Displaying items by tag: financial results
Microsoft reported higher results for its fiscal third quarter to end March, powered by sharp demand for its Teams chat and online meeting app and cloud computing services as the world shifted to working and playing from home because of the novel coronavirus pandemic.
Microsoft Teams now has 75 million daily active users. This comes as the coronavirus pandemic has forced businesses to operate remotely, and has boosted the demand for Microsoft's products that enable communication and collaboration.
The company said net impact was minimal and that cloud usage increased. There was a slowdown in transactional licensing, particularly among SMEs, and a reduction in advertising spends on LinkedIn.
In the More Personal Computing segment, Windows OEM and Surface benefited from increased demand for remote work and learning, but supply chain constraints in China offset that rise, though these improved late in the quarter.
Gaming benefited from people in lockdown, but Search was negatively impacted by less ad spend. Microsoft noted that the full effects of the pandemic may not be fully felt until later in the future.
Revenue for the quarter climbed 15 percent from the year before to USD 35.0 billion, the operating profit increased 25 percent to USD 13.0 billion and the net profit rose 22 percent to USD 10.8 billion or USD 1.40 per share. Commercial Cloud helped lift results, generating USD 13.3 billion worth of revenues, up 39 percent.
Total Intelligent Cloud revenues went up 27 percent to USD 12.3 billion, with server products and cloud services going 30 percent higher and Azure leaping 59 percent. Enterprise Services revenue increased 6 percent.
Productivity and Business Processes was the next largest division, with revenues rising 15 percent to USD 11.7 billion. These included Office Commercial products and cloud services revenue up 13 percent, driven by Office 365 commercial revenue growth of 25 percent. Office Consumer products and cloud services revenue strengthened 15 percent, also helped Office 365, with consumer subscriber numbers growing to 39.6 million. LinkedIn revenue went up 21 percent while Dynamic products and cloud services had revenues rising 17 percent, driven by Dynamics 365 revenue growth of 47 percent.
Microsoft said it returned USD 9.9 billion to shareholders in the quarter, in the form of share buybacks and dividends, an increase of 33 percent from the year earlier.
Samsung has reported its financial results for the first quarter of 2020 which showed decreased profits due to the pandemic.
Google parent Alphabet has reported a slowdown in first-quarter revenue growth, as the Covid-19 pandemic led to a drop in advertising on the search engine from March. Revenues rose 13 percent year-on-year to USD 41.2 billion, down from 17 percent annual growth a year earlier and in Q4.
The US giant exceeded dim earnings expectations, showing higher revenue and profits despite a coronavirus-induced slowdown in its core advertising operations. Alphabet shares leapt more than eight percent in after-hours trades following release of earnings figures that eased fears the pandemic would stall the internet firm's income engine.
Alphabet reported a profit of $6.8 billion in the first three months of the year, up nearly three percent from last year, on revenue that grew 13 percent to $41 billion. The Silicon Valley giant, the first of the big technology firms to report quarterly results, offered a mixed picture: a strong start to the year followed by an abrupt slowdown in advertising in March and some tentative signs the worst may be over.
Chief financial officer Ruth Porat pointed to "very early signs of recovery in commercial search behavior by users" but added that "it is not clear how durable or monetizable this behavior will be."
Still, the report showed one of the major tech firms weathering the crisis and seeing some hopeful signs in advertising, which represents the lion's share of Alphabet revenue and is closely tied to economic conditions.
"In a quarter of bad news, this was really good news," said analyst Rob Enderle of Enderle Group, who predicted improvement in the digital ad market in May and June.
Baird analyst Colin Sebastian expected the current quarter to be "the bottom" of an online advertising trough at Alphabet, while noting growth in its YouTube and cloud computing revenues.
"This is probably exactly what technology needed at a time when many suspected FANG/Tech could be rolling over," Mark Newton of Newton Advisors said in a tweet, referring to the acronym for the big tech firms Facebook, Amazon, Netflix and Google.
Alphabet executives remained cautious in their outlook, noting that the company is cutting back on hiring, marketing, office expansion and other expenses while continuing to invest in promising long-term trends like companies moving more aggressively to services hosted in the internet cloud.
"It is now clear that once the emergency has passed, the world will not look the same," Alphabet-Google chief Sundar Pichai said during an earnings call.
"Some social norms will change, and many businesses are speaking to us looking to reinvent their operations."
Google services, data centers, and software capabilities are positioned to help with trends in online education, healthcare, entertainment, and shopping likely to continue after the pandemic has ended, according to Pichai.
Overall ad revenues for Google rose 10 percent for the quarter despite the pandemic's worsening in March.
YouTube's ad revenue was up about a third to $4 billion as people turned to online entertainment while they hunkered down at home to avoid the coronavirus.
The pandemic has disrupted operations at tech powerhouses known themselves for disrupting traditional business models.
Fewer people are buying new smartphones; more people are online and using social platforms but online advertising is slumping; cloud computing needs are growing; and more consumers are relying on delivery of essential goods from Amazon.
Along with other tech firms, Google has been highlighting its role in helping consumers and authorities in the battle against COVID-19.
Pichai said that "we've marshaled our resources" to assist people during the crisis.
"Given the depth of the challenges so many are facing, it's a huge privilege to be able to help at this time," he said.
Google has teamed up with longtime rival Apple to develop technology for coronavirus smartphone "contact tracing" by allowing devices from the two platforms to communicate and indicate when people have crossed paths with an infected person.
YouTube said it began adding fact-check panels to search results in the US for videos on hot-topic claims shown to be bogus.
The report showed revenue rose 26 percent to $170 million for Alphabet's "other bets" which include the Waymo self-driving car project, Wing drone delivery and Verily life sciences. But these "moonshot" projects produced a collective operating loss of $1.1 billion.
Iridium Communications reported financial results for the first quarter of 2020 and updated its full-year 2020 outlook. Net loss was $31.7 million, or $0.24 per diluted share, for the first quarter of 2020, as compared to net loss of $18.0 million, or $0.18 per diluted share, for the first quarter of 2019.
This increase in net loss was primarily the result of debt extinguishment costs associated with Iridium’s refinancing of its senior unsecured notes. Operational EBITDA for the first quarter was $92.1 million, as compared to $78.0 million for the prior-year period, representing a year-over-year increase of 18% and an operational EBITDA margin of 63%.
Iridium reported first-quarter total revenue of $145.3 million, which consisted of $116.0 million of service revenue and $29.3 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 9% from the comparable period of 2019, while service revenue grew 8% from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium’s growing subscriber base, was 80% of total revenue for the first quarter of 2020.
The Company ended the quarter with 1,332,000 total billable subscribers, which compares to 1,151,000 for the year-ago period and is up from 1,300,000 for the quarter ended December 31, 2019. Total billable subscribers grew 16% year-over-year, driven by growth in commercial and government IoT customers.
“In the first quarter, Iridium delivered solid growth in total revenue and billable subscribers, driven by strong gains in service revenue, engineering and support services, and equipment sales. New revenue from Iridium Certus® broadband, along with increases in contractual revenue from the U.S. government and Aireon also aided our results,” said Matt Desch, CEO, Iridium. Desch added, “Iridium is pleased to have completed all planned refinancing activities in recent months, and we remain confident in our ability to generate significant free cash flow in 2020 and beyond. Accordingly, we continue to be committed to undertaking shareholder-friendly activities in due course.”
Commenting on the impact of COVID-19 to the business, Desch said, “In March we began to see a reduction in the pace of subscriber additions, and heard from some of our many partners about varying levels of business impact depending on their industry. Into April, these trends accelerated. While we continue to forecast overall growth in service revenue and Operational EBITDA for 2020, we are updating our full-year outlook to account for these unfavorable impacts.”
Desch continued, “Iridium’s satellite services are used for mission-critical applications across the globe, and our revenue base has, historically, been more resilient than many businesses to exogenous shocks and economic cycles, though the current economic shutdown is unprecedented. The timing of the shutdown coincides with Iridium’s peak season and will impact us accordingly. Still, we remain confident in Iridium’s ongoing financial position and our capacity to generate significant free cash flow.”
Commercial service remained the largest part of Iridium’s business, representing 63% of the Company’s total revenue during the first quarter. The Company’s commercial customer base is diverse and includes markets such as maritime, aviation, oil and gas, mining, recreation, forestry, construction, transportation and emergency services. These customers rely on Iridium’s products and services as critical to their daily operations and integral to their communications and business infrastructure.
Commercial service revenue was $91.0 million, up 7% from last year’s comparable period due to an increase in revenue primarily from hosted payload and other data services, broadband and IoT.
Commercial voice and data subscribers were up 1% from the year-ago period to 351,000 customers. Commercial voice and data average revenue per user (“ARPU”) was $40 during the first quarter, unchanged from last year’s comparable period. Commercial IoT data subscribers grew 22% from the year-ago period to 830,000 customers, driven by continued strength in consumer personal communications and tracking devices. Commercial IoT data ARPU was $9.71 in the first quarter, compared to $11.32 in last year’s comparable period.
Commercial broadband revenue was $8.7 million, up from $6.8 million in the year-ago period. This rise was primarily attributable to the introduction of Iridium Certus broadband service. Commercial broadband average revenue per user (“ARPU”) was $267 during the first quarter, compared to $233 in last year’s comparable period.
Iridium’s commercial business ended the quarter with 1,192,000 billable subscribers, which compares to 1,036,000 for the year-ago period and is up from 1,165,000 for the quarter ended December 31, 2019. IoT data subscribers represented 70% of billable commercial subscribers at the end of the quarter, an increase from 65% at the end of the prior-year period.
Hosted payload and other data service revenue was $16.3 million in the first quarter compared to $13.9 million in the prior-year period, which was primarily due to increased Aireon data service fees related to a contractual step-up.
Iridium’s voice and data solutions improve situational awareness for military personnel and track critical assets in tough environments around the globe, providing a unique value proposition that is not easily duplicated.
Under the Enhanced Mobile Satellite Services contract (the “EMSS Contract”), a seven-year, $738.5 million fixed-price airtime contract with the U.S. Air Force Space Command signed in September 2019, Iridium provides specified satellite airtime services, including unlimited global standard and secure voice, paging, fax, Short Burst Data®, Iridium Burst®, RUDICS and Distributed Tactical Communications System services for an unlimited number of Department of Defense and other federal government subscribers. Iridium also provides maintenance and support work for the U.S. government’s dedicated Iridium gateway under two other contracts with the U.S. Air Force Space Command. Iridium Certus airtime services are not included under these contracts and may be procured separately for an additional fee.
Government service revenue was $25.0 million and reflected increased revenue from the Company’s EMSS Contract.
Iridium’s government business ended the quarter with 140,000 subscribers, which compares to 115,000 for the year-ago period and is up from 135,000 for the quarter ended December 31, 2019. Government voice and data subscribers rose 11% from the year-ago period to 59,000 as of March 31, 2020. IoT data subscribers increased 31% year-over-year and represented 58% of government subscribers, an increase from 54% at the end of the prior-year period.
Equipment revenue was $22.3 million during the first quarter, up 6% from the prior-year period.
Due to the combined effects of the current global shutdown, deterioration in the oil and gas market, and strength of the U.S. dollar, the Company now expects full-year equipment sales will be down from 2019 levels.
Engineering and support revenue was $7.0 million during the first quarter, compared to $5.7 million in the prior year’s quarter, primarily due to an increase in the volume of contracted work.
Capital expenditures were $9.5 million for the first quarter, which includes $1.2 million of capitalized interest. The Company ended the first quarter with gross debt of $1.65 billion and a cash and cash equivalents balance of $67.3 million, for a net debt balance of $1.58 billion.
Two noteworthy transactions have impacted the structure of Iridium’s debt financing over the last two quarters. In November 2019, the Company entered into a seven-year, $1.45 billion secured Term Loan. The proceeds of the Term Loan, along with the cash in the Company’s debt service reserve account and cash on hand, were used to prepay all of the indebtedness outstanding under its BPIAE Facility and premiums for early prepayment, net of amounts refunded, of $48.9 million. On February 7, 2020, the Company closed on an additional $200.0 million under its Term Loan. On February 13, 2020, the Company used the proceeds of this transaction, together with cash on hand, to prepay all of the $360.0 million in indebtedness outstanding under the Company’s senior unsecured notes, premiums for early prepayment of $23.5 million, and accrued interest.
Given the current global shutdown and macroeconomic uncertainties, the Company updated its full-year 2020 outlook and currently anticipates:
- Growth in total service revenue for full-year 2020. Total service revenue for 2019 was $447.2 million.
- Growth in OEBITDA for full-year 2020. OEBITDA for 2019 was $331.7 million.
- Negligible cash taxes in 2020. Cash taxes are expected to be negligible through approximately 2023.
- Net leverage of no more than 4.4 times OEBITDA at the end of 2020. Net leverage was 4.8 times OEBITDA at December 31, 2019.
Twitter has announced it expects operating loss in the first-quarter, and quarterly revenue to be down on a year-over-year basis, as a result of the impact of the coronavirus pandemic.
"Twitter had a strong start to the year before the effects of COVID-19 began spreading more broadly...... it has impacted Twitter's advertising revenue globally more significantly in the last few weeks," said Ned Segal, Twitter's Chief Financial Officer.
Despite this, the crisis has significantly expanded its average daily user base — with a net gain of 12 million so far in the current period. The COVID-19 outbreak have boosted Twitter’s overall daily active users (DAU): According to the company, year to date average total monetizable DAU are approximately 164 million, up 23% from 134 million in Q1 2019 and an increase of 8% from 152 million in Q4 2019.
In the current quarter, “We’re seeing a meaningful increase in people using Twitter, and our teams are demonstrating incredible resilience adapting to this unprecedented environment,” Twitter CEO Jack Dorsey said in a statement. “We’ll continue to navigate this environment focusing on supporting our employees, customers, and partners, while strengthening our service for everyone around the world and adjusting to a new operating and economic environment.”
While announcing the fourth-quarter results, Twitter had expected operating income to be between break even and $30 million, and total revenue of $825 million - $885 million for the first-quarter.
The company said it withdrew its prior operating income and revenue guidance for the first quarter of 2020, due to the profound changes on the global operating and economic environment and the effect on advertiser demand.
Twitter expects to release financial results for the first quarter on April 30, 2020.
Google’s parent company, Alphabet, reported its fourth-quarter and full-year financial results. The company’s revenue grew from $39.3 billion in 2018 to $46.1 billion in 2019. The firm’s net income also expanded from $8.9 billion to $10.7 billion over the same time frame.
However, the figures, when compared to expectation, were mixed. Alphabet missed revenue expectations in the fourth quarter despite stellar growth at YouTube and in the cloud, earnings figures showed.
Detailing its cloud computing and YouTube revenues for the first time, Alphabet reported that profits rose 19 percent from a year ago in the quarter to nearly $10.7 billion as revenues increased 17 percent to $46 billion.
The company said its cloud computing services took in $2.6 billion in revenue during the last three-month period, up more than 50 percent and nearly $9 billion for the year.
Alphabet and Google chief executive Sundar Pichai touted YouTube as a revenue star at the company, with ad revenue reaching $15 billion last year in an increase of about 36 percent from 2018. YouTube music and television premium services now have more than 20 million paid subscribers, according to Pichai.
Despite assurances by executives that Alphabet sees plenty of money-making potential ahead and is investing to capitalize on long-term trends, Alphabet shares slipped more than four percent in after-market trades that followed release of the earnings figures.
The California tech giant, which dominates online search and makes the Android mobile operating system, has been working to reduce its dependence on the digital advertising which delivers most of its cash.
"Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet," said Pichai.
Chief financial officer Ruth Porat said Alphabet will ramp-up hiring this year. Much of that will be engineering talent for its cloud division which competes with cloud market-leaders Amazon and Microsoft.
"We are leaning into investing for long-term growth," Porat said. "That has been a key principle here and continues to be," she added.
Google advertising took in the majority of revenue at $38 billion in the quarter, and more than 80 percent of its annual revenues of $162 billion. Colin Sebastian, an analyst at Baird, said the earnings report showed "a deceleration" in growth for Google, which may have been due to the impact of fewer holiday shopping days.
Analyst Nicole Perrin at eMarketer said the results highlight the significance of YouTube, the popular video service for which Alphabet had not up to now disclosed financial data.
"This is something investors have been looking for, but the information should also give advertisers valuable information about the importance of YouTube as a digital ad vehicle," Perrin said.
"YouTube is growing strongly according to this report, and revenues are above where eMarketer had thought they were."
Ericsson published its financial results for Q3 2019, reporting 3% percent growth in sales. Total sales were SEK 57.1 billion(b)., equivalent to AED 21.5 b. Sales adjusted for comparable units and currency increased by 3% driven by strong growth in North America and North East Asia.
For Q3 19, operating income was impacted by cost provisions of USD -1.2 b. (SEK -11.5 b.) corresponding to a margin of 11.4% excluding restructuring costs, the US investigation costs of USD -1.2 b. (SEK -11.5 b.) and the refund of social security costs of SEK 0.9 b.
Ericsson previously communicated that its third-quarter 2019 results will be impacted by a 12 billion Swedish krona provision. This is due to the investigations by U.S. authorities.
Net income suffered a SEK -6.9 b. loss, also negatively impacted by the investigation.
Free cash flow before M&A was SEK 5.5 b., showing a strong financial position.
Gross margin excluding restructuring charges was 37.8% (36.9%) with improvements in Managed Services, Digital Services and Networks. The gross margin in the previous quarter was 36.7% and 36.9% last year.
Strategic contracts in Networks, with initially low margins, taken to strengthen the market position, are expected to have a somewhat increased negative impact on gross margin short term without jeopardizing the 2020 target.
Ericsson has played a pivotal role in the advancement of 5G technology. Large 5G deployments in China are expected to commence in 2020. Ericsson has invested in R&D and supply chain capacity, aiming to increase market share. Based on historic experience margins are initially challenging but turn positive over the lifespan of a contract.
Commenting on the results, to Börje Ekholm, President and CEO of Ericsson said:
“We continue to see strong momentum in our business, based on the strategy to increase our investments for technology leadership, including 5G… Our focused strategy, introduced in 2017, is aimed at building a stronger Ericsson longer term. With clear focus on our operator customers the strategy stands on a foundation of increased investments in R&D for technology and cost leadership, and growing market footprint. Increased R&D efforts, which will continue, have resulted in a competitive portfolio driving improved gross margin.”
He added, “An important indicator for our execution of the strategy is the improvement in gross margin. The gross margin in the quarter ended at 37.8% compared with 36.9% last year and 36.7% last quarter. Within the 0.8 percentage point sequential decline in Networks gross margin, we have absorbed the margin impact and inventory provisions related to strategic contracts.”
In the report, Börje Ekholm believes their success is driven by the adopters of 5G. He also announced that 5G has taken off earlier than expected.
“5G is taking off faster than earlier anticipated and we see initial 5G buildout as a capacity enhancer in metropolitan areas. However, over time, new exciting innovations for 5G will come with industrial and IoT use cases, leveraging the speed, latency and security characteristics of 5G. This provides opportunities for our customers to capture new revenues as they provide additional benefits to consumers and businesses.”
“Our IoT business is growing almost twice as fast as the estimated market growth of 20-25% per year. We have more than 4,500 enterprises on our IoT platform and the number of connected devices on the platform has more than doubled year to date. To fully leverage our position and capture new recurring revenue streams we are increasing our investments in IoT within Emerging Business. With this investment, we do not expect to reach breakeven for the segment next year, and instead incur losses of SEK -1.5 to -2.0 b”
TELUS Corporation today released its unaudited results for the third quarter of 2018. For the quarter, the operator consolidated operating revenue of $3.8 billion increased by 11 per cent over the same period a year ago.
This growth was driven by higher wireless network and equipment revenues, wireline services revenue growth and higher other operating income resulting from our share of the non-recurring equity income related to real estate joint ventures of $171 million arising from the sale of TELUS Garden. Excluding this equity income consolidated operating revenue increased by 5.8 per cent.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 8.2 per cent to $1.3 billion due to higher revenue growth as referenced above and improved wireless equipment margins.
This growth was partly offset by incremental employee benefits expense due to recent business acquisitions and increased costs to support our growing customer base. Adjusted EBITDA was up 6.4 per cent when excluding the net gain from the sale of TELUS Garden, as well as restructuring and other costs, which included our committed donation of $118 million to the TELUS Friendly Future Foundation.
“TELUS reported strong operational and financial results for the third quarter, including robust customer growth across both the wireless and wireline segments of our business. This was buttressed by a continued excellent performance in wireless and wireline customer loyalty and lifetime revenue,” said Darren Entwistle, President and CEO. “Importantly, the TELUS team continues to achieve industry-leading postpaid wireless churn, and realized record third quarter high-speed Internet and TV retention levels. This performance was driven by our team’s relentless focus on providing exceptional customer experiences, and was anchored by the ongoing generational investments we are making in our leading broadband wireline and wireless networks, both of which are hallmarks of TELUS’ successful, long-term growth strategy.”
Mr. Entwistle added, “The efficacy of our broadband technology investments is reflected in TELUS, once again, being named as having the fastest mobile network in Canada by PCMag. This repeat acknowledgement builds on our outstanding record of achievement with respect to network excellence, having already earned the top spot in all major mobile networks reporting this year, including Ookla, J.D. Power and OpenSignal. These leading network rankings, each received consecutively for two or more years, reinforce the consistent superiority of TELUS’ broadband networks available to citizens across the country.
Mr. Entwistle further commented, “Our dividend increase announced today, on the back of our 41 per cent free cash flow growth, reflects the sixteenth increase since 2011, and is the fourth in our most recent three-year dividend growth program, targeting annual growth between seven and 10 per cent through 2019. This builds on our proven track record of providing investors with the industry’s best multi-year dividend growth program, which continues to generate significant value for our shareholders. Notably, TELUS has now returned $16 billion to shareholders, including $10.8 billion in dividends, representing $27 per share since 2004. We look forward to updating investors on the progression of this program at our 2019 annual general meeting.”
Doug French, Executive Vice-president and CFO said, “For the third quarter of 2018, TELUS delivered positive operational and financial results, reflecting the strength of our multiple product and valued service offerings, our commitment to customer service excellence and our network superiority. Our strategic capital investments are clearly paying off, as evidenced by our strong subscriber and loyalty results, and position us to maintain our network leadership as we progressively move towards the arrival of 5G.”
Mr. French added, “As we head into the seasonally important final quarter of 2018, we remain focused on executing against our strategy, amplifying our efforts on cost efficiency, focusing on margin accretive customer growth and investing to support our growth strategy. Today we are raising our full year 2018 assumption for restructuring and other costs, including an additional $50 million targeted towards further streamlining our business and enhancing our effectiveness in serving our growing customer base. This additional investment in restructuring, to be recorded in the fourth quarter of 2018, is expected to deliver annual cost savings of more than $50 million beginning next year. Meanwhile, our net debt to EBITDA leverage ratio continues to improve, putting us in good position for 2019.”
Qualcomm Incorporated announced results for its fiscal fourth quarter and year ended September 24, 2017. The company reported revenues of $5.9 billion for Q4 2017 compared to $6.2 billion in Q4 2016 (5 percent drop). Qualcomm said the results were negatively impacted by its ongoing dispute with Apple.
The company also highlighted a previously disclosed dispute with another licensee, who underpaid royalties to Qualcomm due in the second quarter of fiscal 2017 and did not report or pay royalties due in the third and fourth quarter. Qualcomm said it expects the licensees will continue to take such actions in the future until the disputes are resolved.
Qualcomm Incorporated CEO, Steve Mollenfopf, remained positive, saying the results reflect “continued product leadership and profitability improvement in our semiconductor business, including strength in adjacent opportunities outside mobile.”
Mollenkopf said the company continues to see “strong growth trends for global 3G/4G device shipments and are focused on protecting the established value of our technologies and inventions. We are leading the industry to 5G and are well positioned with our product and technology leadership to continue our expansion into many exciting new product categories, such as automotive, mobile computing, networking and the Internet of Things.”
In addition to the Apple dispute, Qualcomm’s Q4 results were negatively affected by an $868 million fine imposed by the Korea Fair Trade Commission (KFTC) in the first quarter of 2017; as well as a $974 million reduction to revenues related to the BlackBerry arbitration decision in the second quarter; and a $778 million fine imposed by the Taiwan Fair Trade Commission (TFTC), which was accrued in the fourth quarter.
Also affecting Qualcomm’s results, during the fiscal year, the company deposited $2 billion to collateralize the letters of credit related to its proposed acquisition of NXP, which was recorded as other noncurrent assets at the end of the third and fourth quarters of fiscal 2017.
On October 27, 2016, Qualcomm announced a definitive agreement to acquire NXP Semiconductors N.V. for estimated total cash of $38 billion to be paid to shareholders. NXP is a leader in high-performance, mixed-signal semiconductor electronics in automotive, broad-based microcontrollers, secure identification, network processing and RF power products. The transaction is subject to receipt of regulatory approvals.
Emirates Integrated Telecommunications Company PJSC, the parent company of “du” and “Virgin Mobile UAE”, published its financial results for the quarter ended 30 September 2017, showing a 4 percent growth in net profit after royalty to AED 476 million.
Revenue was “stable” according to EITC chief executive officer, Osman Sultan, at AED 3.13 billion, compared to AED 3.14 billion in Q3 2016, as the company “invests in adjacent business areas to transition to its next phase of growth.”
“We continue to see pressure on mobile rates, with mobile revenue decreasing 3.3 percent to AED 2.30 billion,” said Mr. Sultan. “We remain on track with our strategy of attracting higher quality customers and are pleased to report that the post-paid segment increased 14 percent in Q3 2017 compared to the same period last year.”
Mr. Sultan added, “EBITDA was AED 1.33 billion in Q3 2017, compared to AED 1.38 billion for the same period last year, showing a decline year on year as the company invests in adjacent business areas to transition to its next phase of growth.”
Mr. Sultan highlighted the launch of Virgin Mobile UAE as an exciting milestone of Q3 for EITC. “Featuring an innovative, all-digital platform, Virgin Mobile is ushering a new era of connectivity and simplicity for our customers, while also reinventing the traditional telecom business to a more efficient and lower cost base operating model,” he said.
As the company looks towards a “smart future”, Mr. Sultan said EITC is investing in pushing forward its digital transformation agenda and driving the company to its next phase of growth as a fully integrated ICT player.
“Our increased reliance on the IoT has fundamentally changed the way people interact and we therefore must change the way we do business,” he said. “To this end, we announced a significant change in our organizational structure with the creation of three new business divisions to support EITC’s growth.”
Mr. Sultan added, “The newly formed ICT Solutions division will provide UAE government entities and enterprises with advanced end-to-end ICT infrastructure and services; the Digital Lifestyle and Innovation division will be focused on the development of innovative products and services for UAE consumers, including smart home services, and the Infrastructure division will consolidate all infrastructure, network and data center operations under the EITC umbrella.”
As part of the new organizational model, Mr. Sultan announced the nominations of Fahad Al Hassawi and Farid Faraidooni as Deputy CEOs, each with oversight and mandate on specific areas. “I have the upmost confidence that together we will successfully drive EITC’s transformation agenda and allow expansion into new areas of growth,” he said.