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Euronews: Summer Scandal Special

In today's EMEA roundup: Skulduggery in Spain and Kazakhstan; half-year results a-go-go; Russian satellites fail to fly

Paul Rainford

August 8, 2012

3 Min Read
Euronews: Summer Scandal Special

Tele2 AB (Nasdaq: TLTO), Oki Electric Industry Co. Ltd. and TDC A/S (Copenhagen: TDC) mix it up in today's zip through the EMEA telecom headlines.

  • Regional operator Tele2 has launched an internal investigation into accusations that an employee at majority-owned Kazakh operator Mobile Telecom Service engaged in industrial espionage to gain access to market strategy details of rival Kcell. The employee, who has been sacked by Tele2, has been charged with a criminal offence.

  • Japanese telecom systems and printer vendor Oki Electric Industry has "discovered improper accounting" at a Spanish subsidiary, Oki Systems Ibérica, that could result in a ¥8 billion (US$102 million) loss and the restatement of some financial reports.

  • Half-yearly EBITDA (earnings before interest, tax, depreciation and amortization) at Danish incumbent TDC fell 4 percent year-on-year to 5.13 billion crowns (US$856 million), on revenues that inched up by 0.5 percent to 13.22 billion ($2.1 billion). Intense competition necessitated heavy bundle-based discounting, which saw ARPU (average revenue per user) fall during the period.

  • euNetworks Group Ltd. , the U.K.-based bandwidth infrastructure provider, has posted a half-year net loss of €18.5 million ($22.8 million), compared with a net loss of €10.1 million ($12.4 million) in the first half of 2011. Half-yearly revenue, however, was up 84 percent year-on-year to €46.2 million ($57.1). Last month euNetworks switched on an 8.8-Terabyte link between Dublin and London. (See euNetworks Posts €18.5M Loss in H1 and euNetworks Deploys Dublin-London Link.)

  • Prysmian SpA , the Italian cable firm, reports that growth in the Americas has helped offset a decline in European business. Adjusted net profits for the first half of 2012 rose 15 percent year-on-year to €130 million ($160.5 million), on flat revenues of €3.9 billion ($4.8 billion).

  • Space junk ahoy -- close the sunroof! Reuters reports that two telecom satellites failed to launch properly from the Russian-leased Baikonur launch pad in Kazakhstan on Monday. Russia's Express MD2 and Indonesia's Telkom 3 were the two birds that didn't fly, costing somebody up to $150 million.

  • Swisscom AG (NYSE: SCM) is feeling the heat, it says, as traditional services such as switched voice calls and SMS give way to IP-based applications and social media for communication. Its revenues for the first half of 2012 were down 1.8 percent year-on-year to 5.6 billion Swiss francs ($5.7 billion), while profits fell 3.5 percent to CHF928 million ($955 million). (See Swisscom Reports H1 Profit of CHF928M and Euronews: Ericsson Readies Swisscom for LTE.)

  • Post-uprising demands for higher wages at Telecom Egypt are cited as a factor in the operator's25 percent drop in net profit, from 813 million Egyptian pounds ($133 million) in the second quarter of 2011 to EGP613 million ($100 million), reports Reuters.

  • There could be more angry folk waving placards outside Google (Nasdaq: GOOG)'s U.K. headquarters, predicts the Daily Telegraph, following the revelation that the search behemoth paid just £6 million ($9.4 million) tax on U.K. revenues of £3.95 billion ($6.18 billion) in 2011.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

About the Author(s)

Paul Rainford

Assistant Editor, Europe, Light Reading

Paul is based on the Isle of Wight, a rocky outcrop off the English coast that is home only to a colony of technology journalists and several thousand puffins.

He has worked as a writer and copy editor since the age of William Caxton, covering the design industry, D-list celebs, tourism and much, much more.

During the noughties Paul took time out from his page proofs and marker pens to run a small hotel with his other half in the wilds of Exmoor. There he developed a range of skills including carrying cooked breakfasts, lying to unwanted guests and stopping leaks with old towels.

Now back, slightly befuddled, in the world of online journalism, Paul is thoroughly engaged with the modern world, regularly firing up his VHS video recorder and accidentally sending text messages to strangers using a chipped Nokia feature phone.

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