Tag Archives: Earnings

Telecom Argentina net profits up by 33% in 2011

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Telecom Argentina reports 2011 revenues of ARS 18.52 billion, up 26 percent from 2010, mainly fuelled by the mobile and broadband businesses.

Net income for the period exceeded ARS 2.42 billion, up by 33 percent from 2010. Mobile revenues rose 31 percent to ARS 13.18 billion, and fixed-line revenues increased 15 percent to ARS 5.34 billion. OIBDA improved 23 percent to ARS 5.61 billion.

Nucleo, the company’s mobile unit in Paraguay, had 2.1 million customers at the end of 2011, up 14 percent from a year earlier.

The fixed division increased the number of lines in service 1 percent from a year earlier to 4.14 million, and the number of ADSL customers rose 12 percent year-on-year to 1.55 million users at end-December. ARPU climbed 7 percent year-on-year for fixed customers to ARS 45.7, while mobile ARPU grew 16 percent to ARS 51.4.

The operator’s mobile unit Personal gained 1.8 million new customers in the nine-month period, for a total of 18.1 million at the end of December.
Personal’s subsidiary in Paraguay, Nucleo, had almost 2.1 million customers at 31 December 2011, up 14 percent year-on-year. Prepaid and postpaid customers represented 83 percent and 17 percent, respectively

Q4 Net profits down for America Movil

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America Movil reported fourth-quarter revenues of MXN 182 billion, up 12.3 percent from a year earlier. Mobile revenues rose 15.4 percent, and fixed-line revenues were up 6.8 percent.

Growth was led by mobile data services, up 27 percent on a constant currency basis, as well as expansion in fixed broadband and pay-TV. This helped offset the sharp cuts to termination rates in its home market Mexico. EBITDA rose a slower 3.9 percent to MXN 64.5 billion, hurt by the rate cuts and investments in expansion and marketing, particularly in Brazil. Operating profit was up 15.1 percent to MXN 38.3 billion, helped by lower depreciation.

Net profit fell to MXN 16.3 billion from MXN 25.5 billion a year earlier, due to the weaker peso and higher financing costs after the buy-out of Telmex and share buybacks. Net debt rose to MXN 321 billion from MXN 207 billion at the close of 2010.

The company finished 2011 with a total 299.6 million access lines, up 8.3 percent over the year. Mobile customers grew by 304,000 in the three months to December, slower than previously due to a change in active prepaid definitions in Mexico, Colombia and Ecuador, which resulted in the disconnection of almost 5 million customers.

The postpaid base rose by 1.6 million in the quarter to 34.7 million. The total mobile base numbered 241.8 million at year-end. The number of landlines rose 3.4 percent from a year earlier to 29.4 million, broadband subscribers increased 15.6 percent to 15.1 million and pay-TV customers were up 33.1 percent to 13.4 million.

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Digicel Group Reports Six Monthly Revenues Rise 16%

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Digicel Group saw revenues increase by 16 percent year-on-year to USD 1.24 billion in the first half of the fiscal year. EBITDA for the six months ended 30 September grew by 15 percent year-on-year to USD 524 million.

The operator’s subscriber base rose 14 percent to 11.1 million across Digicel’s 30 markets worldwide. Haiti in particular experienced rapid growth adding 830,000 new subscribers in the first six months of the financial year. Revenue earned from value-added-services, including mobile data and messaging, was up 47 percent year-on-year, helped by strong demand for smartphones, the company said.

Digicel Group CEO, Colm Delves, comments; “Our latest set of financial results reflect Digicel’s ongoing strong growth and outperformance of our industry peers. I am pleased to report that we have seen growth across the board and are also continuing to diversify our revenue mix with significant increases in value added services.

He continues; “The refinancing of our senior credit facility was well supported and provides us with further balance sheet flexibility.”

Digicel operates in 30 markets of the Caribbean, Central America and the Pacific.

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America Movil increases stake in Telmex to nearly 93%

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America Movil has increased its stake in Telefonos de Mexico (Telmex) from 60 percent to nearly 93 percent, following the preliminary results of a shareholder buyout offer.

America Movil currently holds 92.79 percent of Telmex shares after the offer expired on 11 November. Stockholders of America Movil tendered 5.92 billion shares of the unit for MXN 10.50 pesos per share.

America Movil will pay an overall MXN 62.1 billion (approximately USD 4.6 billion) to increase its Telmex stake. The Mexican stock exchange said in a filing that Telmex had been removed from the benchmark IPC index and replaced by shares of food franchiser Alsea, Reuters reports.

 

Telefonica Posts First Quarterly Loss in Nine Years

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Telefonica has announced its financial results, and reported that its net income for the three months to the end of September plunged to a loss of EUR429 million (US$582 million), compared to a profit of EUR 5 billion (US$6.9 billion) a year ago.

The company’s first quarterly loss in nine years was put down in part to EUR 2.6 billion worth of costs associated with its Spanish redundancy programme to cut 6,500 staff over three years as the company copes with the economic downturn in its home market.

Third quarter revenues rose by 3.7 percent to reach EUR 15.8 billion (US$21.4 billion).

Commenting on the previous nine months performance, Telefónica Chairman, César Alierta, has stated that consolidated figures at 30 September 2011 reflect the “Company’s focus on setting the groundwork for future revenue growth”, highlighting the results of the strategy to expand mobile broadband services. “30% of our mobile service revenues now come from data services”. He also reiterated the sound results achieved in Brazil, the stabilisation of trends in Spain, and the Group’s capacity to generate high levels of operating cash flow despite the increase in commercial activity and higher investment.”

The total customer base across the group reached 299.7 million at the end of September 2011. By region, Telefónica Latinoamérica and Telefónica Europe, were the major contributors to Telefónica’s customer base growth.

Debt at the end of September was EUR 55.4 billion.

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Telecom Italia Q3 results up on South America growth

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Telecom Italia reported revenues for the third quarter of EUR 7.52 billion, up 12.6 percent from a year earlier thanks to its expansion in South America. Growth was driven by Brazil and Argentina, which grew revenues 18.9 and 26.7 percent respectively, while the Italian operations saw the decline in revenues slow to 3.8 percent. EBITDA improved 16.6 percent to EUR 3.20 billion, and net profit grew 32.7 percent from a year earlier to EUR 807 million. In the first nine months of 2011, the company increased capex to EUR 3.19 billion from EUR 2.94 billion a year ago, while operating free cash flow surged to EUR 4.52 billion from EUR 1.07 billion, thanks to the consolidation of the Argentina activities. Net debt was down by EUR 1.2 billion from June, to a total 33.0 billion at the end of September. Telecom Italia maintained its full-year outlook for stable organic revenue and EBITDA, capex of around EUR 4.8 billion excluding the EUR 1.2 billion spent on LTE licences in Italy, and adjusted net debt of around EUR 30.7 billion at year-end.

 

In Italy, total revenues fell 4.0 percent to EUR 4.74 billion. Mobile service revenues fell 7.5 percent to EUR 1.73 billion, and fixed-line revenues were down 3.2 percent to EUR 3.35 billion. EBITDA improved 6.8 percent from a year ago to EUR 2.45 billion, thanks to cost reductions. The operator lost 28,000 retail broadband lines in the quarter, for a total 7.141 million at the end of September, and the number of fixed lines dropped by 135,000 to 14.827 million. IPTV subscribers fell by 32,000 in the three months to 296,000, and VoIP subscribers were down by 90,000 to 1.65 million. The operator did better in the mobile market, where TIM gained a net 419,000 new customers in Q3, to finish September with a total 31.679 million. Mobile voice traffic was up 4.1 percent from a year ago, and the number of handsets sold jumped 63.7 percent to 1.03 million. ARPU fell to EUR 17.5 from EUR 19.6 a year ago and EUR 18.0 in Q2, hurt by cuts to termination rates and price pressure.

Telefonica Brasil Reports Steady Rise in Revenues and Profits

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Telefonica Brasil has reported that its third-quarter revenues rose to R$8.26 billion from R$7.91 billion a year ago, and that its net profit rose to R$1.33 billion from R$1.25 billion a year ago.

The total customer base was up by 13.4 percent to 82.4 million at the end of September, 67 million of which in the mobile segment (+16.2% y-o-y) and 15.3 million in the land-line segment (+2.9% y-o-y);

The mobile broadband customer base grew by 44.8% y-o-y, with a 49.2% market share of net additions. Mobile Data and VAS revenues has accelerated its annual growth, reaching 43.2% in 3Q11.

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