Light Reading
Also in today's EMEA regional roundup: Transmode Q2 profits halved; Hutchison, VimpelCom discuss Italian merger; BT targets SMBs with One Phone.

Eurobites: TeliaSonera Suffers in Spain

Paul Rainford
7/17/2014
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Also in today's EMEA regional roundup: Transmode Q2 profits halved; Hutchison, VimpelCom discuss Italian merger; BT targets SMBs with One Phone.

  • Swedish operator TeliaSonera AB (Nasdaq: TLSN) is looking again at selling its Spanish subsidiary, Yoigo , following results that reflected tough trading conditions there, reports Bloomberg. Second-quarter operating income decreased 10.4% to 6.43 billion Swedish kroner (US$941 million), and TeliaSonera revised its full-year outlook from flat to slightly below 2013 levels.

  • Second-quarter profits at Transmode Systems AB , the Swedish optical and Carrier Ethernet vendor, more than halved year-on-year to SEK19.1 million ($2.8 million) on sales that were down 14.8% to SEK250 million ($36.6 million). In a statement accompanying the results, CEO Karl Thedéen blamed the lower sales on reduced buildout activity at Transmode's EMEA clients.

  • Hutchison Whampoa Ltd. (Hong Kong: 0013; Pink Sheets: HUWHY) and VimpelCom Ltd. (NYSE: VIP) are back in talks about merging their mobile assets in Italy, according to this Bloomberg report. However, the talks may come to nothing: Apparently, Hutchison wants its 3 Italia unit to control any joint entity, but VimpelCom is looking for a 50:50 split.

  • Still in Italy, Telefónica SA (NYSE: TEF) will cut its stake in incumbent Telecom Italia SpA (NYSE: TI) by more than third by selling $1 billion worth of convertible bonds, reports Bloomberg. Telefónica has to divest these assets to comply with an order from the Brazilian antitrust regulator over its dealings there.

  • BT Group plc (NYSE: BT; London: BTA) today launched a new fixed-mobile service for UK small and midsized businesses called BT OnePhone, which is built on its existing fixed and Wifi assets, small cells, some of its own spectrum, and its MVNO agreement with EE . (See BT Launches One Phone for SMBs.)

  • Ziggo B.V. , the Dutch cable operator that is in the process of being taken over by Liberty Global Inc. (Nasdaq: LBTY), saw its second-quarter core profits rise 2.2% year-on-year, reports Reuters. Separately, meanwhile, Liberty Global has splashed £481 million ($822.4 million) on acquiring a 6% share of ITV, the UK's main commercial broadcaster and the outfit responsible for such ratings bankers as Coronation Street and Emmerdale. (See Euronews: Rivals Set for Cable Asset Battle.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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