Financial

Telecom Italia swings to $1.86 billion net loss in first half

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.

Leap Wireless sees net loss widen on customer defections

Struggling US mobile operator Leap Wireless has reported a widening of second-quarter losses owing to debt repayments and dwindling revenues as its customer base shrinks.

The operator – recently the target of a $1.2 billion takeover bid from AT&T (Dallas, TX, USA) that has yet to secure regulatory approval – saw its net loss grow to $156.4 million for the three months ending June 2013, from $46 million in the year-earlier quarter.

Revenues, meanwhile, shrank by 7% over the same period, to $731.5 million.

Ericsson and STMicroelectronics complete ST-Ericsson split

Ericsson and STMicroelectronics have announced the completion of the process to split up ST-Ericsson, the troubled mobile chip joint venture they founded in 2008.

Having reported a sequence of losses since it came into existence, ST-Ericsson (Geneva, Switzerland) was marked for closure by its parents in March this year after failing to attract interest from prospective buyers.

Reliance Communications earnings point to reduction in competition

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.

Telefonica, Yoigo to share 4G, broadband in Spain

Reuters

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.

Vodafone restructures to create one European unit

Reuters

Vodafone said on Thursday it would merge its northern, central and southern European regions into one unit which will be led by Philipp Humm.

Under the reorganization to take place on October 1, the group's successful Turkish division will fit into the Africa, Middle East and Asia-Pacific unit.

Paolo Bertoluzzo, currently the head of southern Europe, will become the group's commercial and operations officer. Humm had been the head of northern and central Europe for the British mobile operator.

Hutchison H1 performance beats forecasts on solid overseas performance

Reuters

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.

Ooredoo net income rises 44% on revenue growth, overseas gains

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.

Eutelsat announces $831 million takeover of Mexico's Satmex

French satellite operator Eutelsat has agreed an $831 million takeover of Mexico’s Satmex as it works on expanding its presence in so-called “high growth markets”.

Announced on Wednesday, the deal will see Eutelsat (Paris, France) pay $831 million in cash and assume the Satmex’s (Mexico City, Mexico) net debt of $311 million in exchange for 100% of the company.

Bharti Airtel reports 9.2% revenue growth on surge in customer spending

India’s Bharti Airtel has reported falling profits for the three months ending June 2013, despite growing its revenues, due to foreign exchange losses and rising tax charges in Africa.

The operator reported net income of INR6.89 billion ($113 million), compared with INR7.62 billion this time last year, and saw revenues rise by 9.2%, to INR20.3 billion, over the same period.

Bharti (New Delhi, India) has continued to grow its customer base, adding another 3.7 million subscribers over the recent three-month period to give it nearly 275 million customers in total.

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