Research In Motion Ltd (Waterloo, Canada) shares jumped on Friday after the embattled BlackBerry maker posted quarterly results that showed it was still able to pull off a surprise as it tackles the formidable task of getting consumers excited over its new smartphone line.
While RIM's performance gave Wall Street a modicum of optimism, analysts stressed RIM has to now prove that the BlackBerry 10 devices, due early next year, can halt its brand's downward spiral. That won't be easy, they said.
Telekom Austria (Vienna, Austria) has slashed its dividends by 87% in the same week that Mexican billionaire Carlos Slim secured a 23% share in the incumbent operator.
In a statement released this week, the company said it would cut its dividend from €0.38 to €0.05 per share this year and maintain that figure throughout 2013.
Singapore state investor Temasek Holdings (Singapore) will sell as many as 500 million shares in Singapore Telecommunications Ltd (Singapore) to raise up to $1.34 billion, according to a term sheet seen by IFR late on Tuesday.
The transaction comprises a base size of 400 million SingTel shares at S$3.20 and S$3.25, which works out to around S$1.3 billion ($1.06 billion). It includes an upsize option for another 100 million shares that if exercised will raise the deal size to $1.34 billion.
A Temasek spokesman confirmed the sale.
Telecoms retail revenues in emerging Asia-Pacific markets are forecast to increase from $229.7 billion in 2011 to $323.7 billion by 2016, according to a new report from Analysys Mason.
Growth will be driven by the adoption of data services on smartphones and other mobile devices, with 3G and 4G connections accounting for 46% of the total by 2016.
The study looks at Bangladesh, China, India, Indonesia, Malaysia, Pakistan and Thailand, noting that China and India account for 68% of the region’s population, 64% of active SIMs and 75% of retail revenues.
Globecomm’s fourth-quarter net profit has more than tripled as infrastructure revenues were boosted by work on a major government contract.
The satellite operator reported net income of $7.1 million, compared with $2.2 million in the fourth quarter of 2011, but Globecomm (Haupagge, USA) attributes the increase largely to “a change in fair value of the ComSource earn-out”.
Globecomm acquired software developer ComSource in April 2011 for $20 million, funding $18 million of the transaction through a credit facility with Citibank.
Module maker Telit (London, UK) has witnessed a dip in first-half profit despite reporting impressive gains in revenues as it capitalizes on the growing demand for M2M products and services.
A rise in expenses linked to takeover activity, the launch of a new business venture and the opening of new sales offices in the Czech Republic and Australia pushed net profit down to $2.3 million from $2.6 million in the first half of 2011.
Revenues at the company rose by 21.6% over the same period, to $98.6 million, with Telit in the vanguard of new M2M offerings.
Brazilian telecoms operator GVT (Curitiba, Brazil) has reported impressive gains in revenues while trimming its forecast for overall sales growth this year.
The company saw net income rise by 31.4% to 2.05 billion Brazilian reais ($1.01 billion), compared with the first half of 2011, buoyed by the take-up of fast broadband connections and greater usage of voice services.
Were it not for a new tax rate, the company says its revenues would have grown by 42% year on year.
Just days after rivals blamed it for denting their profits, French telecoms upstart Free (Paris, France) claimed to have secured a 5.4% share of the country’s mobile-phone market, with 3.6 million customers, since launching its services in January this year.
The company has been accused of starting a price war by rivals including Vivendi-owned SFR (Paris, France) and Bouygues (Paris, France), both of which announced disappointing results last week.
French mobile-phone operator Bouygues Telecom (Paris, France) has blamed new entrant Free (Paris, France) for its dwindling profits and shrinking customer base over the first half of the year.
Net income at real-estate company Bouygues fell by 29%, to €278 million, compared with the first half of 2011, due to the setbacks at the group’s mobile-phone business.
Bouygues Telecom also expects full-year earnings before interest, tax, depreciation and amortisation to fall by 41% to around €750 million as a result of expenses related to cost cutting.
Rising handset subsidies led to a 2% year-on-year fall in profit at China Unicom (Beijing, China) for the second quarter of the year.
China’s second-biggest mobile operator reported net profit of 2.42 billion yuan ($381 million) as it increased spending on smartphones in a bid to lure more Chinese consumers on to its 3G networks.
Even so, the results were slightly better than expected, based on a poll of six analysts conducted by Reuters, due to a drop in depreciation expenses.