Telecompaper Headlines

Skype investors reach agreement with Joltid over patents

Fri, 06 Nov 2009 16:05:00 +0100

(Telecompaper) Silver Lake-led investor group, which had previously entered into a definitive agreement to acquire a majority stake in Skype from the company, has reached a settlement agreement with Joltid and Joost that gives Skype ownership over all software previously licensed from Joltid and ends all litigation currently pending against the investor group and eBay at the closing of the acquisition. As part of the settlement agreement, Joltid and Skype founders Niklas Zennström and Janus Friis will join the investor group, contributing Joltid software and making a significant capital investment in exchange for a 14 percent stake in Skype. As a result, Silver Lake and other investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56 percent of Skype and eBay will retain 30 percent. As previously announced, eBay will receive approximately USD 1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. The deal, which values Skype at USD 2.75 billion and is not subject to a financing condition, is expected to close in the fourth quarter of this year. The investor group will no longer include Index Ventures, which has withdrawn from participation. Danny Index Venture's Danny Rimer said that the deal terms changed for Index such that it no longer matches their investment criteria.

Telus Q3 hurt by economy, higher competition

Fri, 06 Nov 2009 16:02:00 +0100

(Telecompaper) Canadian operator Telus reported third quarter operating revenues down 1.6 percent to CAD 2.411 billion from the year before, reflecting continued declines in voice revenues. Data and mobile revenues grew modestly, affected by a weak economic environment and intense competition. EBITDA fell 5.3 percent to CAD 923 million, due primarilylower revenues, higher pension plan benefit expenses and higher restructuring costs from ongoing operating efficiency initiatives. Net income came out at CAD 280 million and earnings per share (EPS) at CAD 0.88, a decrease of 2.1 and 1.1 percent respectively. Subscriber connections increased by 326,000 in the year to end-September, reaching 11.86 million at the end of the quarter, due to mobile, TELUS TV and high speed internet growth. Mobile operations saw 125,000 net ads, a decrease of 29 percent year-on-year, due mainly to churn at Koodo subscribers going back to normal levels following last year's launch. Telus TV showed net ads at 22,000, an 83 percent increase from the year before. Telus high speed internet net ads reached 9,000, down from 13,000 the year before, due to a maturing market and promotional activity from cable TV competitors. The mobile division saw revenues lift 0.3 percent to CAD 4 million, while network revenue grew 3.4 percent to CAD 1.2 billion. The company again updated its full year guidance.

TDC posts flat revenues, EBITDA growth in first nine months

Fri, 06 Nov 2009 14:03:00 +0100

(Telecompaper) Danish operator operator TDC has seen its revenue rise slightly by 0.5 percent to DKK 26.8 billion in the first nine months. EBITDA increased by 7.3 percent to DKK 9.7 billion, while EBITDA margin was 36.2 percent, up from 33.9 percent in the first nine months of 2008. TDC's total customer base grew by 7.4 percent to 11.4 million customers and its domestic customer base grew to 8.5 million, up by 3.4 percent, reflecting an influx of mobile, TV and mobile-broadband customers. TDC's Swiss subsidiary, Sunrise, is continuing its strong development with revenue of DKK 7.3 billion in the first nine months, up by 15.1 percent, and EBITDA of DKK 1.8 billion, up by 19.3 percent. Revenue and EBITDA growth are both related to organic growth in mobile operations, the acquisition of Tele2 and a favorable exchange-rate development. TDC's cash flow from operating activities grew by DKK 2.2 billion or 37.5 percent compared with the first nine months of 2008. TDC's net interest-bearing debt totaled DKK 28.6billion at the end of 3Q as opposed to DKK 40.5 billion in the year ago period. The outlook for 2009 remains unchanged. TDC's revenue and net income from continuing operations excluding special items are expected to be level with 2008.

Telecom Italia net profit down due to Hansenet write-down

Fri, 06 Nov 2009 11:10:00 +0100

(Telecompaper) Telecom Italia reports revenues of EUR 6.77 billion for the third quarter of this year, down 5.6 percent year-on-year and the EBITDA decreased by 0.4 percent to EUR 2.99 billion. These results exclude the figures of TI's German subsidiary Hansenet, which is sold to Telefonica. The EBITDA margin improved by 2.4 percent to 44.2 percent and the EBIT grew 1.3 percent to EUR 1.61 billion. Telecom Italia's net profit for the quarter decreased from EUR 626 million in 2008 to EUR 201 million in Q3 2009, including a write down of EUR 540 million of HanseNet goodwill. The revenues for the first nine months decreased 6.2 percent to EUR 20.19 billion. Telecom Italia's domestic revenues dropped 5.4 percent year-on-year to EUR 16.233 billion and the Brazilian revenues decreased by 8.8 percent to EUR 3622 billion due to currency fluctuations as the revenues show an organic growth of 1 percent year-on-year. EBITDA stood at EUR 8.526 billion for the first nine months growing 1.5 percent year-on-year and the EBITDA margin was 42.2 percent versus 39 percent in the first nine months of 2008. Telecom Italia's net profit for the first nine months decreased by EUR 570 million year-on-year to EUR 1.165 billion, due a EUR 540-million write-down of the goodwill of the broadband business in Germany, aimed at aligning HanseNet's book value to its estimated sale value.

Orange launches mobile operations in Armenia

Fri, 06 Nov 2009 09:16:00 +0100

(Telecompaper) Orange has launched mobile telecommunications services in the Republic of Armenia. Orange says investments in the launch of mobile operations in Armenia exceeded EUR 100 million. The operator will provide the expertise and investments necessary to develop a 2G and 3G+ network with nationwide coverage. Orange plans to expand its mobile network to over 80 percent of the Armenian population, including 500 towns and villages. The operator currently employs around 300 people in Armenia, while an additional 500 people are employed indirectly through suppliers and third-party retailers. Orange will initially offer services for both residential and business customers. The operator's services portfolio includes a complete catalogue of mobile and data offers, as well as a range of international tariffs, leveraging agreements with over 130 roaming partners worldwide. Orange also plans to introduce Apple's iPhone in Armenia in the coming months. The Orange Customer Service is currently available in three languages, namely Armenian, Russian and English. Orange has also launched its official website for Armenian customers. Armenia has a population of around 3.2 million people, including 1.1 million in the Yerevan capital. Mobile penetration in Armenia currently stands at 80 percent.

SK Broadband sees net loss widen in Q3

Fri, 06 Nov 2009 05:49:00 +0100

(Telecompaper) Korean internet provider SK Broadband posed third quarter revenues of KRW 473.9 billion, up 5.8 percent from KRW 447.8 billion in Q3 2008. Revenues rose due to growth in broadband, voice and IPTV segments. However, the company posted an operating loss of KRW 40.9 billion and a net loss of KRW 59.3 billion due to increased operating expenses related with expansion of the subscriber base. In the third quarter last year, the company posted an operating profit of 2 million and a net loss of KRW 15.3 billion. EBITDA was KRW 61.8 billion, down 41.9 percent from KRW 106.5 billion in the year-ago quarter. SK Broadband added about 44,000 broadband subscribers during the quarter, bringing its total to 3.79 million (includes fibre, xDSL and cable). The company also added 290,000 VoIP customers to reach a total of 2.52 million, and added 120,000 IPTV subscribers. Furthermore, customers for the bundled product with SK Telecom, T-band, went up by 138,000 during the quarter.

Telecom NZ's revenues drop 6.5% in Q1

Fri, 06 Nov 2009 04:19:00 +0100

(Telecompaper) Telecom New Zealand saw its net earnings rise almost 10 percent in the first quarter ended 30 September. Net earnings totalled NZD 163 million, up 9 percent from NZD 149 million a year earlier, due in part to a NZD 43 million one-off effect from changes in tax law. EBITDA declined 4.1 percent to NZD 447 million but was in line with guidance. Revenue for the quarter fell 6.5 percent to NZD 1.36 billion, while operating expenses fell faster, to NZD 909 million, a 7.7% decrease on the equivalent quarter last year. During the first quarter, Telecom saw a net increase of 64,000 mobile customers, with 242,000 customers on its new XT network at the end of its first full quarter of operation. Fixed broadband growth has remained stable, at around 11 percent, with total connections on Telecom's network reaching 899,000 during the quarter. Telecom retail attracted 50 percent of the new customers, and its share of the market has remained at 57 percent. The company is maintaining its guidance for adjusted EBITDA in FY 2010 to be -1 to +2 percent and adjusted group earnings guidance has increased from NZD 400 million to 440 million.

Telefonica to buy Hansenet for EUR 900 mln

Thu, 05 Nov 2009 16:41:00 +0100

(Telecompaper) Telefonica has agreed to buy Telecom Italia's German broadband operator Hansenet for EUR 900 million. The takeover of the DSL operator will make Telefonica the number-three player on the German market in terms of revenue, with combined annual sales of almost EUR 5 billion. Pending a definitive agreement and regulatory approval, the sale is expected to close in the first quarter of 2010. The deal gives mobile operator O2 Germany a sister company with around 2.2 million DSL subscribers, helping the operator to move into the fixed-mobile converged and bundled services market. Telefonica O2 already has around 15 million mobile customers and 200,000 DSL subscribers in Germany.

Netia revenue up 37% to PLN 370.3 mln in Q3

Thu, 05 Nov 2009 14:04:00 +0100

(Telecompaper) Polish fixed-line operator Netia saw its third-quarter revenue increase by 37 percent from a year earlier to PLN 370.3 million. EBITDA almost doubled to PLN 81.9 million from PLN 43.8 million in the same quarter of the previous year, and the EBITDA margin was 22.4 percent. Net profit was PLN 4.2 million, versus a net loss of PLN 18.6 million in the year-ago period. Netia's broadband subscriber base rose by 7 percent over the previous quarter to 490,000, and the voice customer base grew by 2 percent to 1.15 million from 1.13 million at end-June. Netia increased its EBITDA guidance for 2009 to PLN 290 million from PLN 275 million and its adjusted EBITDA guidance to PLN 300 million from PLN 290 million, reflecting the results of its Project Profit and Tele2 Polska synergies coming in ahead of earlier expectations. The company now projects at least 525,000 broadband subscribers (revised upwards from 510,000), at least 1.165 million voice subscribers (revised downwards from 1.2 million) and 300 unbundled LLU nodes (unchanged) by year-end, before any positive impact of expected further acquisitions. Revenue is expected to be approximately PLN 1.495 billion (revised downwards from PLN 1.5 billion), and capex is now expected to total PLN 250 million (revised downwards from PLN 260 million). Furthermore, Netia is revising its mid-term outlook and now estimates revenue increases for the combined retail segments (Home, Corpo and SOHO/SME) for the 2010-2012 period at 5-10 percent CAGR, while total revenue is expected to increase at 3-5 percent CAGR for the same period due to the reduction in Carrier segment revenue resulting from the reduced scope of transmission services for P4 and the continued defocusing of lower margin wholesale services. In addition, Netia now guides for being operating free cash flow positive in 2009 including acquisitions, a year earlier than previously expected, and the company brought forward its deadline for reducing capex to 15 percent of sales, from 2011 to 2010.

Samsung inks licensing deal with Qualcomm

Thu, 05 Nov 2009 14:02:00 +0100

(Telecompaper) Samsung Electronics will pay USD 1.3 billion and royalties to mobile semiconductor manufacturer Qualcomm under a new fifteen-year licensing contract. Samsung will make the advance payment for the use of Qualcomm's licences in wireless technology including CDMA. The company will also grant Qualcomm the right to use Samsung's 57 patent licences in mobile technology. The technology in the cross-licensing contract includes 4G wireless technology used in handset devices and base stations.