Bharti Infratel Q1 Net Profit Up By 71%


Bharti-Infratel-Q2-Net-Profit-Rises-25%-To-Rs-579-CrBharti Infratel posted its first quarter results on Tuesday and the company’s net profit has grown by 71% on a yearly basis.  For the June quarter the company registered net profit of Rs 756 crore as compared to Rs 442 crore for the same period a year ago.

This unusual growth can be attributed to the increase in the tenancy ratio during the period as operators rented more site to improve coverage.

The consolidated revenue of Bharti Infratel rose 7% to touch Rs 3211 crore compared to Rs 3003 crore in Q1 of 2015. At the end of the fiscal quarter, the company’s operating free cash flow stood at Rs 958 crore versus Rs 797 crore for the same period lasst year showing an improvement of 20%.

Both Ebit and Ebitda have also improved during this quarter. While Ebit improved 11% to reach Rs830 crore as against Rs 745 crore in Q2 of 2015, the Ebitda of country’s sole listed tower company was up by 9% from Rs 1408 crore in Q1, 2016 from Rs 1295 crore the compared period of previous fiscal.

“Indian Telecom industry is going through consolidation, we believe this would be good for the industry in the long run as the sector would require large investments by the operators in future to cater to the ever increasing data demand,” said Akhil Gupta, Chairman, Bharti Infratel.

“We are also seeing some early signs of implementation of the Government’s initiative on Smart City which we believe would provide opportunities to infrastructure companies like ours. Bharti Infratel and Indus Towers being the leaders are fully geared to serve our customers’ demand and to look at the new opportunities coming up on the infrastructure front,” he added.

read more

Vodafone Q3 Revenue Up 2.6 Percent Reaches £10.3 billion


Vodafone-Q3-Revenue-Up-2.6-Percent-Reaches-£10.3-BnVodafone Group Q3 total revenue was up 2.6 percent to reach £10.3 billion.

Vodafone Group service revenue was £9.2 billion and was up by 1.4 percent. Total revenue declined 5.5 percent, including a 0.2 percentage point negative impact from M&A, and a 7.9 percentage point negative impact from foreign exchange rate movements. On an organic basis Group service revenue increased 1.4 percent and, excluding the impact of mobile termination rate (‘MTR’) cuts, Group service revenue grew 2.1 percent.

Total revenue for Vodafone Europe declined 6 percent, including a 0.1 percentage point favorable impact from M&A and a 6.7 percentage point adverse impact from foreign exchange movements.

Vodafone now have 28.1 million 4G customers across Europe, 3.8 million of which were added during the quarter, and total data usage grew 60 percent year-on-year. Fixed service revenue grew 3.7 percent, driven by strong consumer broadband customer growth, particularly in high speed fibre and cable services which grew by 379,000 to 5.9 million in the quarter.

Vodafone India service revenue increased by 2.3 percent with the quarterly growth rate slowing due to further competitive pressure, impacting both voice and data prices and data customer growth. Excluding the impact of regulatory changes, including MTR cuts, roaming price caps and an increase in service tax, service revenue grew by 7.6 percent.

Total revenue for AMAP declined 3.5 percent, including a 10.9 percentage point adverse impact from foreign exchange movements. Service revenue in AMAP increased 6.5 percent, sustaining its strong track record of organic service revenue growth.

The main drivers behind this performance are customer growth, with 6.3 million customers added in the quarter, and strong demand for mobile voice and data services. Across the region voice and data usage increased 8 percent and 78 percent respectively, and the number of data users increased by 17 percent year-on-year to 128.7 million.

We have continued to make very good progress on Project Spring and are now nearing the end of the deployment phase having completed 92% of the mobile build. We have added 165,000 mobile sites, modernised 102,000 sites, and upgraded 91,000 sites to high capacity backhaul since the project began. In AMAP, our mobile build targets have already been achieved 3 months ahead of target.

Our Enterprise business has grown for the fourth consecutive quarter, with service revenue up 2.6 percent, supported by continued growth in mobile and an acceleration in fixed trends.

As part of Project Spring we have continued to invest in our global IP-VPN network and are present in 65 countries with 259 Points of Presence (‘PoPs’). Our market leading M2M services are now available in 29 markets.

The performance of the Group remains in line with management’s expectations. We therefore expect EBITDA to be in a range of £11.7 billion to £12.0 billion, and free cash flow to be positive after all capex, and before the impact of M&A, spectrum purchases and restructuring costs. Total capex is expected to be between £8.5 billion to £9.0 billion.

read more

Ericsson’s 2015 Sales Grows 8 Percent Thanks To Chindia

Ericsson – Hans Vestberg
Hans Vestberg, president and chief executive officer, Ericsson, receives the 2016 Hunger Hero Award

Ericsson’s 2015 full year sales has grown by 8 percent to reach SEK 247 billion thanks to sales growth in India, North America and China.

India continues to be the top third country with 5% contribution to overall net sales in the FY15. Full year sales for India grew by percent over the previous year whereas year on year growth for India in Q4 is 34 percent.

The reported Q4 sales increased by 8 percent YoY to reach SEK 73.6 billion. In North America, mobile broadband investments remained stable, with additional hardware sales in the quarter. 4G deployments in Mainland China recovered after a weak third quarter.

The global cost and efficiency program is progressing according to plan, contributing to lower operating expenses YoY. Operating margin increased to 15 percent YoY with improvements in all segments.

Full year sales growth in India, North America and China as well as higher IPR licensing revenues were partly offset by lower sales in Japan, Russia and Brazil. Sales, adjusted for comparable units and currency, decreased by -5 percent.

Operating income, excluding restructuring charges, increased to SEK 26.8 billion with improvements in all segments. Cash flow from operating activities was SEK 20.6 billion and cash conversion was 85 percent.

The board of directors will propose a dividend for 2015 of SEK 3.70 per share, an increase of 9 percent compared to last year.

Hans Vestberg, president and CEO, Ericsson said, “Reported sales in the quarter increased by 8 percent YoY. Sales, adjusted for comparable units and currency, decreased by -1 percent. Sales in North America grew YoY as well as QoQ. Profitability improved YoY, with higher IPR licensing revenues and lower operating expenses as main contributors. Network Rollout continued on its path to sustainable profitability.”

We saw a recovery in Networks in the quarter. In North America, the mobile broadband investments remained stable, with additional hardware sales in the quarter. 4G deployments in Mainland China recovered after a weak third quarter.

Emerging markets such as India, Indonesia and Mexico remained strong while markets such as Russia, Brazil and parts of the Middle East continued to be weak, mainly due to macro-economic developments.

Investments in Europe were driven by the transition from 3G to 4G and capacity enhancements. Operators increased their investments in telecom core networks, driven by deployment of new service offerings such as VoLTE (Voice over LTE).

In the quarter, sales growth in Global Services was mainly driven by growth in systems integration and managed services while network rollout sales declined.

We ended the year with good YoY sales development in TV and Media which contributed to growth in Support Solutions.

Ericsson’s IPR strategy has been successful over the last five years as we have more than tripled our IPR licensing revenues. After the recent announcements of two important patent license agreements, we now have agreements with the majority of handset suppliers.

In 2015, we had good progress in all our targeted growth areas and we continued to invest in order to establish leadership. Sales grew by more than 20 percent YoY, reaching SEK 45 billion, corresponding to 18 percent of group sales.

The strategic partnership with Cisco, announced in the quarter, will give us strong end-to-end network solutions with a complete IP portfolio. As a result of the partnership, we will extend our addressable market and expect to generate $1 billion or more of additional sales by 2018. Additional sales are expected to be accretive to operating income in 2016.

Operating margin increased to 15 percent YoY with improvements in all segments. The major contributors to the profit improvement were higher IPR licensing revenues and lower operating expenses, mainly in networks.

read more

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.

read more

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.

read more

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.”

read more

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.

read more

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).

read more

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.”

read more

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.

read more
1 2 3 4 13
Page 2 of 13