Telefónica SA (NYSE: TEF) and BT Group plc (NYSE: BT; London: BTA) have financial results to share, while ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) has a Portuguese win to trumpet in today's roundup of Euro telecom news.
Spanish and Latin American giant Telefónica reported its results for the first nine months of 2010 today, and behind the headline fireworks of net profit growth of 65.6 percent year-on-year -- thanks largely to its Vivo Participacoes SA acquisition in Brazil -- lies the damp squib that is the decline in organic operating income before depreciation and amortization (OIBDA) of 2.3 percent. The carrier's domestic market is the cause of much of that operating margin weakness. (See Telefónica Reports 9M and Viva La Vivo Deal.)
BT's second-quarter results reveal that though revenues may be down slightly compared with 2009, it has also cut its operating costs, reduced its debt, improved its profit margins, increased its full-year earnings target, and is paying out a slightly higher half-year dividend. And investors are happy with the overall picture, as BT's share price added nearly 4 percent in value this morning. (See BT Reports Q2.)
BT has something else to celebrate: It, along with broadband provider TalkTalk , has persuaded the UK courts to order a judicial review of the Digital Economy Act, reports The Daily Telegraph. This is a piece of legislation that, if it comes into force as planned in 2011, will force ISPs to block illegal file sharers from accessing the Internet. At the same time, financial market gossip suggests that TalkTalk may be a takeover target for Vodafone Group plc (NYSE: VOD). (See Brits Press On With Broadband Plans .)
Chinese equipment vendor ZTE has landed an interesting deal in Portugal, where it's providing radio access network (RAN) gear that supports both CDMA EV-DO Rev. B and mobile WiMax on the same platform to a group of competitive service providers that trade under the ZAPP brand. As part of the €30 million (US$41.2 million) contract, ZTE is also supplying VoIP systems that will enable packet-voice services across both the next-generation CDMA and WiMax networks. (See ZTE Wins CDMA/WiMax Deal in Portugal.)