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Vodafone profits surge on Verizon exit but challenges remain

Vodafone nears CWW deal

Vodafone has announced a huge leap in profits for the financial year to end March 2014, thanks largely to the sale of its stake in Verizon Wireless, completed earlier this year. Profit for the year stood at £59.42bn, up from £673m for the previous financial year. However, group revenues were down 1.9 per cent to £46.62bn, while service revenue was down 2.4 per cent to £39.53bn.

Telekom Austria reports Q1 profit drop

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Telekom_Austria_logoTelekom Austria, the Austrian incumbent of which America Movil’s Carlos Slim is currently attempting to gain full control, has reported a year on year decline of 26.5 per cent in net profit for the first quarter of 2014. Group revenues for the firm, which has operations in a number of Central and Eastern European markets, were down seven per cent to €975.9m, yielding profit of €40.8m.

Telekom Austria sees Q3 profit down by 48 per cent

Hannes Ametsreiter, CEO, Telekom Austria

Telekom Austria, which last month paid out more than €1bn in the Austrian LTE spectrum auction, has reported a drop in third quarter profit of almost 50 per cent. Net income for the period was €52.13m, down 48.3 per cent year on year from €99.2m, while revenue declined 5.3 per cent to €1.04bn.

Ericsson improves profit despite drop in sales

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Leading infrastructure and solutions vendor Ericsson has reported a 38 per cent increase in net profit year on year for the third quarter of 2013, despite sales dropping by three per cent on the same period in 2012. Profit for the quarter stood at SEK3bn ($472m), while sales were at SEK53bn.

EE grows LTE user base but revenues drop

Service revenues were down 3.3 per cent despite strong growth in LTE user numbers

UK operator EE grew its postpaid LTE subscriber base by 72 per cent during the third quarter this year, ending the quarter on almost 1.2 million users. But at £1.43bn the firm’s service revenue was down 3.3 per cent year on year and 4.4 per cent sequentially as it continued to absorb the impact of regulation on termination rates and roaming charges.

Telstra improves profits, cites customer service focus

Telstra will be forced to lower prices for access to its broadband network

Australian incumbent Telstra has increased its annual revenues by 1.9 per cent to A$25.98bn (US$23.58bn) for the year to end June 2013, while net profit jumped 12.9 per cent to A$3.9bn. CEO David Thodey said the firm’s performance was down to improvements in customer service and focus on growth businesses. The firm added 1.3 million mobile subscribers during the 12-month period.

EE grows margin, sees top line fall

EE said its early move to LTE was reaping rewards

The UK’s largest mobile network and only LTE operator, EE, has reported a 4.4 per cent drop in service revenue for the second quarter year on year, to £1.42bn. But the firm’s EBITDA margin for the first half of 2013 rose 2.6 per cent year on year to 22.9 per cent. The firm attributed its top line drop to regulatory measures affecting mobile termination rates and roaming revenues, without which service revenue would have been flat year on year for the second quarter, it said.

Ericsson holds steady despite loss on rollouts

"We want direct relationships..." Jan Frykhammar, CFO, Ericsson

Ericsson’s first quarter profits fell year on year to SEK1.2bn (€139m) from SEK8.8bn for the same period in 2012, largely due to the boost given to 1Q12 numbers by the firm’s exit from the Sony Ericsson device JV. While the vendor recorded a two per cent uptick in sales to SEK52bn it was hit by currency fluctuations and a disappointing performance from its network rollout business.

China Unicom grows data usage with low-cost devices

Unicom said that it improved smartphone quality to price ratio in 2012

Chinese operator China Unicom has announced a 92 per cent year on year increase in mobile data usage, attributing the growth in part to the availability of low-cost smarpthones. In an earnings release posted late last week, Unicom referenced an improvement in its smartphone “quality to price ratio”.

Vodafone records 1H loss of £1.89bn

Vittorio Colao said Vodafone had been impacted by difficult conditions in Southern Europe

Vodafone has announced a loss of £1.89bn for the six months to the end of September 2012 on the back of write downs for its Spanish and Italian operations totaling £5.9bn. The international operator recorded a profit of £6.64bn for the same period in 2011 and chief executive Vittorio Colao said the 1H12 results reflected “tougher market conditions, mainly in Southern Europe”.

ZTE gives first-half profit warning

ZTE has warned that its 1H12 profit is on course to drop up to 80 per cent

Chinese infrastructure vendor ZTE has warned that its first half profit is on course to drop up to 80 per cent in 2012, blaming reduced investment income, losses from foreign exchange and a drop in domestic revenue. The Shenzhen firm said that its first-half net income for the year may be between 154m yuan ($24m) and 308m yuan, in a Hong Kong stock exchange filing. The firm recorded an income of 769.3m yuan in the same period last year.

Everything Everywhere rues impact of MTR cuts

Everything Everywhere says that service revenues would have grown were it not for the impact of MTR cuts in the UK

Everything Everywhere, the company formed by the merger of Orange and T-Mobile in the UK, has posted a drop in service revenue of 2.5 per cent to reach £1.5bn in its first quarter earnings statement.

Nokia warns of losses in face of “competitive industry dynamics”

Nokia's flagship Lumia smartphone

Finnish handset vendor Nokia has announced that is expecting to report a loss for the first two quarters of 2012. In a statement released Wednesday the firm blamed “competitive industry dynamics” for damaging net sales for its Mobile Phones and Smart Devices business units, particularly in the Middle East and Africa, India and China.

RIM reports plunge in income and delays to products

RIM is carrying its troubles on into 2012

Beleaguered Blackberry maker RIM reported more bad news as the firm saw its net income plunge by almost three-quarters to just $265m in the third quarter of 2011. The figure is a 71 per cent drop from the $911m it recorded in 3Q10, and was impacted in large part by a $485m pre-tax charge related to unsold PlayBook tablets.

RIM sees profit slashed by more than half

RIM saw its profits drop to less than half of both 1Q2011 and 2Q2010, in its quarterly results for 2Q11

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.

ZTE half-year profit drops 12%

ZTE says its Blade handset has sold over 2 million units to date

Chinese vendor ZTE has announced that its first half profit has fallen 12.4 per cent year on year, to RMB768.5m ($119.7m). The firm attributed the drop in profit to its “market share expansion strategy, a change in product structure and pending software VAT refund subsidies.”

RIM to lay off 2,000 staff

2,000 RIM staff will lose their jobs as part of the cost-cutting move

Canadian vendor Research In Motion has announced that it is to lay off 2,000 staff as part of the cost-cutting programme the firm unveiled in June. The Blackberry manufacturer said that the cuts, which will affect more than ten per cent of its workforce, were “a prudent and necessary step for the long-term success of the company.”

Nokia warns of poor performance, withdraws financial targets

Stephen Elop is under pressure to rejuvenate Nokia's fortunes in the smartphone market

Troubled Finnish handset vendor Nokia has said that it will not hit its sales or margin targets for the second quarter of 2011 due to a range of factors impacting negatively on its business. The firm said its difficulties are such that it was “no longer appropriate to provide annual targets for 2011.”

Apple posts another record quarter as Cook raises doubts over LTE iPhone

Tim Cook's comments have dampened hopes that Apple will release an LTE iPhone this year

Cupertino based computer, handset and tablet manufacturer Apple has posted yet another record quarter, raking in second quarter revenue of US$24.67b, producing a net profit of US$5.99b. This was achieved with sales of 3.76m Mac computers, a 28 per cent increase over the year-ago quarter, and 18.65m sales of iPhones, representing growth of 113 per cent.

Sony Ericsson posts fourth consecutive quarterly profit

The Xperia X10, one of Sony Ericsson's 2010 Android flagships

Handset vendor Sony Ericsson has reported net profit of €8m for the Q4 2010, marking its fourth consecutive quarter in profit. Net income for full year 2010 was €90m, the firm said, compared to a loss of €836m for 2009. President and CEO Bert Nordgberg described 2010 as “a turnaround year” for Sony Ericsson, and attributed improvements in the firm’s fortunes to its “shift towards an Android-based smartphone portfolio.”

@telecoms