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Eurobites: Italian Mobile Rivals Plan JV

Also in today's EMEA regional roundup: Telecom Italia's H1 hit by one-off charges; tough times for TDC in Denmark; Tele Columbus preps for M&A action.

  • Russia-based VimpelCom Ltd. (NYSE: VIP) and Hong Kong group Hutchison Whampoa Ltd. (Hong Kong: 0013; Pink Sheets: HUWHY) have agreed to merge their respective Italian mobile units in a 50-50 joint venture, reports Reuters. It's a move that, if approved by Italy's regulatory authorities, will cut the number of mobile operators in the country from four to three. A Reuters source said the new company would be valued at around €21.8 billion (US$23.8 billion).

  • One-off charges relating to restructuring, legal settlements and other issues dented Telecom Italia (TIM) 's half-year results, with €399 million ($436 million) being accounted for in this way. Partly as a result of this, net profits slumped to €29 million ($31.7 million), from €543 million ($593.7 million) a year earlier. Revenues were down 3.3% in organic terms, to €10.1 billion ($11 billion). Capex increased by 25.7% in the second quarter, with more than €2 billion ($2.2 billion) being invested in new fixed and mobile "ultra-broadband" networks.

  • Tough conditions in its home market sent TDC A/S (Copenhagen: TDC)'s second-quarter organic revenue southwards by 2.3%, while its organic EBITDA (earnings before interest, tax, depreciation and amortization) slipped by 7.7%. Price pressure is being keenly felt in Denmark, with mobile ARPU (average revenue per user) down 18% and broadband ARPU down 8%.

  • German cable operator Tele Columbus AG is planning to ready itself for further acquisitions with a capital increase, reports Broadband TV News. Earlier this year, Tele Columbus agreed to acquire rival Primacom for €711 million ($777.3 million).

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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    Gabriel Brown 8/7/2015 | 12:47:48 PM
    Re: off the cliff Stoke, supposedly, will be all stylish this year. Hard to imagine, but hey...
    mendyk 8/7/2015 | 12:40:02 PM
    Re: off the cliff Meanwhile, in more pressing matters ... I can't believe it's EPL time already. Potters on Sunday -- glad I bought an extra bag of coffee to get me through the match.
    Gabriel Brown 8/7/2015 | 12:34:06 PM
    Re: off the cliff Telcos on Google/Apple:

    "How bitter a thing it is to look into happiness through another man's eyes!"
    mendyk 8/7/2015 | 12:17:10 PM
    Re: off the cliff Alas, poor BlackBerry ...
    Gabriel Brown 8/7/2015 | 12:11:21 PM
    Re: off the cliff Voice ARPU -- "We have seen better days"
    PaulERainford 8/7/2015 | 11:58:04 AM
    Re: off the cliff 2G or not 2G? Yep, this has legs.
    mendyk 8/7/2015 | 11:56:54 AM
    Re: off the cliff My kingdom for a reliable 4G data connection. Maybe it's time to ditch the cats in favor of a Shakespeare 2.0 corner.
    PaulERainford 8/7/2015 | 11:43:43 AM
    Re: off the cliff or is it much ado about nothing? (I knew that literature degree would come in handy one day.)
    mendyk 8/7/2015 | 11:38:00 AM
    Re: off the cliff So something's rotten in the state of Denmark's B2B mobile voice market.
    PaulERainford 8/7/2015 | 11:30:36 AM
    Re: off the cliff Actually, Dennis, I should have been more specific on this - it's referring to ARPU erosion in mobile voice in the Danish B2B market. The reason given is simply 'price pressure across segments'.
    Page 1 / 2   >   >>
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