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AT&T Second Quarter Net Income Drops 14%

AT&T

AT&T'-Second-Quarter-Net-Income-Drops-14%AT&T second quarter, 2105 net income dropped by 14 percent. Net income for the quarter was $3 billion compared to net income of $3.5 billion in the year-ago quarter.

AT&T second quarter consolidated revenues was $33 billion, up 1.4 percent versus the year-earlier period reflecting Mexican acquisitions and pressure from foreign exchange and global hubbing exit. AT&T today reported solid second-quarter results with strong adjusted EPS growth, expanding margins and growing free cash flow.

Randall Stephenson, chairman and CEO, AT&T said, “We grew revenues, expanded margins and delivered double-digit adjusted EPS and cash flow growth. We added more than 2 million new wireless subscribers as the repositioning of our smartphone base nears completion. We also began expanding high-quality, high-speed wireless service to Mexican consumers and businesses.

“This is a pivotal time for us. We look forward to closing DIRECTV and building on this momentum by delivering a new TV everywhere experience integrated with mobile and high-speed Internet service,” added Stephenson.

AT&T’s Q2, 2015 Highlights
2.1 million net adds including 410,000 postpaid, 331,000 prepaid and 1 million connected cars
About 1.2 million branded (postpaid and prepaid) smartphones added to base
Completion of Nextel Mexico acquisition
Integration with Iusacell underway
Established plans to own and operate 4G LTE network in Mexico with plans to cover 100 mn POPs
Source: AT&T

Compared with results for the second quarter of 2014, operating expenses were $27.3 billion versus $27 billion; operating income was $5.7 billion versus $5.6 billion in the second quarter a year ago, and operating income margin was 17.3 percent, up slightly from 17.2 percent in the year-ago quarter. When adjusting for merger and integration-related expenses, operating income was $6.5 billion versus $5.8 billion a year ago; and operating income margin was 19.6 percent, up 190 basis points from a year ago.

Cash from operating activities totaled $9.2 billion in the second quarter and $15.9 billion year to date; and capital expenditures totaled $4.7 billion and $8.7 billion year to date. Free cash flow — cash from operating activities minus capital expenditures — totaled $4.5 billion for the quarter and $7.2 billion year to date, an increase over the year-ago quarter even as the company continues to invest in its high-quality network and customers.

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CorporateResults

Huawei’s Consumer Business H1 Revenue Grows By 69%

Huawei Honor 6 Plus

Huawei's-Consumer-Business-H1-Revenue-Grows-By-69% Huawei's Consumer Business Group (BG) first half revenue has grown by 69 percent to reach $9.09 billion. Huawei’s handset business revenue reached $7.23 billion in H1, 2015, recording a year-on-year increase of 87 percent. This outstanding growth was due to Huawei's strategy of focusing on mid-to high-end handsets, which contributed to both the increase in shipments and average selling price. The unit’s sales income represented 32 percent of the total income of Huawei Technologies, up from 24 percent in the same period last year. “This incredible growth is a testament to our core business strategy to offer premium quality products, bringing our expected earnings for 2015 from $16 billion to $20 billion,” said Richard Yu, CEO, Huawei Consumer BG. “Such a remarkable and rapid growth in performance is a result of Huawei’s Consumer BG’s commitment to consumers’ needs and our core strategy of providing innovative hardware technology and software experience. With our consistent and huge investment in R&D, Huawei is set to become one of the key players in the long-run,” added Yu. In 1H 2015, Huawei Consumer BG shipped a total of 48.2 million smartphones, representing a year-on-year increase of 39 percent, while global smartphone demand has only recorded a 7% growth in the same period. Shipment for the mid-to-high end category recorded a year-on-year increase of 70 percent, representing 31 percent of the total handset shipment and 42.9 percent of total income. The income of the mid-to-high end category increases 388 percent while the profit of this category representing 44 percent of the total profit. Huawei’s global strategy continues to stimulate stable business growth in both China and overseas markets. Revenue surged 124 percent year-on-year in China, while some regions recorded more than 40 percent revenue growth. Western Europe, Northeast Europe, South Pacific, North Africa and Middle East recorded 45 percent, 54 percent, 41 percent, 164 percent and 48 percent year-on-year growth respectively. Huawei's high-end smartphone shipment in Italy and Spain achieved year-on-year growth of 293 percent and 448 percent respectively. In H1, 2015, Huawei’s flagship smartphone, Huawei Mate7 shipped a global total of 5 million units with impressive sales in over 100 countries including China, Western Europe, Middle East, South East Asia, and South Pacific, among others. Huawei P7 recorded accumulative sales of 7 million units and was available in over 100 countries and regions. Over one million units of Huawei P8 have been sold in the first two months since launch with availability in over 52 markets including China, France, Spain and ItalyHuawei’s Consumer Business Group (BG) first half revenue in 2015 has grown by 69 percent to reach $9.09 billion.

Huawei’s handset business revenue reached $7.23 billion in H1, 2015, recording a year-on-year increase of 87 percent. This outstanding growth was due to Huawei’s strategy of focusing on mid-to high-end handsets, which contributed to both the increase in shipments and average selling price.

The unit’s sales income represented 32 percent of the total income of Huawei Technologies, up from 24 percent in the same period last year.

“This incredible growth is a testament to our core business strategy to offer premium quality products, bringing our expected earnings for 2015 from $16 billion to $20 billion,” said Richard Yu, CEO, Huawei Consumer BG.

“Such a remarkable and rapid growth in performance is a result of Huawei’s Consumer BG’s commitment to consumers’ needs and our core strategy of providing innovative hardware technology and software experience. With our consistent and huge investment in R&D, Huawei is set to become one of the key players in the long-run,” added Yu.

In 1H 2015, Huawei Consumer BG shipped a total of 48.2 million smartphones, representing a year-on-year increase of 39 percent, while global smartphone demand has only recorded a 7% growth in the same period. Shipment for the mid-to-high end category recorded a year-on-year increase of 70 percent, representing 31 percent of the total handset shipment and 42.9 percent of total income. The income of the mid-to-high end category increases 388 percent while the profit of this category representing 44 percent of the total profit.

Huawei’s global strategy continues to stimulate stable business growth in both China and overseas markets. Revenue surged 124 percent year-on-year in China, while some regions recorded more than 40 percent revenue growth. Western Europe, Northeast Europe, South Pacific, North Africa and Middle East recorded 45 percent, 54 percent, 41 percent, 164 percent and 48 percent year-on-year growth respectively. Huawei’s high-end smartphone shipment in Italy and Spain achieved year-on-year growth of 293 percent and 448 percent respectively.

In H1, 2015, Huawei’s flagship smartphone, Huawei Mate7 shipped a global total of 5 million units with impressive sales in over 100 countries including China, Western Europe, Middle East, South East Asia, and South Pacific, among others. Huawei P7 recorded accumulative sales of 7 million units and was available in over 100 countries and regions. Over one million units of Huawei P8 have been sold in the first two months since launch with availability in over 52 markets including China, France, Spain and Italy.

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CorporateInternationalNewsResults

Qualcomm Q3 Profit Down by 47%; Plans Restructuring

qualcomm

Qualcomm-Q3-Profit-Down-By-47%;-Plans-RestructuringQualcomm announced Q3 profit of $1.2 billion, down by 47 percent vis-a-vis Q3, 2014 profit of $2.2 billion.

The third quarter fiscal revenue for Qualcomm was $5.8 billion which was down by 14 percent in comparison to Q3, 2014 revenue of $6.8 billion. With revenues coming down, Qualcomm has announced a Strategic Realignment Plan designed to enhance financial performance and drive profitable growth.

“Our fiscal third quarter revenues, MSM chip shipments and EPS were within prior expectations, and we took a significant step towards our increased capital return commitments through the initiation of a $5 billion accelerated share repurchase as part of our plan to repurchase an additional $10 billion in stock by March 2016,” said Steve Mollenkopf, CEO, Qualcomm.

“During the quarter, we also launched a comprehensive review of our cost structure and announced today a Strategic Realignment Plan designed to improve execution, enhance financial performance and drive profitable growth. Importantly, the changes we are announcing today are designed to enable us to right-size our cost structure and reposition Qualcomm for improved financial and operating performance,” added Mollenkolf.

During the third quarter of fiscal 2015, Qualcomm returned $6.2 billion to stockholders, including $5.4 billion through repurchases of 63.7 million shares of common stock (which includes the 57.7 million shares initially delivered under the $5 billion accelerated share repurchase agreements (ASR Agreements)) and $757 million, or $0.48 per share, of cash dividends paid.

The Strategic Realignment Plan will help in cost reduction and help in reducing annual costs from fiscal 2015 levels of $7.3 billion (adjusted for variable compensation) by Qualcomm Announces Third Quarter of approximately $1.1 billion through a series of targeted reductions that will not jeopardize our growth objectives or core technology roadmap.

The Strategic Realignment Plan will focus on: Right-sizing the cost structure by eliminating approximately $1.4 billion in spending, including an approximately $300 million reduction in annual share-based compensation grants; reviewing alternatives to the company’s corporate and financial structure; reaffirming company’s plan to return significant capital to stockholders; aligning executive compensation with performance, including returns on investment; and disciplined investment in areas that further Qualcomm’s leadership positions, build upon the company’s core technologies and capabilities and offer attractive growth opportunities and returns.

Qualcomm also plans to reduce annual share-based compensation grants by approximately $300 million and expect these cost initiatives to be fully implemented by the end of fiscal 2016. In connection with this plan, we expect to incur approximately $350 million to $450 million in restructuring and restructuring-related charges, of which approximately $100 million to $200 million is included in our fourth quarter fiscal 2015 GAAP EPS guidance.

Qualcomm has reduced QCT Outlook in the fiscal fourth quarter compared to the prior expectations driven primarily by factors impacting premium-tier demand. The increased concentration within the premium tier is causing reduced demand for certain OEM devices that include chipset, lower demand for our premium-tier chipsets from a vertical customer and lower sell through in China of certain handset models using our premium-tier chipsets.

For QTL, the company expects global 3G/4G device shipments to be approximately 1.52 billion to 1.6 billion for calendar year 2015. The company is not providing any forecast for calendar year 2015 for 3G/4G device shipments.

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CorporateNationalNewsResults

Bharti Infratel Q1 Net Up By 24%

bharti-infratel

Bharti-infratel-resultsBharti Infratel, the telecom tower arm of Bharti Airtel, today posted net profit of Rs 576 crore for first quarter of 2015 ended June 30 compared to Rs 463 crore for the same period a year back, showing a growth of 24%. The consolidated revenue for Q1 was clocked at Rs 3016 crore as against Rs 2843 crore registering 6% growth over the same period.

Registering a upward movement, the consolidated EBIDTA was registered at Rs 1302 crore, that the company says, represents and operating margin of 43%. At the end of the first period Bharti Infratel has an operating free cash flow of Rs 783 crore, up by 21% from the same quarter a year ago.

By the end of June 2015, Bharti Infratel has 86397 telecom towers as against 85892 a year ago.

Early this week there were reports that the company is in active talks with Idea Cellular and Vodafone to acquire their tower assets. It was also speculated that Bharti Infratel is ready to invest $1.3 bn to close this deal. However, there has been no official announcement from neither of the companies regarding the same.

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CorporateNationalNewsResults

Uninor Narrows Q2 Net Loss By 47%, Adds 1.3 Mn Subscribers

uninor-facebook

Uninor-revenueTelenor’s Indian arm Uninor has narrowed down its net loss by 47% for the second quarter of 2015 compared to the same period previous year. For Q2 2015, Uninor recorded a loss of Rs 70 crore compared to Rs 133 crore a year back. In Norwegian currency, the same corresponds to 90 NOK and 170 NOK respectively.

The company posted a revenue of Rs 1064 crore for second quarter of 2015 compared to Rs 797 crore for the same period of 2014 registering a growth of 28.48%.

In a significant development at the company, Uninor posted a positive EBIDTA of Rs 187 crore compared to a loss of Rs 827 crore for the same period a year ago.

‘As a result of increased revenues and improved gross margin following the mobile termination rate cut, the Indian operation delivered a positive EBIDTA for the full quarter,” the company said.

During the period, the company added close to 1.3 million subscriber bases however its ARPU has dropped 12% to reach Rs95.

“The decline was primarily driven by lower voice consumption and the impact from reduced interconnect charge,” the company said in a statement.

However, the company said it has seen surge in data consumption in its networks.

“We retain our focus on Internet for All as well as operational efficiency as stated in our strategy. We have made significant investments in data networks and data usage is growing rapidly. Successfully monetising this exponential growth in data will be a key priority for us going forward. This also includes developing our current digital positions within Internet of Things, online classifieds and financial services,” Jon Fredrik Baksaas, president and CEO of Telenor Group, said in a statement.

 

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CorporateResults

ZTE Forecast Bumper Net Profit in H1, 2015

zte-grand-memo-lte3

ZTE-Forecast-Bumper-Net-Profit-in-H1,-2015ZTE expects the company to report a 43 percent increase in net profit for the first six months as a result of stronger sales of 4G LTE network systems.

ZTE’s revenue is projected to increase 21.9 percent to RMB 45.94 billion in the first six months as a result of strong FDD-LTE and wireline systems orders, in addition to new smart city deployments.

Operating revenue is projected to increase 21.9 percent to RMB 45.94 billion in the first half, from a year earlier. First-half operating profit is expected to grow 132 percent.

In the first half, ZTE increased revenue from sales of FDD-LTE network systems, in addition to wireline switch and access systems, while contract profitability improved. Revenue in the enterprise and Government ICT Solutions division also posted growth, driven by new smart city deployments and higher sales to rail operators.

Expenses of the Group for the reporting period as a percentage of operating revenue remained largely unchanged as compared to the same period of the previous year.

The increase in research and development costs as a percentage of operating revenue was mainly attributable to the ongoing increase in the Group’s R&D investment in products such as LTE, bearer network, SDN and GPON to support long-term development.

Meanwhile, selling and distribution costs and administrative expenses as a percentage of operating revenue decreased year-on-year following enhanced cost management by the Group.

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CorporateInternationalNewsResults

Apple Q3 Net Profit Jumps 39%

Apple_iPhone 6

Apple-Q3-Net-Profit-Jumps-39%Apple has reported a record net profit growth of 39 percent to reach $10.7 billion in Q3, 2015 ended June 27, 2015.

The company posted a quarterly revenue of $49.6 billion in the third quarter compared to revenue of $37.4 billion in year ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

The growth was fueled by record third quarter sales of iPhone and Mac, all-time record revenue from services and the successful launch of Apple Watch.

“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, CEO, Apple.

“The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall,” added Cook.

“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, CFO, Apple.

“We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program,” commented Maestri.

For the fourth quarter, Apple has given a revenue guidance between $49 billion and $51 billion, gross margin between 38.5 percent and 39.5 percent and operating expenses between $5.85 billion and $5.95 billion.

Apple’s board of directors has declared a cash dividend of $0.52 per share of the company’s common stock. The dividend is payable on August 13, 2015, to shareholders of record as of the close of business on August 10, 2015.

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CorporateNationalNewsResults

Idea Cellular Q1 Net Profit Jumps 28%; Plans 4G in 2016

Idea Cellular

Idea-Cellular-Q1-Net-Profit-Jumps-28%-;-Plans-4G-in-2016Idea Cellular has done extremely well on Q1 net profit as it has jumped by 28 percent to reach Rs 930.8 crore. On a standalone basis, net profit grew by 29.4 percent to reach Rs 840.1 core vis-a-vis Rs 649.5 crore in FY 2015.

Idea Cellular is planning to introduce 4G LTE services on 1800 MHz spectrum in a phased manner from calendar 2016 onwards in Kerala, Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana, North East, Tamil Nadu and Orissa circles.

To give 4G a big push, the company is also in the process of revisiting its value added services offering and intends to introduce its own range of ‘Digital Services’ across categories like entertainment, information, communication, utilities and API services etc. in next financial year. The company is also slated to launch its Kolkata 3G services by end of this calendar year.

Idea starts the new financial year with 16.4 percent YoY growth in gross revenue in Q1FY16 at Rs 8,796.5 crore. On the sequential quarterly basis the gross revenue has grown by 4.5 percent in Q1FY16.

The voice rate realisation remained under pressure and fell sharply by 11.2 percent to 32.9p/min, including the impact of TRAI regulation changes and increase in service tax rate, but the elasticity of demand compensated the rate decline with 18.5 percent minute growth in Q1FY16 vs Q1FY15.

The net mobile data customer base has risen in this quarter by 3.7 million to 37.2 million, with 22.9 percent of overall Idea subscriber base using Idea 2G or 3G platform to access internet.

The 3G subscriber base for the company has grown by more tha 90 percent over last one year, with addition of 7.9 million new 3G data customers, now servicing overall 16.7 million 3G data customers. Over last one year, 3G data volume growth led the growth of overall Mobile data traffic (2G+3G) by nearly 1.9 times from 32.5 million Megabytes in Q1FY15 to 62.7 million Megabytes in Q1FY16.

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CorporateResults

Ericsson Q2 Reports 11% Revenue Growth

Ericsson

Ericsson-Q2-Reports-11%-Revenue-GrowthEricsson’s second quarter Revenue increased by 11 percent YoY whereas sales, adjusted for comparable units and currency, decreased by -6 percent YoY.

The mobile broadband business in North America stabilized in the quarter, but remained at a lower level than a year ago. Professional Services continued to deliver strong sales growth YoY. Sales in segment Networks recovered and showed a growth QoQ of 18 percent.

The global cost and efficiency program is progressing according to plan and restructuring charges in the quarter were SEK 2.7 (0.2) billion, mainly related to the reductions in Sweden.

Hans Vestberg, president and CEO, Ericsson said, “Reported sales increased by 11 percent. Sales, adjusted for comparable units and currency, decreased by -6 percent YoY, mainly impacted by less capacity business in North America. Profitability improved sequentially, driven by a strong development in segment Networks.”

The mobile broadband business in North America stabilized in the quarter, but remained at a lower level than a year ago. The YoY decline in North America was partly offset by an increased pace of 4G deployments in Mainland China. Sales growth was strong in the Middle East, India and South East Asia, while it continued to be weak in Japan. Professional Services sales increased YoY with continued strong global demand and growth in all ten regions.

The OSS & BSS business had a favorable development YoY, contributing to sales both in Professional Services and segment Support Solutions. Networks sales increased by 18 percent sequentially, supported by the stabilized mobile broadband sales in North America.

Operating income, excluding restructuring charges, increased YoY by almost 50 percent, with improvements in all segments. After a weak first quarter, segment Networks profitability recovered, driven by increased sales and a positive currency hedge effect.

The global cost and efficiency program is progressing according to plan. The target, to achieve savings of approximately SEK 9 billion during 2017 relative to 2014, remains. During the quarter, numerous activities were implemented globally including a reduction of 2,100 positions in Sweden, resulting in higher than normal restructuring charges. Savings related to the activities will start to impact results towards the end of this year.

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CorporateNationalNewsResults

Idea Cellular Q4 Profit Reaches Rs 942 Cr, Jumps 62.6%

Idea Internet Network

Idea-Cellular-Q4-Profit-Reaches-Rs-942-Cr,-Jumps-62.6-%Idea Cellular’s profit for the fourth quarter ending 31st March, 2015 reached Rs 942 crore, a jump of 62.6 percent over Q4, FY14.

On the other hand revenues reached Rs 8,422.5 crore for the fourth quarter. Due to the changes in the TRAI Interconnect regulation effective March 1, 2015, the gross revenue for the quarter Q4, FY15 and for FY15 is negatively impacted by Rs 105 crore, though the impact on EBITDA is minimal.

Idea continues its enviable track record of being amongst the fastest growing mobile operator with 19.1 percent growth in gross revenue in FY15 at Rs 31,554.8 crore, nearly 1.8 times the wireless industry revenue growth rate (CY14).

Idea has clocked 23.5 million net VLR subscriber addition in FY15 against 17.7 million net VLR addition in FY14, now servicing a strong 161.4 million quality consumers across India. Inspite of large subscriber additions, the quality of Idea overall consumer base improved its ARPU to Rs 179 and voice usage per subscriber increased to 400 minutes.

Idea further revised mobile data subscriber definition, eliminating from its reporting all incidental data users of less than 10 MB/Month. The mobile data user (2G+3G) penetration in overall base is now 21.2 percent at 33.4 million data subscribers with blended Mobile data ARPU (2G+3G) at Rs 150 in Q4FY15.

The double bottom line drivers of voice and data business, scale benefits and optimization of cost has helped Idea improve its standalone Profit After Tax (PAT) by 93.9 percent from Rs 1,793.2 crore (Incl. Indus dividend of Rs 83.8 crore) in FY14 to Rs 3,477.2 crore (Incl Indus dividend of Rs 625 crore) this financial year.

At consolidated level including Indus contribution of 16 percent, the company revenue in FY15 has grown by 19.1 percent, consolidated annual EBITDA grew by 30.4 percent to Rs 10,811.8 crore, EBITDA margin improved to 34.2 percent and annual PAT is at Rs 3,192.9 crore, an annual growth of 62.3 percent.

With strong performance, the board of Idea is pleased to recommend increased dividend at 6 percent, an overall payment of Rs 259.8 crore (including dividend distribution tax).

The company doubled its 3G data subscriber base, adding 7.3 million new 3G users in last one year, servicing overall 14.5 million 3G data consumers. During the year, 3G data volume exploded by nearly 2.3 times; from 13.1 billion MB to 30.7 billion MB in Q4, FY15.

To support the exponential voice and mobile data growth, Idea capex spend for FY15 is Rs 40.5 billion (excluding spectrum); adding 7,589 GSM sites and 8,910 3G cell sites and over 11,000 Km of high capacity optical fibre.1. Idea Cellular Q4 Profit Reaches Rs 942 Cr, Jumps 62.6%

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