Euronews: Write-Downs Hit Telefónica's Full Year
Telefónica SA, Deutsche Telekom AG and Telekom Austria AG loom large in today's trip through the EMEA headlines.
Telefónica's full-year profits fell 27.3 percent to €3.92 billion euros ($5.15 billion), partly because of write-downs on its stakes in Telecom Italia SpA and O2 Ireland, as well as the devaluation of the Venezuelan Bolivar. Revenues were also down, though, by 0.8 percent to €62.35 billion ($81.74 billion). Latin America proved the most profitable region of operations for the operator, with LatAm revenues exceeding those from Europe for the first time. (See Euronews: Telefónica Fans Firefox Flames and Euronews: Telefónica to Support 1,000 Startups.)
Deutsche Telekom made a net loss of €5.3 billion ($6.9 billion) in 2012, though as the carrier is keen to point out, this is largely due to the "accounting effect" relating to its planned merger of T-Mobile USA and MetroPCS Inc. Discounting this impairment charge, profits totaled €2.5 billion ($3.2 billion), an 11.3 percent fall on the previous year. "This loss of billions is not what it appears to be: We are not lacking in funds to drive forward the development of the Group," said CEO René Obermann, defensively, in the earnings statement. (See T-Mobile, MetroPCS to Merge.)
Three former Telekom Austria execs are heading to jail for their part in some share-price manipulation shenanigans back in 2004, reports Reuters. Former CFO Stefano Colombo is one of the guilty men.
Scandals aside, Telekom Austria reports that full-year profits reached just shy of €104 million ($136 million), despite a 2.8 percent decline in revenues.
— Paul Rainford, Assistant Editor, Europe, Light Reading