Euronews: Telekom Austria's Revenues Slide

Telekom Austria AG (NYSE: TKA; Vienna: TKA), Telefónica UK Ltd. (O2) and VimpelCom Ltd. (NYSE: VIP) start the week in today's grab bag of EMEA telecom headlines.

  • A strong performance in its "Additional Markets" division could not prevent Telekom Austria from reporting an overall 4.1 percent decline in revenue year-on-year to €3.33 billion (US$4.55 billion) in its nine-months results. Currency fluctuations, fierce competition domestically and challenging conditions in Central and Eastern Europe were cited as contributory factors. EBITDA (earnings before interest, tax, depreciation and amortization) was also down 7.9 percent to €1.19 billion ($1.63 billion). On the bright side, mobile broadband subscriptions were up by half on the year-ago period, to 1.49 million. (See Telekom Austria 9-Month Revenue Drops 4.1%, Telekom Austria Probes Huawei Deals.)

  • O2 launched the first trial of Long Term Evolution (LTE) in London, where around 1,000 people will be able to test the new mobile broadband technology during the next nine months. The test network has 25 cell sites covering a 40-square-kilometer area of the capital city. (See O2 Lights Up London LTE Trial and O2 Trials LTE in London.)

  • Foreign exchange shenanigans associated with its Wind Telecomunicazioni SpA acquisition meant that VimpelCom's third-quarter net income declined 79 percent to $104 million, despite net operating revenues more than doubling in the same period. How to address this situation will be one of the problems facing Jan Edvard Thygesen, who has resigned from his position at Nordic operator Telenor Group (Nasdaq: TELN) to become deputy CEO at the Russian group. (See VimpelCom Appoints Deputy CEO and VimpelCom Gets Wind.)

  • Britain's biggest mobile operator EE , the joint venture spawned by T-Mobile (UK) and Orange UK , plans to make a bid for independence by paying back £875 million ($1.3 million) in loans to its parent companies, reports the Financial Times. (See Everything Everywhere Shrinks in Q2 and CEO Quits Everything Everywhere.)

  • The economic aftermath of the "Arab spring" took its toll on the third-quarter figures of Telecom Egypt , reports Reuters. Net profit fell 21 percent year-on-year, to 622.7 million Egyptian pounds ($104.2 million).

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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