Light Reading

Euronews: Vodafone Suffers Sales Slump

Paul Rainford
2/6/2014
50%
50%

Also in today's EMEA regional roundup: UK trio launch mobile money platform; AlcaLu shifts its fortunes; Google settles search row with EC.

  • The weakness of the European market has once again proved a drag on Vodafone Group plc (NYSE: VOD)'s financials, with a year-on-year 9.65% slump in European revenues contributing to an overall revenue decline of 3.6% -- to £11 billion (US$17.9 billion) -- in its fiscal third quarter. In its AMAP (Africa, Middle East, and Asia-Pacific) business region, organic revenues grew by 5.5%, with India, which recorded 13.2% revenue growth, proving a particularly happy hunting-ground. CEO Vittorio Colao is banking on the rollout of 4G services to give its European numbers a lift and, in Vodafone's results statement, he pledged to accelerate plans to improve network infrastructure through its so-called "Project Spring." (See Vodafone Reports Fiscal Q3 and Vodafone Ups 'Project Spring' Capex to $11B+.)

  • Away from the numbers, as shouty mod-revivalists The Jam once sang, Vodafone has been teaming up with rival UK operators EE and Telefónica UK Ltd. (O2) to unveil a new mobile payments platform, Weve, reports The Guardian. Weve has the backing of Mastercard, and the partners in the project are planning to market the platform to banks, so that their customers can link to it via their respective banking apps. Last month O2 abandoned its own efforts to launch a smartphone-based "mobile wallet" in combination with Visa. (See Euronews: O2 UK Shuts Its Mobile Wallet.)

  • Alcatel-Lucent (NYSE: ALU) has settled investors' nerves and offered them evidence that Michel Combes' cost-cutting Shift Plan is working. In its fourth-quarter results, AlcaLu recorded net income of €134 million ($181 million), after accumulated losses of around €3.5 billion ($4.7 billion) in the previous six quarters. Its share price rose 9.6% on the Paris exchange in early Thursday trading on the back of the results -- its highest rise in three months. (See Alcatel-Lucent Reports Q4, Full-Year Results, Short Shift: Analyst Doubts AlcaLu's Cost-Cutting Ability, Alcatel-Lucent to Raise $2.7B, and Alcatel-Lucent to Cut 10,000 Jobs.)

  • Google (Nasdaq: GOOG) has successfully placated the European Commission competition authorities and avoided a hefty fine by agreeing to modify the way it presents its search results, reports the Daily Telegraph. Google has agreed that when it uses search results to promote its own services, it must show results from three rivals in a "comparable" way. Its rivals, though, are not happy that Google has managed to persuade European Commission decision-makers that all is in order.

  • Despite seeing a strong growth in the take-up of its pay-TV service, Swisscom AG (NYSE: SCM) recorded a 6.6% fall in net income to 1.69 billion Swiss francs ($1.86 billion) in its full-year results. It has not been the happiest of years for Swisscom -- last July its then CEO, Carsten Schloter, committed suicide, leaving a company in shock and in need of fresh leadership. (See Swisscom Reports Full-Year Results and Swisscom CEO Found Dead.)

  • The German government is looking into selling some of its shares in Deutsche Telekom AG (NYSE: DT), according to a Reuters report. The state currently holds a 31.9% stake in the operator.

  • Interoute Communications Ltd. , the pan-European cloud services provider, has opened a new distributed datacenter in Madrid. The new facility is integrated with Interoute's datacenters in other major European cities, including Paris, Amsterdam, London, and Berlin.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

    (2)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    Gabriel Brown
    50%
    50%
    Gabriel Brown,
    User Rank: Light Sabre
    2/6/2014 | 9:42:51 AM
    ALU
    I haven't looked at ALU results yet, but in LTE and mobile core (segments I cover), it had a good 2013 on the back of North American spending.

    It'll be interesting to see how sustainable the US mobile capex is in 2014, and what the impact of Chinese LTE capex will be.
    Gabriel Brown
    50%
    50%
    Gabriel Brown,
    User Rank: Light Sabre
    2/6/2014 | 9:38:42 AM
    Vodafone
    Vodafone is a good proxy for the European mobile sector. A 10 percent decline in european services revenues, on top of declines last quarter, is not pretty. And it's not just the impact of MTRs any more (although that is still a factor).
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
    LRTV Huawei Video Resource Center
    The Power of Five Convergences in OceanStor OS

    3|4|15   |   6:24   |   (0) comments


    OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
    LRTV Huawei Video Resource Center
    4K Brings Extreme Video Experience

    3|4|15   |   8:10   |   (0) comments


    4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
    LRTV Interviews
    DT's Virtualization Vision for Europe

    3|4|15   |   10:23   |   (0) comments


    Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
    LRTV Custom TV
    ZTE's Wireline at MWC 2015

    3|4|15   |   6:35   |   (0) comments


    Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
    LRTV Custom TV
    ZTE at MWC 2015

    3|4|15   |   4:24   |   (0) comments


    Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
    LRTV Interviews
    Ericsson CEO Talks Telco Data Center Tech

    3|4|15   |   05:45   |   (0) comments


    At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
    Between the CEOs
    EXCLUSIVE: Cisco's Chambers on Reinvention

    3|3|15   |   8:24   |   (1) comment


    Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
    LRTV Documentaries
    The Three Cs of MWC15

    3|2|15   |   2:33   |   (1) comment


    My visit to this year's Mobile World Congress is going to dominated by three Cs – cloud, cells and coffee.
    LRTV Huawei Video Resource Center
    Huawei Shares Its Vision of the Future of Mobile Networks Innovations

    2|26|15   |   2:30   |   (0) comments


    Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
    LRTV Huawei Video Resource Center
    Accelerate Digitizing, Boost Digital Business

    2|26|15   |   6:14   |   (0) comments


    A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
    LRTV Huawei Video Resource Center
    The Secret Recipe to Enabling Hyper-Growth Industries

    2|26|15   |   3:38   |   (0) comments


    With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
    LRTV Documentaries
    BTE 2015 Is Bigger & Even Better

    2|25|15   |   03:13   |   (4) comments


    This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
    Upcoming Live Events
    March 17, 2015, The Cable Center, Denver, CO
    April 14, 2015, The Westin Times Square, New York City, NY
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    All Upcoming Live Events
    Infographics
    Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
    Hot Topics
    Internet Pioneers Decry Title II Rules
    Carol Wilson, Editor-at-large, 3/2/2015
    Wheeler: We'll Enforce Title II 'Case-By-Case'
    Sarah Thomas, Editorial Operations Director, 3/3/2015
    Verizon Takes Radio Dot to Detroit, VoLTE Overseas
    Sarah Thomas, Editorial Operations Director, 2/27/2015
    FCC Adopts Title II Rules
    Alan Breznick, Cable/Video Practice Leader, 2/26/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.