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Eurobites: Swisscom Stagnates in Q1

Also in today's EMEA regional roundup: Nokia upgrades Qatar network; Kudeski buys US security firm; Zain Kuwait buys Sudanese operator.

  • The "increasingly saturated" mobile market is taking some of the blame for a slight year-on-year fall in first-quarter revenues at Swisscom AG (NYSE: SCM), down 0.3% to 2.88 billion Swiss francs (US$2.95 billion). One bright spot, however, was the growth of Swisscom TV, which increased customer numbers by 13.8% year-on-year, to 1.36 million. Its Italian broadband subsidiary, Fastweb SpA (Milan: FWB), also held its end up, increasing revenues by 2.6% in the quarter to €440 million ($509.5 million). Swisscom's outlook for the full year remains unchanged, with expected net revenues of more than CHF11.6 billion ($12.2 billion) and EBITDA of around CHF4.2 billion ($4.4 billion).

    Table 1: Swisscom Q1 Comparison

    Q1 2015 Q1 2016 Change
    Net revenue (in CHF million) 2,893 2,885 -0.30%
    Operating income before depreciation and amortisation (EBITDA) (in CHF million) 1,051 1,081 2.90%
    Operating income (EBIT) (in CHF million) 544 535 -1.70%
    Net income (in CHF million) 351 364 3.70%
    Swisscom TV access lines in Switzerland (in thousands as at 31 March) 1,201 1,367 13.80%
    Mobile access lines in Switzerland (in thousands as at 31 March) 6,568 6,615 0.70%
    Source: Swisscom

  • Nokia Corp. (NYSE: NOK) has landed a three-year network upgrade contract with Qatar's Ooredoo , which will allow the operator to roll out its Supernet 375Mbit/s mobile broadband service -- currently available in parts of the capital, Doha -- right across the country.

  • Switzerland's Kudelski Group , of which set-top box security specialist NAGRA forms a part, has acquired Milestone Systems, a US-based provider of network security software. According to a Kudelski statement, the acquisition adds "specific domain expertise, technology partnerships, and strong services capability" to the vendor's armory.

  • Reuters reports that Kuwait-based Zain Group has agreed to buy a 92.3% stake in Canar, the Sudanese fixed-line operator, for 349.6 million dirhams ($95.2 million). Canar is currently owned by Etisalat.

  • Ericsson AB (Nasdaq: ERIC) is providing its technology to underpin Easypaisa, Pakistan's mobile money service, which was jointly launched by Telenor Pakistan and Tameer Micro Finance Bank. Pakistan has a population of around 199 million, only 15% of which are reckoned to have a bank account.

  • Soundcloud, the Berlin-based music streaming platform of choice for hipsters worldwide, is launching a paid-for version of its service in the UK to challenge Spotify and others. SoundCloud Go, which failed to set the world alight when it launched in the US in March, will cost £9.99 ($14.65) a month.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

  • PaulERainford 5/4/2016 | 4:17:25 AM
    Re: Swisscom TV Growth Well, Alan, it seems like its 'TV 2.0' offering, with its time-shifting and cloud DVR features, has hit a sweet spot with Swiss consumers. Seven-day replay on more than 250 channels - never mind the quality, feel the width!

    alanbreznick 5/3/2016 | 11:34:23 AM
    Swisscom TV Growth Interesting to see Swisscom TV growing so well. Any ideas why, Paul?
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