Also in today's EMEA regional roundup: BT counts the cost of sport; Nokia scores patents victory over HTC; Telenor heads in right direction.
Alcatel-Lucent (NYSE: ALU)'s much-vaunted "Shift Plan" appears to be working, as its third-quarter results show losses have shrunk to €200 million (US$272.7 million), down from €316 million ($431 million) in the year-ago period. Third-quarter revenues were up 1.9 percent year-on-year at €3.66 billion ($4.95 billion). This, as Bloomberg reports, was better than expected, and shares in the vendor rose 14 percent to €2.68 on the Paris exchange. This will all be good news for CEO Michel Combes, but he still faces a tough time ahead implementing his grand projet in the face of fierce opposition from the French labor unions. (See Euronews: AlcaLu CEO Delivers Stark Warning and Alcatel-Lucent to Cut 10,000 Jobs.)
BT Group plc (NYSE: BT; London: BTA)'s fiscal second-quarter results reveal the effects that the operator's massive investment in its paid-for sports channel, BT Sport, has had on its financials. As BT had predicted, its EBITDA (earnings before interest, tax, depreciation and amortization) was down 4 percent year-on-year to £1.43 billion ($2.29 billion), while operating costs increased 13 percent. The BT Sport service has attracted more than 2 million subscribers, though some of its offerings have attracted audiences counted in the hundreds rather than the thousands, as this report in The Guardian points out. Overall, BT's second-quarter revenues were flat at £4.49 billion ($7.2 billion). (See BT's Got Balls.)
Data traffic growth at its Asian units helped keep Telenor Group (Nasdaq: TELN)'s third-quarter financials heading in the right direction, with organic revenue growth of 1 percent year-on-year to 25.95 billion Norwegian kroner ($4.36 billion). Net profits stood at NOK3.91 billion ($657 million), up from NOK3.65 billion ($614 million) in the same period a year ago.
Zain Bahrain has upgraded its network, employing Ericsson AB (Nasdaq: ERIC) to replace its existing 2G and 3G radio network equipment and adding a dash of 4G with Ericsson's RBS 6000 range of basestations. See this press release for more details.
Mobile network sharing seems to be all the rage: Now, as Reuters reports, Telefonica Czech Republic and T-Mobile Czech Republic a.s. have tied the knot on 2G and 3G. Testing starts next week, with a nationwide rollout due next year if all goes to plan.
MarkC73, User Rank: Light Sabre 10/31/2013 | 4:23:08 PM
Re: ALU There's nothing that can happen that will prove its point to the labor. For Combes, it's a good thing, because it shows the board and shareholders he's making progress for the company. But whether the company was doing good or bad, labor will start off with, see, I told you so... Not saying whether I agree or disagree, just answering the question.
macster, User Rank: Light Bulb 10/31/2013 | 4:02:40 PM
Re: ALU A 10k headcount cull should both reduce cost and improve earnings. 3rd quarter revenue up, but I don't know if you can relate this to the labour issue. How does ALU's revenue figure compare with competitors?
DOShea, User Rank: Blogger 10/31/2013 | 3:55:06 PM
Network sharing I think Sprint had talked sometime in the last several months about being open to the concept of network sharing, though I don;t think we've heard anything lately from them. Wonder how much potential it has in the U.S. market.