depreciation and amortisation charges as the company reins in capital expenditure.
Dutch telecoms group KPN is widely expected to announce steps to cut debt when announcing full-year results next week, with some analysts bracing for a share issue.
KPN (The Hague, Netherlands), which will report 2012 results on February 5, breached its own debt target of 2.0-2.5 times debt to core profit (EBITDA) in the second quarter. The ratio hit 2.7 in the third quarter.
First generation Carrier Ethernet already dominates WAN equipment revenue, and now Carrier Ethernet 2.0 is making it easier for Carriers to meet and exploit the demand that Carrier Ethernet has already fuelled
Ten years ago The Metro Ethernet Forum (MEF) was founded to develop and promote a new generation of Ethernet called Carrier Ethernet. Since then Carrier Ethernet has transformed WAN and enterprise connectivity as well as providing an infrastructure to fuel soaring user expectations for mobile applications.
Ratings agency Moody’s has downgraded AT&T on concern about debts the operator has incurred to finance its share repurchase program.
Lowering the credit rating from A3 to A2, Moody’s says it believes the debt- financed program will result in “materially higher leverage for several years before it can be offset by organic growth”.
AT&T Inc's fourth-quarter profit was lower than expected but the telephone company promised earnings and revenue growth this year even if the economy does not improve.
Along with growth from its existing business, Chief Executive Randall Stephenson said on Thursday that AT&T (Dallas, USA) is also eyeing overseas opportunities. He said the idea would be to profit from wireless expansion in countries where services are not yet as advanced as in the United States.
Verizon Communications Inc posted a weaker-than-expected wireless operating profit margin due to hefty costs from smartphones like Apple's iPhone, but the U.S. telephone company promised a big improvement this year as it cuts costs.
While Verizon's fourth-quarter bottom line was weaker than anticipated, investors were encouraged when Chief Financial Officer Fran Shammo said on Tuesday that the company could be in a position to buy back shares sooner than expected and that wireless margins could rise this year to as high as 50 percent.
Portuguese operators Optimus and Zon Multimedia look set to merge to form the country’s second-biggest player, behind Portugal Telecom, after directors from both companies gave their blessing to the tie-up.
Under the terms of the deal, Optimus (Porto, Portugal) will be incorporated into Zon (Lisbon, Portugal) and its shareholders will hold a 40% stake in the combined entity, which will operate under the name of Zon Optimus.
Besides controlling 26% of the market, the new company will have revenues of €1.6 billion and an operating profit of about €540 million.