Financial

Telit maintains bullish outlook as profit slips

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.

Brazil's GVT cuts full-year sales forecast

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.

Free claims 5.4% share of French mobile-phone market

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.

Bouygues blames rival Free for profit decline

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.

China Unicom hit by 3G competition

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.

Telecom New Zealand profit boosted by Chorus demerger

Telecom New Zealand has reported huge gains in profitability thanks to one-off adjustments related to the demerger of its infrastructure business in December last year.

New Zealand’s incumbent operator reported net profit of NZ$1.2 billion ($973 million) for 2012, compared with just NZ$166 million last year, several months after agreeing to spin off Chorus.

The company agreed to the separation under pressure from the New Zealand government, but Chorus was subsequently awarded the bulk of contracts to build a new fibre-optic broadband network across the country.

TMT Finance & Investment Asia

Date
Start Date: 
Thursday, December 6, 2012
End Date: 
Thursday, December 6, 2012

Hong Kong:

Join Asia's leading Telecom Leaders, Dealmakers, Investors and Advisers in Hong Kong on December 6 for the premier gathering for telecom strategy, financing and investment. 

TMT Finance & Investment Asia brings together the key representatives from the telecom and finance community in a series of leadership panels, networking sessions and visionary keynote speeches. 

Finance and Investment Forum Australia

Date
Start Date: 
Wednesday, November 7, 2012
End Date: 
Wednesday, November 7, 2012

Sydney, Australia:

The First forum for the Australasia region covering datacentre and cloud finance and investment. 

Researched and produced by consulting firm BroadGroup, the first forum took place at the Cass Business School in London in 2007 and since then it has become recognized as the only annual international meeting point for investors, operators, professional intermediaries and legal counsel focused on the data centre sector. Now, for the first time the forum has been extended to Australia. 

Datacentre Investment Forum Finland

Date
Start Date: 
Thursday, October 25, 2012
End Date: 
Thursday, October 25, 2012

Finland:

A unique forum for investors, data centre operators and enterprises outsourcing to third party data centres that explores why the Nordics are becoming an established location for major international data centre operations. 

China Telecom buys 3G assets as profit slumps 8.3%

China Telecom has announced plans to buy 3G infrastructure from China Telecommunications Corporation, its state-run parent, while reporting an 8.3% fall in net profit for the first half of the year, to 8.8 billion yuan ($1.4 billion), compared with the same period in 2011.

The operator, which competes against bigger rivals China Mobile and China Unicom in the mobile-phone market, says it will spend approximately 84.6 billion yuan on CDMA infrastructure currently owned by China Telecommunications Corporation.

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