ZTE’s Revenue Grows 23.8% In 2015

Shi Lirong-ZTE

ZTE's-Revenue-Grows-23.8%-In-2015ZTE’s operating revenue has grown 23.8 percent in 2015 to reach RMB 100.83 Bn i.e. $15.32 billion from RMB 81.47 billion in 2014.

For the first time ZTE’s annual revenue has exceeded RMB 100 billion.

The company has also announced 43.5 percent growth in net profit. Net profit for 2015 is RMB 3.78 billion i.e. 574 million compared to RMB 2.63 billion a year earlier, according to preliminary unaudited results published by ZTE.

ZTE recorded higher sales of 4G LTE network solutions internationally, in addition to China, reflecting the strength of the company’s innovations in telecom networks. The company also posted increased sales of optical network solutions due to increase in broadband networks globally.

ZTE’s 2015 Preliminary Financial Results
Parameter – 2015 (in Bn RMB) – 2014 (in Bn RMB)
Operating Revenue – 100.83 – 81.47
Net Profit – 3.78 – 2.63
Basic Earnings Per Share – 0.92 – 0.64
Source: ZTE, TeleAnalysis

The growth in annual revenue was also driven by increased sales of high-end routers in overseas markets. ZTE also posted higher revenue from sales of enterprise ICT solutions including smart city and data center solutions to corporates and government departments. In addition, ZTE also boosted sales of 4G smartphones outside China, as well as terminal products for homes.

The company strengthened cash flow management, with cash received for the sales of goods and rendering of services exceeding RMB 105 billion, achieving substantial growth in cash inflows from operating activities and net cash flows from operating activities.

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Cisco Q1 Revenue Up 4% Reaches $12.7 Bn


Cisco-Q1-Revenue-Up-4%-Reaches-$12.7-BnCisco today reported its first quarter revenue of $12.7 billion, an increase of 4 percent year over year.

Net income on a generally accepted accounting principles (GAAP) basis of $2.4 billion or $0.48 per share, and non-GAAP net income of $3 billion or $0.59 per share.

“Q1 was a very strong quarter. We are accelerating our ability to deliver on growth opportunities, aggressively driving our cloud business, and delivering continued strength in our deferred product revenue, as we sell more of our portfolio in software and cloud models,” said Chuck Robbins, chief executive officer, Cisco.

“We guided to solid growth in Q2. Our guidance reflects lower than expected order growth in Q1, driven largely by the uncertainty of the macro environment and currency impacts. Despite these headwinds, I believe we are executing very well. We are moving very fast to capture new opportunities and I feel good about how we are positioned for the second half of the year,” added Robbins.

Product revenue increased by 4 percent and service revenue increased by 1 percent. Total revenue by geographic segment was: Americas up 4 percent, and each of EMEA and APJC up 3 percent. Product revenue growth was led by data center and collaboration at 24 percent and 17 percent respectively. Wireless and security each grew 7 percent, switching grew 5 percent, NGN Routing decreased 8 percent, and service provider video decreased 2 percent.

Non-GAAP operating expenses were $4.1 billion, down 1 percent, and at 32.7 percent of revenue. Headcount increased from the fourth quarter of fiscal 2015 by 230 to 72,063, reflecting additional headcount from acquisitions and investments in key growth areas such as security, cloud and software. On a GAAP basis, operating expenses were $4.8 billion, down 5 percent.

Non-GAAP operating income was $3.9 billion, up 8 percent, with non-GAAP operating margin at 30.5 percent. GAAP operating income was $3.1 billion, up 31 percent, with GAAP operating margin of 24.3 percent.

Deferred Revenue was $15.2 billion, up 10 percent in total, with deferred product revenue up 16 percent, driven largely by subscription based and software offerings, and deferred service revenue up 7 percent. Cisco continued to build a greater mix of recurring revenue as reflected in deferred revenue.

“We delivered a strong first quarter as we executed on our financial model of driving profitable growth, managing our portfolio and delivering shareholder value,” said Kelly Kramer, executive vice president and chief financial officer, Cisco.

“Despite a challenging environment, we are executing very well and making the right investments that position us for future growth. We are continuing our commitment to shareholders as we returned $2.3 billion of our free cash flow back through dividends and share repurchases in Q1,” added Kramer.

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Tata Communications Posts Rs 6.02 Cr Net Profit In Q2

vinod kumar

Tata_CommunicationsTata Communications today announced its financial results for the second quarter and posted Rs 6.02 crore net profit in Q2 FY2016.

The company’s consolidated revenue stood at Rs 5,130.1 crore, up 1.2 percent Y-o-Y. Consolidated EBITDA stood at Rs 772 crore up 1.8 percent Y-o-Y and resulting in EBITDA margin of 15 percent.

Consolidated revenue for H1 FY2016 stood at Rs 10,309.9 crore, up 1.2 percent Y-o-Y. Consolidated EBITDA at Rs 1,507.2 crore, up 2.4 percent Y-o-Y and resulting in EBITDA margin of 14.6 percent.

Core business reported its strongest quarterly performance in terms of normalised operating profitability. Q2 FY16 core business revenues increased by 3.6 percent while EBITDA was up 15.5 percent Y-o-Y. Q2 FY16 core business PAT was at Rs 33.4 crore, up 9.7 percent Y-o-Y.

Data business continued its upward trajectory with a strong, broad-based growth with an uptake in solution led offerings across various industries. Q2 FY16 data revenue increased by 16.9 percent Y-o-Y and EBITDA margin for the corresponding business stood at 19.2 percent.

Transformation services for carriers, new business models in the media and entertainment industry, growth in the data centre business, VPN connectivity and internet transit have been the key drivers for growth.

The enterprise segment continues to witness strong impetus with healthy Y-o-Y growth across Forbes 2000, ET 500 and Next-gen customers. Tata Communications’ brand equity, an indispensable element in the enterprise segment continues to benefit from the recent Heathrow Express branding campaign as well as recent wins. The service provider (carrier) segment has also seen improved momentum especially in the media and entertainment industry.

Voice business net revenues during Q2 were up 9 percent Y-o-Y and voice segment EBITDA margin stood at 8.3 percent.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications said, “We are encouraged by the upswing in customer demand globally. As one of the leading global providers of network services, we continue to focus on creating the right partner ecosystems and transformational services such as cloud and mobility for our customers.”

Commenting on the results, Pratibha K Advani, CFO, Tata Communications said, “Our results are indicative of our resilient and transformative business model. Both, the voice and data businesses have continued to generate free cash flow in-line with our expectations.”

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Bharti Infratel Q2 Net Profit Rises 25% to Rs 579 Cr


Bharti-Infratel-Q2-Net-Profit-Rises-25%-To-Rs-579-CrBharti Infratel second quarter net profit increased 25 percent to reach Rs 579 crore whereas consolidated revenue increased 4 percent to reach Rs 3,038 crore.

Consolidated EBITDA improved to Rs 1,308 crore up 7 percent, representing an operating margin of 43.1 percent and consolidated EBIT at Rs 734 crore, witnessed a 9 percent Y-o-Y growth.

Akhil Gupta, chairman, Bharti Infratel said, “Mobile data is going to be the key pillar of growth for the India telecom industry. We are already witnessing clear signs of accelerated 3G and 4G rollouts by the operators with multi-fold increase in such installations as compared to last year. In addition, the sector is also seeing increased focus on quality of service and a possible utilization of unused spectrum. These trends are positive for tower companies and we are fully geared to meet the resultant additional requirements of the telecom industry.”

In the second quarter, Bharti Infratel added 787 towers taking its overall tally to 87,184. The company increased its tenancy ratio from 2.13 to 2.15.

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Ericsson Reports 3% Growth In Q3, Thanks To Professional Services

Hans Vestberg, president and CEO, Ericsson

Ericsson today reported 3 percent growth in YoY sales thanks to the growth in professional services.

Sales, adjusted for comparable units and currency, decreased by 9 percent due to lower sales in networks and this was partly offset by sales growth in professional services.

Hans Vestberg, president and CEO, Ericsson said, “Sales growth remained strong in India as well as in South East Asia and Oceania compared to the same period last year, while sales declined in North East Asia as well as in Northern Europe and Central Asia.”

“In the quarter, there was a slowdown of the 4G deployments in Mainland China. We also saw a somewhat slower pace of mobile broadband investments in markets such as Russia, Brazil and parts of the Middle East which had a weak macro added Vestberg.

Professional Services sales increased by 15 percent YoY, with double-digit growth in eight out of ten regions, driven by strong performance across the portfolio.

Operating income, excluding restructuring charges, increased by 46 percent YoY with improvements in all segments. The main contributors to the profit improvement were lower operating expenses and a break-even result in network rollout. The negative effect of revaluation and realization of currency hedge contracts was lower than a year ago.

The global cost and efficiency program, with the target to achieve annual net savings of SEK 9 billion during 2017, is progressing according to plan.

The strategic growth initiatives build on a combination of excelling in core business and establishing leadership in targeted growth areas are seeing good progress and had a sales growth of more than 10 percent YoY.

There is an increased customer interest in future network architecture for 5G, virtualization, efficient video delivery and internet of things (IoT).

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Bharti Airtel Q1 Profit Jumps 40%; Mobile Data Grows 57%


Bharti-Airtel-Ist-Quarter-2016-Profit-Jumps-40-Percent;-Revenue-Grows-3-Percent son-For-LTEBharti Airtel Q1, 2016 profit jumped 40 percent to reach Rs 1,554 crore whereas revenue grew by 3.1 percent to reach Rs 23,671 crore.

Airtel’s consolidated mobile data revenues at Rs 3,459 crore grew by 56.9 percent, thanks to data traffic growth of 86.5 pecent.

India revenues reported a growth of 10 percent Y-o-Y, led by 22.2 percent in airtel business and 15.8 percent in Digital TV. Mobile data revenue at Rs 2,609 crore registered a growth of 67.3 percent Y-o-Y in India, uplifted by increase in the data customer base by 25.8 percent and traffic by 83.4 percent.

Data ARPU has moved up by Rs 42 to Rs 181 in Q1 2016, led by 42.7 percent increase in data usage per customer. Mobile data revenues contribute to 19.2 percent of mobile India revenues vis-a-vis 12.4 percent in the corresponding quarter last year.

In constant currency terms, Africa revenues grew by one percent Y-o-Y. Data revenues stood at $128 million with growth of 48.5 percent Y-o-Y, led by increase in data customer base by 31.9 percent and traffic by 111.6 percent.

Data ARPU increased to $3.3 from $3 in the corresponding quarter last year. Data revenues contribute to 12.9 percent of overall Africa revenues vis-à-vis 8.8 percent in the corresponding quarter last year.

Active Airtel Money customer base increased to 7 million, boosting the total transaction values on Airtel Money platform by 72.6 percent to $3.3 bilion.

Consolidated EBITDA at Rs 8,262 crore grew by 6.4 percent Y-o-Y with EBITDA margin expanding by 1.1 percent to 34.9 percent, driven by India‟s margin expansion by 2.1 percent Y-o-Y. The resultant consolidated EBIT of Rs 4,216 crore represents a Y-o-Y growth of 14.2 percent, with EBIT margin improving by 1.7 percent.

The company‟s consolidated net debt excluding the deferred payment liabilities to the DoT and finance lease obligations is now at $7.64 billion. During the quarter, tower disposals to the tune of $1.34 billion were closed.

Gopal Vittal, MD and CEO, India & South Asia said, “The year has begun on a healthy note, with underlying revenue growth accelerating to 12.7 percent in India. Our customer base has continued to steadily expand. Mobile minutes and data traffic have grown by 7.4 percent and
83.4 percent respectively. I am pleased that our revenue growth is broad based across all business units, especially the domestic enterprise & corporate segment, which saw revenues grow by 18.1 percent, and DTH business which had a underlying topline growth of 26.8 percent. Our capex programme is mostly directed at increasing 3G/4G coverage and improving all-round customer experience.”

Christian de Faria, MD and CEO, Africa said, “In the first quarter, Airtel Africa has set the pace for the year, with customer base growing by 13.4 percent to 78.3 million. Customer churn has been reduced from 7 percent to 5.4 percent as a result of customer lifecycle management programmes. Minutes grew by 16 percent, while data volumes have more than doubled. The data customer penetration at 16.6 percent reflects the untapped potential in the internet space. I am particularly delighted to report that 7.0 million Airtel Money customers are transacting more than $1 billion of money every month.”

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HFCL Q1, 2015 Profit Jumps 62 Percent


HFCL-Q1,-2015-Profit-Jumps-62-PercentHimachal Futuristic Communications (HFCL) Q1, 2015 profit jumped 62 percent to reach Rs 112.4 crore as compared to Rs 69.5 crore in the corresponding quarter of previous fiscal.

HFCL is an integrated telecom solutions provider engaged in manufacturing of telecom equipments and optical fibre cables, executing telecom turnkey contracts and providing services announced net sales at Rs 625.37 crore, as compared to Rs 618.82 crore in the corresponding quarter of previous fiscal.

The company’s earnings before interest, tax, depreciation and amortization (EBIDTA) rose by 4.3 percent to Rs.91.54 crore in Q1, FY16, as compared to Rs 87.77 crore in the corresponding quarter of the previous fiscal. The earnings per share (EPS) for the first quarter of FY16 increasing to Rs 0.90 from Rs 0.55 in the corresponding quarter of previous fiscal.

The company has seen a rise in exports by 255 percent to Rs 32 crores as compared to the first quarter of the previous year. The expected turnover from exports in FY16 is Rs 100 crores. The total order book as of today stands around Rs 3,000 crores.

Commenting on the company’s performance during the first quarter of FY16, Mahendra Nahata, managing director, HFCL said, “In the last four years HFCL has grown almost 10 times in revenue, 17 times in profit, and we are confident of a significant growth in the current financial year. The positive movements in the current order book, combined together with the upcoming opportunities is indicative of the same.”

“Such strong growth has been possible due to high demand of optical fibre cables and turnkey projects. A growth of 255 percent in exports added to our positive outlook of further growth in exports which is going to be key thrust area going forward. Due to cost control and efficient raw material purchase, we have seen improvement in margins,” added Nahata.

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Alcatel-Lucent Q2 Revenue Up 5%

Michel Combes – Altice
Michel Combes, CEO, Alcatel-Lucent

Alcatel-Lucent second quarter 2015 revenue was up by 7 percent whereas net income was better at EUR -54 million from EUR -298 million in Q2, 2014.

Positive free cash flow of Euro 65 million, marking the first Q2 of positive free cash flow since the Alcatel-Lucent merger in 2006, improving by Euro 270 million compared to the year-ago quarter. Free cash flow before restructuring of Euro 158 million, up Euro 248 million compared to the year-ago quarter.

Group revenues, excluding managed services and at constant perimeter, increasing 6 percent year-on year. At constant exchange rates, group revenues, excluding managed services and at constant perimeter, were down 8 percent. The weight of next-generation activities continued to progress, representing 76 percent of revenues compared to 70 percent in the year-ago quarter.

Commenting on the results, Michel Combes, CEO, Alcatel-Lucent said, “Our second quarter 2015 results represent a significant milestone for Alcatel-Lucent, reflecting the first Q2 of free cash flow generation since the merger of Alcatel and Lucent in 2006. Alcatel-Lucent’s financial results for the first half of 2015 clearly show that the company has delivered on the key objectives of The Shift Plan, launched two years ago. The company is now well on track to complete its turnaround by the end of the year.

Core Networking segment revenues were Euro 1,675 million in Q2 2015, up 22 percent year-over-year at actual rates. IP Routing revenues were Euro 659 million in Q2 2015, an increase of 17 percent at actual rates.

The business witnessed double-digit growth in EMEA and CALA, resilience in North America and declines in APAC driven by a continued spending pause in Japan. Revenues from non-telco customers grew at a double-digit pace year-over-year, at constant exchange rates, reflecting the continued progress in our market diversification strategy.

IP Transport revenues were Euro 630 million in Q2 2015, up 30 percent at actual rates. Terrestrial optics revenues showed strong double-digit growth at constant rates, as WDM witnessed strength in EMEA, CALA and APAC. The cyclical upswing continued in our submarine business, as revenues grew more than 40 percent at constant rates and our pipeline grew with new awards and contracts signed.

IP Platforms revenues were Euro 386 million in Q2 2015, a year-on-year increase of 19 percent at actual rates. The business was driven by IMS for VoLTE, which witnessed strong traction in North America and benefited from geographic expansion into other regions. This was partially offset by declines in Policy and Charging and SDM, which had difficult year-over-year comparisons, and the tail-end of the phase out of legacy businesses.

Access segment revenues were Euro 1,772 million in Q2 2015, a decrease of 7 percent year-over-year at actual rates. In Q2 2015, segment operating income was Euro 23 million, compared to a segment operating income of Euro 11 million in Q2 2014, reflecting improvements from both wireless and managed services, in addition to continued double-digit margin contribution from Fixed Access.

Wireless Access revenues were Euro 1,148 million, a year-on-year decrease of 12 percent at actual rates. Marked by a difficult comparison base in the year-ago quarter, the sales decline was driven by lower spending in the US and project timing in China.

Fixed Access revenues were Euro 548 million in Q2 2015, an increase of 5 percent compared to the year-ago quarter at actual rates. Traction with fiber and next generation products continued in APAC with China returning to growth, but was offset by declines in EMEA and the continued spending pause in North America.

North America revenues increased by 2 percent at actual rates year-over-year. Europe witnessed improving trends, with revenues increasing 9 percent year-over-year, driven by positive momentum in IP Transport and IP Routing. Asia Pacific posted a 3 percent year-over-year increase in revenues at actual rates, mainly reflecting project timing in China related to wireless access and continued weakness in Japan, partially compensated by growth in South-east Asia, Australia and India. In Rest of World, revenues increased 11 percent year-over-year, as double-digit growth in CALA was partially offset by declines in MEA.

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Facebook Q2 Net Income Down 9%; Revenue Up 39%

Mark Zuckerberg, founder and CEO, Facebook

Facebook second quarter net income was down by 9 percent whereas revenue was up by 39 percent.

The net income was $719 million in Q2, 2015 vis-a-vis $791 million in in Q2, 2014 whereas revenue was $4.04 billion in Q2, 2015 vis-a-vis $2.9 billion in Q2, 2014. Mobile advertising contributed $3.8 billion whereas payment and other fees contributed $215 million.

In terms of geographic break-up, US & Canada contributed $1.97 billion, Europe contributed $1 billion, Asia-Pacific generated $623 million and RoW contributed $415 million.

“This was another strong quarter for our community,” said Mark Zuckerberg, founder and CEO, Facebook.

“Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services,” added Zuckerberg.

Facebook Second Quarter 2015 Highlights
Daily Active Users (DAUs) were 968 million on average for June 2015, an increase of 17 percent year-over-year
Mobile DAUs were 844 million on average for June 2015, an increase of 29 percent year-over-year
Monthly Active Users (MAUs) were 1.49 billion as of June 30, 2015, an increase of 13 percent year-over-year
Mobile MAUs were 1.31 billion as of June 30, 2015, an increase of 23 percent year-over-year
More than 40 million small and medium-size businesses are using Facebook pages for advertisement
Source: Facebook

Cash and cash equivalents and marketable securities were $14.13 billion at the end of the second quarter of 2015 whereas free cash flow for the second quarter of 2015 was $1.33 billion.

Mobile advertising revenue represented approximately 76 percent of advertising revenue for the second quarter of 2015, up from approximately 62 percent of advertising revenue in the second quarter of 2014. Capital expenditures for the second quarter of 2015 were $549 million.

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Nokia Q2 Net Sales Jumps 9 Percent

Nokia-Q2-Net-Sales-Jumps-9 Percent
Rajeev Suri, president & CEO, Nokia

Nokia net sales in Q2, 2015 was up by 9 percent to reach EUR 3.2 billion vis-a-vis EUR 2.9 billion in Q2, 2014. Net sales was down by 1 percent on a constant currency basis.

Nokia Networks achieved 6 percent year-on-year net sales growth primarily driven by an elevated level of software sales within mobile broadband and strong performance across global services.

In the second quarter 2015, mobile broadband represented 51 percent of Nokia Networks net sales, compared to 53 percent in the second quarter 2014 and 52 percent in the first quarter 2015. In the second quarter 2015, global services represented 49 percent of Nokia Networks net sales, compared to 46 percent in the second quarter 2014 and 48 percent in the first quarter 2015.

Global services net sales increased 12 percent year-on-year in the second quarter 2015, primarily due to growth in the network implementation, care, network planning and optimization. The network planning and optimization and systems integration delivered particularly strong percentage growth on a year-on-year basis, consistent with ongoing focus on services-led and professional services business. Mobile broadband net sales increased 3 percent year-on-year in the second quarter 2015, primarily due to growth in overall radio technologies, with particular strength in LTE.

HERE achieved 25 percent year-on-year growth in net sales, with 24 percent growth in new vehicle licenses for embedded navigation systems whereas Nokia Technologies accomplished 31 percent year-on-year growth in net sales primarily due to higher intellectual property licensing income from existing and new licensees and non-recurring net sales.

Nokia’s operating profit increased 42 percent year-on-year in the first six months of 2015, primarily due to an increase in operating profit in Nokia Technologies and Group Common Functions and, to a lesser extent, in HERE. This was partially offset by a decrease in operating profit in Nokia Networks.

Speaking on the results, Rajeev Suri, president and CEO, Nokia said, “I am particularly pleased by Nokia Networks, which delivered improved performance overall, despite a year-on-year decline in net sales on a constant currency basis. Software sales were up significantly, core networking sales improved, we saw a reduced impact of strategic entry deals, global services had one of its best quarters in the history of the company and costs remained well under control.”

In Asia-Pacific, net sales decreased 7 percent, primarily driven by lower mobile broadband net sales, partially offset by a slight increase in global services net sales. The overall decline in Asia-Pacific was primarily due to lower net sales in Japan, Indonesia and South Korea, partially offset by higher net sales in India and Myanmar.

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