ZTE Corp, the world's fourth-biggest maker of mobile phones and fifth-ranked telecommunications equipment manufacturer, reported a $310 million quarterly net loss, its first since listing in Hong Kong in 2004, on shredded margins, project delays and accounting changes in China.
Shenzhen-based ZTE, led by Shi Lirong, had previously warned its quarterly loss could be as much as 2 billion yuan - eight times its first-half profit - triggering a 16 percent drop in its stock price on October 15, a self-imposed 50 percent pay cut by executives, and warnings from Fitch ratings agency.
Telecoms equipment maker Ericsson reported a 42 percent drop in core profit and promised more cost cuts to protect itself from tough competition and slowing orders.
Telecom gear makers are under stress from price pressures and slower spending by the operators that are their clients, factors that Ericsson (Stockholm, Sweden) - the world's number one mobile network equipment maker - said would continue in the short term.
Attended by strategic and financial leadership of publicly quoted and private companies engaged in the sector, the Finance and Investment forum for datacenters is the premier conference for financiers, investors, private equity, venture capital, property specialists, technology owners and professional intermediaries and will take place in London 6 December. The programme will address the financials, business models, demand, trends, market prospects and forecasts for 2013 and beyond and ROI for private and publicly quoted datacentre and cloud service providers and operators, with investor focus on gaining access to ‘growing tech stocks’ with high revenue growth and relatively stable fixed costs.
AT&T Inc posted third-quarter revenue below Wall Street estimates as it added fewer customers than expected, citing a shortage of the latest Apple Inc iPhone.
The No. 2 U.S. mobile service provider said it had 151,000 net new subscribers in the quarter, compared with the average expectation for 358,000, according to five analysts contacted by Reuters.
Its bigger rival, Verizon Wireless (New York, USA), added 1.5 million subscribers in the quarter.
Mobile operator EE said Britain's first 4G service will cost from 36 pounds ($57.72) a month under a pricing strategy designed to lure smartphone customers to its superfast network before rivals are able to launch competing products.
Chief Executive Olaf Swantee said the company's tariffs, which range from 36 pounds for 500MB of data to 56 pounds for 8GB, were about 10-20 percent more than for equivalent 3G plans. He said it was a small premium to pay for up to five times faster connections.
Norwegian telecoms firm Telenor
Telenor (Fornebu, Norway), which has over 150 million subscribers across Europe and Asia, said earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6.1 percent to 8.796 billion crowns ($1.53 billion), beating the average of forecasts for 8.54 billion crowns.
Equipment maker Juniper Networks reported an 80% decline in third-quarter net income as restructuring costs chewed into revenues that were only slightly up on 2011 results.
Net income came in at $17 million, compared with $84 million during the third quarter of 2011, while revenues rose to $1.12 billion from $1.11 billion a year earlier.
The company has been hit by a reduction in spending on network equipment, as operators lower their capital expenditure in response to the poor economic conditions.
T-Mobile USA has insisted that a merger with MetroPCS would make it a stronger rival to AT&T, Verizon and Sprint without upsetting the competitive balance of the US market.
In a regulatory filing published by the Federal Communications Commission this week, the operator sought approval for its proposed tie-up with MetroPCS (Richardson, USA), the country’s fifth-biggest operator, announced earlier this month.
Dutch incumbent KPN reported declining profits and revenues for the third quarter, with tough competition in Germany’s mobile-phone market largely blamed for the slump.
The operator’s net income fell by 38%, to €250 million ($324 million), compared with the third quarter of 2011, while revenues dropped 3.6% to about €3.1 billion.
Qtel, Qatar’s state-controlled operator, is interested in purchasing Vivendi’s stake in Maroc Telecom, the largest telecoms business in Morocco, reports the Financial Times.
Thought to be interested in concentrating on its media business henceforth, the French conglomerate is reviewing its ownership of various telecoms businesses, including Maroc Telecom (Rabat, Morocco), in which it holds a 53% stake, and SFR (Paris, France), a French mobile-phone operator.