Financial

Vodafone revenue dragged lower by Spain and South Africa

Operator hoping for a broader improvement in the second half of its financial year

Reuters

LONDON (Reuters) - Vodafone reported another big quarterly drop in its main revenue measure, as weakness in South Africa and Spain offset stabilization elsewhere in Europe, and said a broader improvement is not expected until later in the year.

The world's second-biggest mobile operator is ramping up spending on new, faster 4G networks to satisfy customers' growing appetite for data.

Nokia's fortunes brighten on heavy network spending

Numbers follow similar positive surprises from its bigger rivals, Sweden's Ericsson and China's Huawei

Reuters

HELSINKI (Reuters) - Nokia surprised investors with strong quarterly earnings and raised its full-year profit margin forecast as network operators install more powerful systems to cope with surging mobile data traffic.

The Finnish company sold its once-dominant phone business to Microsoft in April, leaving it more reliant on a mobile network equipment business that shrank by 8 percent in the April-to-June quarter.

Nortel Networks to pay U.S. bondholders up to $1 billion in interest

If approved by US, settlement could affect Nortel retirees in Canada and UK

Reuters

WILMINGTON Del. (Reuters) - Nortel Networks Inc, the U.S. unit of defunct Canadian telecom company Nortel Networks Corp, has agreed to pay up to about $1 billion in interest that has accrued on the $3.9 billion it owes to its U.S. bondholders, a court filing showed.

Thursday’s settlement comes as Nortel’s bankrupt units in Canada and Europe are fighting with the U.S. unit over how to divide $7.3 billion raised by liquidating the global telecommunications company.

Mexico telecoms overhaul starts to drag on America Movil

Regulations were initiated by President Enrique Pena Nieto to drive telecoms competition

Reuters

MEXICO CITY (Reuters) - Carlos Slim's America Movil, Latin America's biggest telecoms company, said on Monday that new regulation in its core Mexico market was beginning to weigh on its performance.

Lower exchange rate and financing costs helped the company increase its profit by 32.7 percent to 18.83 billion pesos ($1.45 billion) in the second quarter. Revenue also rose 4 percent to 202.63 billion pesos.

But the results were below expectations forecast in a Reuters poll of five analysts of a net profit of 20.74 billion pesos ($1.6 billion).

Huawei's H1 revenue up 19 percent year-on-year at $22 billion

No. 2 telecom equipment maker expects to generate an operating margin of 18.3 percent in the first six months of 2014

Reuters

TAIPEI (Reuters) - Huawei Technologies Co Ltd, the world's No. 2 telecom equipment maker, said on Monday it will achieve sustainable growth in 2014 after posting a 19 percent jump in first-half revenue to 135.8 billion yuan ($21.88 billion).

The Shenzhen-based company also said it expected to generate an operating margin of 18.3 percent in the first six months of 2014. The company did not elaborate in its brief statement.

Ericsson's networks unit recovers, shares rally

In China, Ericsson is selling equipment for a massive rollout of fourth-generation mobile networks

Reuters

STOCKHOLM (Reuters) - A recovery in Ericsson's <ERICb.ST> network equipment business pointed to strong results for the rest of the year, propelling its shares toward their biggest daily gain in more than three years.

In China, Ericsson is selling equipment for a massive rollout of fourth-generation mobile networks. In developed markets, it is benefiting from capacity upgrades as network operators cope with a surge in mobile data traffic.

Ericsson expects recent contract wins to boost revenue during the second half of the year.

Google seen best placed for growth as it transitions to mobile

Google's capital investment budget has topped $17 billion over the past five years

Reuters

(Reuters) - Google Inc <GOOGL.O> <GOOG.O> is the best placed of any company to benefit from the shift to mobile, increased local advertising and wearables, analysts said after the search giant posted its 18th straight quarter of 20 percent-plus revenue growth.

At least eight brokerages raised their price targets on the stock on Friday by as much as $75, to a high of $745.

Google shares were up 2 percent at $593.37 in early trading on the Nasdaq.

Spain's Gowex files for bankruptcy, ex-CEO could face 10 years in jail

Former Chief Jenaro Garcia Martin misrepresented financial accounts for at least 4 years

Reuters

MADRID (Reuters) - Spanish wireless networks provider Gowex filed for bankruptcy on Monday, a week after an accounting fraud at the firm was revealed, while the High Court said its founder could face a jail sentence of more than 10 years.

Law firm Velez & Urbina said Gowex had decided to file for bankruptcy because it was in a state of "imminent insolvency" and faced a "financial standstill" after a high number of contracts were ended and new projects were canceled.

Spain's Telefonica in talks to exit Telecom Italia: report

Move could ease regulatory pressure in Brazil's wireless market

Reuters

(Reuters) - Spain's Telefonica SA is in talks to sell its stake in Telecom Italia in a move that could ease regulatory pressure in Brazil's wireless market, Brazilian newspaper Folha de S.Paulo reported on Friday.

Telefonica is negotiating a deal with investment funds to sell its stake in Telecom Italia, the paper reported, without saying how it obtained the information. Telefonica is left with a nearly 15 percent direct stake in the Italian company after fellow investors voted to dismantle their controlling bloc.

EU clears Telefonica Deutschland's takeover of E-Plus

Raises prospects of more deals to come across Europe's telecoms markets

Reuters

BRUSSELS/FRANKFURT (Reuters) - European regulators have cleared Telefonica's bid to consolidate the German mobile market by buying smaller rival KPN's E-Plus for 8.6 billion euros ($11.7 billion), raising prospects of more deals to come across Europe's telecoms markets.

The European Union's powerful antitrust chief Joaquin Almunia said on Wednesday that Telefonica agreed to concessions - including selling some radio spectrum and renting out capacity on its network to smaller rivals - to ensure that the deal does not lead to higher prices for customers.

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