Carrier and parent of Orange and T-Mobile UK, Everything Everywhere has posted lower revenue for the third quarter of 2011 compared with the same period last year, citing regulatory cuts as the reason for the drop.
Against the backdrop of the Eurozone debt crisis, it seems a good week to be talking about financial performance. And as always there are winners and losers in the numbers game. The Chinese may be reluctant to help the Greeks out of their hole, but has anyone thought about asking Qualcomm?
Chipmaker Qualcomm has announced a sharp increase in revenue and profit in its financial results for its final quarter and year ending September 25, 2011.
US carrier AT&T’s earnings for the third quarter of 2011 have fallen slightly short of Wall Street expectations as revenues hit $31.5bn, down $103m – or 0.3 per cent – on the same period a year earlier.
Swedish equipment vendor Ericsson turned in a strong set of figures for the third quarter, notching up an increase in net sales of 17 per cent year on year to SKR55.5bn (€6bn), while net income edged up six per cent to SKR3.8bn.
Apple shocked Wall Street by reporting results that missed expectations for the first time in years, despite seeing a staggering 85 per cent increase in profit for the year. The company posted net profit of $25.9bn for the year ending 25 September 2011, up from the $14bn it recorded over the course of FY10. Apple’s total revenue for the year stood at $108bn, 66 per cent higher than what was generated over 2010.
Sony Ericsson has reported a net profit figure of zero for the third quarter of 2011, as company continues to struggle in the increasingly competitive handset market.
RIM’s has seen its profits slide to less than half of what it generated in the previous quarter, and to little over 40 per cent of what it made in the same quarter last year. The company’s quarterly earnings for 2Q11 revealed that its net income for the quarter was $329 million. This marks a steep drop from the $695 million it recorded in 1Q11, an even steeper fall from the $797 million made in 2Q10.
German carrier Deutsche Telekom reported a significant drop in net profit for the first half of 2011, from €1.2bn a year ago to €828m this year. Revenues were on the slide as well from €31bn in H1 2010 to €29bn in H1 2011.
Canada’s Bell Aliant made major progress in its Fibre-to-the-Home (FTTH) expansion plan in the second quarter of this year, and now passes 294,000 homes and businesses in Atlantic Canada with the technology – with over half of its FTTH expansion plan still to come.
It’s results week, and the Q2s are out for a lot of the big names in the industry. For some it’s a chance to boast of great riches and for others a humbling of Murdochian proportions. So who’s up and who’s down? It was all smiles at leading industry supplier Ericsson, where profits for the quarter were up a whopping 59 per cent year on year at SEK3.2bn ($508.1m).
India’s Tata Communications has upped its stake in South Africa’s second national operator Neotel, making the telco a subsidiary of the company. Tata’s stake has increased from 56 per cent to 61.5 per cent. It is not clear which of Neotel’s other shareholders has sold its stake; the Neotel website lists Communitel and Black Economic Empowerment (BEE) partner Nexus Connexion as the other shareholders.
German carrier Deutsche Telekom on Friday announced a 37 per cent drop in first quarter profits compared to the same period last year. The poor showing was mainly due to weak performance of its T-Mobile USA arm, which it is planning to sell to AT&T.
Clearwire has announced the postponement of plans to sell off radio spectrum this year in an effort to raise funds. Following record subscriber growth of 1.8 million in the first quarter of the year and a revenue increase of over $130m, CFO Hope Cochrane said that “With the near-term capital needs of our current business now satisfied, we will be extremely judicious with our spectrum assets.”
Things are looking up for MetroPCS as it continues to roll out its LTE network. The operator, which was the first US network to launch LTE, has announced record first quarter results of US$285m, an increase of approximately 28 per cent over first quarter of 2010.
However much their lawyers would like them to, no two companies can sustain a legal conflict indefinitely and so the industry has evolved to sustain a sort of legal relay race. The last week has seen the baton in the China vs the West event handed over, from Huawei and Motorola, to ZTE and Ericsson.
The joint statement from Huawei and Motorola, detailing the conclusion – with prejudice – of their courtroom tussle, was worded in such a way as to leave the reader in no doubt as to who had taken the moral high ground. The US vendor was all contrition and relief, like a politician apologising to the cameras while holding hands with his wife, after being caught playing leapfrog with a junior aide. “We regret that these disputes have occurred,” said CEO Greg Brown, before looking forward to the “return to our traditional relationship of confidence and trust.”
Net losses of high-value contract customers – to the tune of 318,000 – have put a dampener on an increase of 295,000 prepaid users and a 0.9 percent on year increase in revenue for the last quarter of 2010.
Vodafone Hutchison Australia CEO Nigel Dews revealed the wireless carrier’s intended participation in trials with the semi-state National Broadband Network (NBN) at a financial results press conference on Thursday.
Mobile operator Vodafone reported a significant rise in data revenues during the final quarter of 2010, with data actually exceeding messaging revenues for the first time ever. The proliferation of smartphones and growing use of mobile broadband dongles among enterprises was largely responsible for the growth, Vodafone said.
China Unicom has announced that its full year profits for 2010 are likely to be less than half what the company reported for 2009. The news came days after it was revealed that the Chinese carrier is to deepen its equity relationship with Telefónica, with the Spanish incumbent investing €500m to take its stake in Unicom to 9.7 per cent.