Sunday, August 11, 2019

Singtel revenue stable despite lower ARPU and impact of Airtel India

Singtel posted revenue of S$4.11 billion for the quarter ended 30-June-2019, up 2% in constant currency, on growth in Consumer Australia and the Group’s digital businesses which continued to scale. Net profit was S$541 million for the first quarter, down 35% largely due to Airtel’s losses and higher depreciation and amortisation costs in network and spectrum across the Group. Excluding Airtel, however, net profit was down 3%.

Ms Chua Sock Koong, Singtel Group CEO said, “The Airtel impact aside, business is stable as we continued to execute to strategy in the first quarter. We added postpaid mobile customers in Singapore and Australia and grew our digital businesses Amobee and Trustwave. This was achieved against a backdrop of heightened competition, sustained industry headwinds and subdued economic growth. We are focused on the digitalization of our core communications business where innovations in digital products and services are proving to be key differentiators, leveraging our network superiority. We are also driving productivity gains and cost savings through digitalisation.”

Some highlights:


  • Overall pre-tax earnings contributions fell 14% due to Airtel in India as higher network costs, depreciation and finance charges from its 4G network expansion affected financial performance. This quarter, Airtel India saw improved ARPU which drove growth in its mobile revenue. E
  • Telkomsel Indonesia posted an 18% increase in earnings on robust growth in data and digital services. 
  • In Thailand, AIS and Intouch’s earnings were mainly impacted by an additional provision for statutory payments under revised labour legislation. 
  • In the Philippines, Globe saw strong data revenue growth from its mobile and broadband businesses.
  • In Australia, Optus is rolling out its 5G fixed wireless service which is targeted to reach 1,200 sites by March 2020. Revenue increased 8% led by growth in NBN migration revenue, equipment sales and handset leasing. EBITDA rose 9% primarily from higher NBN migration revenue. Optus continued to drive customer growth, adding 50,000 postpaid handset customers. Mobile service revenue declined 7% from lower ARPU due to an increased mix of SIM-only customers and heightened data price competition. Optus Sport now reaches over 700,000 customers with compelling content on the Premier League, Champions League Final and the FIFA Women’s World Cup. Optus also launched Apple Music to further boost its content suite.
  • In Singapore, mobile revenue was stable. Higher equipment sales offset the decline in local and roaming voice services. Postpaid customers grew 35,000 this quarter with strong demand for its all-digital, no-contract GOMO plans. Revenue from fixed services was down 3%, excluding contributions from the 2018 FIFA World Cup broadcast in the prior period. Pay-TV customers increased by 1,100 on a sequential quarter basis. Operating expenses fell 6% from strong cost management mainly through digitalisation. However, lower voice revenue resulted in a 4% decline in EBITDA.
  • Group Enterprise revenue slid 5% due to lower Optus Business volumes and the continued pressure on carriage services amid a more cautious business environment. Optus Business in Australia was impacted by weak demand from the government and financial sectors, and a large ICT contract in the same quarter last year. Excluding Optus Business, revenue would have been stable. 
  • Group Digital Life’s revenue rose 17%, driven by the continued growth in Amobee’s programmatic advertising business and contributions from Videology. Mobile video streaming service HOOQ saw healthy revenue growth from a higher base of paying subscribers in Southeast Asia and India. Amobee continues to deliver positive EBITDA.


Global Cloud Xchange negotiates with bondholders

Global Cloud Xchange (GCX), a subsidiary of Reliance Communications and owner/operator of a global, undersea cable system, announced a two-week forbearance agreement with 87% of its bondholders.

GCX said the bondholders have committed not to take action for a minimum period of two weeks with the possibility of extending the agreement for an additional two weeks, assuming GCX continues to progress in its negotiations.  The forbearance agreement provides for, among other things, a two per cent consent fee payable to forbearing noteholders and payment of accrued interest to all noteholders (in each case with such amounts being added to the principal amount of the notes rather than being paid in cash); a fee equal to five percent of the outstanding principal amount of the bonds payable to forbearing noteholders if the notes are subsequently refinanced in full; the appointment of a Senior Managing Director of FTI Consulting as a Chief Restructuring Officer; and certain requirements that need to be fulfilled to maintain the forbearance agreement.

 “We appreciate our lenders continued support as we take these next steps and look forward to using the additional time the forbearance agreement provides to pursue the desired refinancing transaction under the best possible terms,” said Bill Barney, Chairman and CEO, GCX. “Meanwhile, we continue to operate as usual as a fundamentally strong company that is uniquely positioned to capture opportunities in our fast-growing markets.”

  • In March 2019, Global Cloud Xchange (GCX) announced that its financial performance was on track per guidance for Financial Year 2018-19 (FY19), however, the company confirmed that it had retained Lazard as financial adviser "to evaluate refinancing options for the company and ensure that the upcoming maturity is addressed on competitive terms as soon as possible."

AOI sees early signs of recovery from hyperscale operators

On August 7, Applied Optoelectronics reported Q2 2019 revenue of $43.4 million, compared with $87.8 million in the second quarter of 2018 and $52.7 million in the first quarter of 2019. There was a GAAP net loss of $11.4 million, or $0.57 per basic share, compared with net income of $8.0 million, or $0.40 per diluted share in the second quarter of 2018, and a net loss of $10.5 million, or $0.53 per basic share in the first quarter of 2019. Non-GAAP net loss was $5.2 million, or $0.26 per basic share, compared with non-GAAP net income of $12.9 million, or $0.64 per diluted share in the second quarter of 2018, and a non-GAAP net loss of $5.4 million, or $0.27 per basic share in the first quarter of 2019.

“We are pleased with our execution in the quarter as we delivered revenue within our guidance range and achieved better than expected bottom-line results,” said Dr. Thompson Lin, Applied Optoelectronics Inc. founder and CEO. “The datacenter demand environment remained consistent with our expectations and we secured five new datacenter design wins. We continue to have good technical engagement with both existing and new customers and are encouraged by the positive response to our innovations.”

Some notes from the Q2 investor conference call:

  • 73% of revenue was for data center products, 23% for CATV products, and 4% for FTTH, telecom and other.
  • 72% of data-center revenue was from 40G and 23% was from 100G.
  • Telecom products revenue was $1.6 million compared with $4.2 million in Q2 2018 due to lower sales in China given geopolitical trade tensions.
  • There were three customers who constituted 10% or more of overall revenue. Two of these customers are hyperscale data center companies and they represented 30% and 29% of overall revenue. The third customer is in the CATV business and represented 14% of revenue.
  • During the quarter, AOI secured a total of five new design wins among two US-based data-center customers.
  • AOI said it is starting to see early signs of recovery among two of its hyperscale data-center customers. 
  • AOI recently showcased the ability of its 400G QSFP transceivers to break out into four individual 100G FR transceivers and interoperate with a leading 12.8 Tbps switch fabric ASIC.
  • Revenue from CATV products decreased 31% year-over-year to $9.8 million compared with $14.2 million in Q2 of last year due to weaker demand from North American MSOs and in China.
  • Regarding tariffs and global trade tensions, AOI execs said the company is able to adjust some of its manufacturing operations between its Taiwan and China factories

FCC Chairman Pai: Current RF exposure limits are good

FCC chairman Ajit Pai is proposing to maintain current RF exposure safety limits, saying the United States’ RF exposure limits for handheld devices are already among the most stringent in the world.

Pai's proposal would also establish a uniform set of guidelines for ensuring compliance with the limits regardless of the service or technology, replacing the Commission’s current inconsistent
patchwork of service-specific rules.

“The FCC sets radiofrequency limits in close consultation with the FDA and other health agencies. After a thorough review of the record and consultation with these agencies, we find
it appropriate to maintain the existing radiofrequency limits, which are among the most stringent in the world for cell phones,” said Julius Knapp, chief of the FCC’s Office of Engineering and Technology. As Jeffrey Shuren, Director of the Food and Drug Administration’s Center for Devices and Radiological Health, wrote to the FCC, “[t]he available scientific evidence to date does not support adverse health effects in humans due to exposures at or under the current limits…” and “[n]o changes to the current standards are warranted at this time.”

https://www.fcc.gov/rfsafety

DOCOMO invests in WSC Sports for AI-powered analytics

NTT DOCOMO Ventures has made an equity investment in W.S.C. Sports Technologies Ltd., a startup based in Israel that provides a platform capable of automatically creating sports video highlights in near real-time by utilizing AI and machine learning technologies to distribute to all sorts of digital media. Financial terms were not disclosed.
WSC Sports’ AI platform analyzes audio, video and data in a live broadcast and not only identifies each and every event that occurs in the game but also creates and distributes short-form videos by any parameter, such as players and scenes selected, to any digital destination.

In 2018, WSC Sports analyzed more than 17,000 sporting events and produced more than 850,000 videos.

Dell'Oro: 100 Gbps port shipments to peak in 2020

400 Gbps shipments are forecast to surpass 15 M switch ports by 2023, according to a recently published report by Dell’Oro Group. 100 Gbps port shipments are expected to peak in 2020, but still comprise more than 30 percent of data center switch ports during the next five years.

“The first wave of 400 Gbps switch systems based on 12.8 Tbps chips were introduced in the market in the second half of 2018,”said Sameh Boujelbene, Senior Director at Dell’Oro Group. “However, we do not expect material adoption of 400 Gbps until 2020 due to the lack of high volume, low cost 400 Gbps optics. The only Cloud Service Provider that started deploying 400 Gbps was Google, opting for 2×200 Gbps optics with an earlier time-to-market. Meanwhile, we expect other Cloud Service Providers, for instance Amazon, Facebook and Microsoft, to keep deploying 100 Gbps, and to probably use higher density 100 Gbps switch systems based on the 12.8 Tbps chips to lower costs,” added Boujelbene.

The Ethernet Switch – Data Center 5-Year Forecast Report provides more details about the timing of 100/200/400/800 Gbps and how the use cases may vary depending on the SerDes lane and market segment driving the speed.

https://www.delloro.com/news/400-gbps-shipments-to-surpass-15-m-switch-ports-by-2023/

Huawei plans 5G factory in Brazil

Huawei has agreed to build a factory in Brazil to produce 5G base stations and other networking products.

The factory, which represents an investment of US$800 million, is expected to open by 2021 in the state of Sao Paolo. The deal was confirmed by the Governor of Sao Paolo, João Doria, during an official visit to China.





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CenturyLink to provide US Census Bureau with cloud connectivity at 40G and up

CenturyLink will provide secure cloud connectivity to the U.S. Census Bureau supporting the 2020 census.

Under the contract, CenturyLink will help digitize the 2020 Census by providing the Census Bureau with Managed Trusted Internet Protocol Services (MTIPS) at speeds of 40 Gbps or higher. The Census Bureau task order runs from July 2019 until the end of December 2020 and was awarded via the General Services Administration's Networx Universal contract.

CenturyLink said its highly secure, reliable and scalable MTIPS infrastructure capable of detecting and defending against aggressive network attacks while meeting or exceeding the federal government's strict network standards and requirements.

"Our high-speed MTIPS service will provide the Census Bureau with secure connectivity that enables it to move its 2020 Census to an online digital platform and carry out its important data-gathering mission in the most secure, reliable and cost-effective way," said David Young, CenturyLink senior vice president, strategic government. "We're eager to help the 2020 Census become the first to be completed largely online, with about half of all American households expected to submit their responses digitally."

http://news.centurylink.com/2019-08-08-CenturyLink-Provides-Secure-Cloud-Connectivity-to-U-S-Census-Bureau-for-2020-Census

McAfee acquires NanoSec for container security

McAfee has acquired NanoSec, a start-up offering a multi-cloud, zero-trust application and security platform for containers. Financial terms were not disclosed.

NanoSec developed a wrapper technology that works as an agent and runs on any flavor of Linux and many flavors of Windows OS. NanoSec also provides an agentless Container scanning and Config Audit (including CIS Benchmarks). The NanoSec Intelligent backend can be hosted by the customer on any midsize server on-premise/cloud or as a SaaS service.

Nanosec is based in Santa Clara, California and Bengaluru, Karnataka, India.

McAfee said the acquisition will enable organizations to improve governance and compliance and to reduce risk of their cloud and container deployments. NanoSec’s security capabilities will be applied to applications and workloads deployed in containers and Kubernetes and will be integrated into McAfee MVISION Cloud and MVISION Server Protection offerings. These capabilities include continuous configuration compliance and vulnerability assessment as well as runtime application-level segmentation for detecting and preventing lateral movement of threats.

“NanoSec’s technology is a natural extension for McAfee MVISION Cloud, enhancing our current CASB and CWPP products, and adding to our ‘Shift-Left’ capabilities to deliver on the DevSecOps best practice to improve governance and security," said Rajiv Gupta, senior vice president and general manager of the cloud security business unit, McAfee.

“Joining forces with McAfee means that our groundbreaking capabilities including our unique application-identity based approach for app-level protection and micro-segmentation will be available on a global scale,” said Vishwas Manral, founder and CEO of NanoSec.

Thursday, August 8, 2019

China Mobile's customer growth rate slows to 3.2% as ARPU declines

China Mobile was serving 935 million mobile lines as of 30-June-2019, up 3.2% from 906 million a year earlier. Of these, 734 million lines were served on the 4G network, up 8.4% compared to mid-2018.

China Mobile reported a 10.1% decline in Mobile ARPU to RMB 52.2 (US$7.40) from RMB 58.1 (US$8.24) a year earlier.

In the first half of 2019, China Mobile recorded operating revenue of RMB 389.4 billion (US$55.24 billion), which represented a decrease of 0.6% compared with the same period last year. Of this, revenue from telecommunications services accounted for RMB351.4 billion, down by 1.3% year-on- year.

Nevertheless, China Mobile's EBITDA improved to RMB151.1 billion, up by 3.6% compared with the first half of 2018. This represents an EBITDA margin of 38.8%, or an increase of 1.6 percentage points year-on-year.

Capital expenditure for the first half of 2019 was RMB 85.2 billion (US$12.08 billion).

Mr. Yang Jie, Chairman of China Mobile, commented, "In the first half of 2019, we witnessed ever-intensifying competition within the telecommunications industry and from cross-sector players. When this is combined with the continued implementation of the national policy on "speed upgrade and tariff reduction", the operating environment has become more complex and is full of uncertainty. Faced with these challenges, we have introduced timely and measured adjustments to our operations. While adhering to the "Big Connectivity" strategy and advancing the integrated development of the "four growth engines" (personal mobile, household, corporate and emerging businesses), we have maintained a clear focus on high-quality development, supported by solid progress in our business transformation and upgrade. In addition, we have stepped up reforms and innovation, laid out plans for 5G development and introduced measures to further reduce costs and increase operating efficiency."

Additional notes:

In June 2019, China Mobile was granted a 5G commercial licence. The company says economic and social development in China is creating an immediate demand for 5G, "presenting opportunities for the transformation and development of the information and communications industry like never before. "

https://www.chinamobileltd.com/en/file/view.php?id=216467

AWS automates data lake formation

Amazon Web Services (AWS)

, an Amazon.com company (NASDAQ: AMZN), announced the general availability of

AWS Lake Formation, a fully managed service that makes it much easier for customers to build, secure, and manage data lakes, entered general availability status.

The service simplifies and automates steps usually required to create a data lake, including collecting, cleaning, and cataloging data, and securely making that data available for analytics.

AWS is supporting a variety of data sources using pre-defined templates to automatically classify and prepare the data,. Customers can then analyze this data using their choice of AWS analytics and machine learning services, including Amazon Redshift, Amazon Athena, and AWS Glue, with Amazon EMR, Amazon QuickSight, and Amazon SageMaker following in the next few months. There are no additional charges required to use AWS Lake Formation, and customers pay only for the underlying AWS services used.

“Our customers tell us that Amazon S3 is the ideal place to house their data lakes, which is why AWS hosts more data lakes than anyone else – with tens of thousands and growing every day. They’ve also told us that they want it to be easier and faster to set up and manage their data lakes,” said Raju Gulabani, Vice President, Databases, Analytics, and Machine Learning, AWS. “That’s why we built AWS Lake Formation, so customers can spend more time learning from their data and innovating, rather than wrestling that data into functioning data lakes. AWS Lake Formation is available today and we’re excited to see how customers use it as one of the building blocks for growing and transforming their businesses and customer experiences.”

https://aws.amazon.com/lake-formation


Broadcom to acquire Symantec's Enterprise Security for $10.7B

Broadcom agreed to acquire Symantec' Enterprise Security assets, which include the Symantec name, for $10.7 billion in cash. The acquired product portfolio includes enterprise endpoint security, web security services, cloud security and data loss prevention.



Hock Tan, President and Chief Executive Officer of Broadcom, said, "M&A has played a central role in Broadcom's growth strategy and this transaction represents the next logical step in our strategy following our acquisitions of Brocade and CA Technologies. Symantec's enterprise security business is recognized as an established leader in the growing enterprise security space and has developed some of the world's most powerful defense solutions that protect against today's evolving threat landscape and secure data from endpoint to cloud."

“This is a transformative transaction that should maximize immediate value to our shareholders while maintaining ownership in a pure play consumer cyber safety business with predictability, growth and strong consistent profitability. In addition it allows the Enterprise Security business to grow and compete on an enterprise platform with a worldwide sales and distribution reach which can service our existing customers,” said Rick Hill, Symantec's Interim President and CEO. He added, “It also allows our Norton LifeLock business, a world recognized leader in consumer and small business cyber safety to operate independently and give investors a clear understanding of the growth opportunity and strong financial performance.”

Symantec expects to issue a special dividend of $12.00 per share for shareholders.

Broadcom also reaffirmed its fiscal year 2019 revenue guidance of $22.5 billion, with $17.5 billion from semiconductor solutions and $5 billion from infrastructure software.

https://investors.broadcom.com/

Broadcom debuts PCIe 4.0 Ethernet Adapters and Fibre Channel HBAs for AMD EPYC

Broadcom's NetXtreme E-Series Ethernet adapters and Emulex LPe35000-series HBAs are now supporting new AMD EPYC 7002 Series Processor-based systems- the world’s first x86 data center CPU with PCIe 4.0.

Broadcom says its 200GbE NetXtreme E-series and Gen 7 32GFC LPe35000-series are the world’s first portfolio of Ethernet adapters and Fibre Channel HBAs with support for PCIe 4.0.

“Thor and AMD EPYC 7002 Series Processors provide the best performing and most secure Ethernet connectivity and compute platform in the industry,” said Ed Redmond, senior vice president and general manager, Compute and Connectivity Division, Broadcom. “Thor, with 200GbE bandwidth and silicon root of trust, running on AMD PCIe 4.0 platforms, enable the industry to achieve greater levels of performance and security for hyperscale and enterprise data centers.”

“The Emulex LPe35000 HBA with PCIe 4.0 and NVMe over Fibre Channel doubles mission-critical workload bandwidth, while cutting host CPU utilization in half,” said Jeff Hoogenboom, general manager, Emulex Connectivity Division, Broadcom. “We are excited to work with AMD and our OEM customers to deliver the fastest, most secure Fibre Channel HBAs for enterprise workloads.”

Broadcom is now sampling Thor-based dual-port 100GbE and single-port 100GbE OCP 3.0, OCP 2.0, and PCIe NIC adapters to qualified customers.

Lumentum posts stronger results even as sales to Huawei drop 25%

Lumentum reported net revenue of $404.6 million for its fiscal fourth quarter ended June 29, 2019, with GAAP net loss attributable to common stockholders of $(25.8) million, or $(0.34) per diluted share.

For comparison, net revenue for the preceding quarter was $432.9 million, with GAAP net loss of $(74.3) million, or $(0.98) per diluted share. A year ago, net revenue for the same period (fiscal fourth quarter of 2018) was $301.1 million, with GAAP net income of $25.7 million, or $0.40 per diluted share.

Optical communications revenue for the quarter was $356.8 billion, down 5.6% compared to the preceding quarter.

For the full fiscal year 2019, Lumentum reported net revenues of $1,565.3 million, with GAAP net loss attributable to common stockholders of $(37.9) million, or $(0.54) per diluted share.

"An eventful fourth quarter capped off an exciting fiscal 2019 during which we made significant progress against our strategic goals and achieved record results with revenue increasing 25% to more than $1.5 billion and operating margin expanding to more than 20%," said Alan Lowe, President and CEO. "With market leading positions in the growing telecom and 3D sensing markets, a datacom strategy that profitably benefits from growth in cloud and 5G wireless network deployments, a commercial lasers business that bucked market trends and grew to record levels, and a more profitable business model driven by the increased scale and synergies from the Oclaro acquisition, we are well positioned for fiscal 2020 and beyond."

Some highlights from Lumentum:


  • Non-GAAP Operating Margin up 120 bps Q/Q on lower revenue
  • Revenue declined 7% Q/Q to $404.6M
  • Huawei sales declined 25% Q/Q primarily impacting telecom
  • Lasers sales declined 13% Q/Q as expected due to customer inventory levels
  • Datacom sales declined 28% Q/Q due to transceiver product line exits and divestiture
  • Record datacom chip sales, which increased 11% Q/Q
  • Record ROADM sales despite geopolitical disruption in the quarter
  • Industrial & Consumer sales grew 13% Q/Q driven by growth in both industrial and 3D sensing


http://investor.lumentum.com/investors/default.aspx

Amdocs acquires TTS Wireless, a mobile network engineering specialist

Amdocs has acquired TTS Wireless, a privately-owned provider of mobile network engineering services, specializing in network optimization, planning, and software-enabled solutions. Financial terms were not disclosed.

Amdocs plans to integrated TTS Wireless’ services at leading operators with its own Open 5G portfolio. This expanded offering will help operators accelerate and simplify the deployment of 5G networks with comprehensive network rollout solutions.

“This acquisition helps execute on Amdocs’ strategy of providing our customers around the world with an end-to-end 5G solution, so they can efficiently accelerate their plans to launch 5G networks, rapidly deploy the innovative new services this new technology enables, and benefit from new monetization models,” said Shuky Sheffer, Amdocs president and CEO. “At the same time, service providers also need to reduce cost per bit through automated operations, and smart network planning and optimization. The addition of TTS Wireless’ extensive network engineering services to the Amdocs Open 5G portfolio provides a compelling offering and highlights our commitment to be the leading independent provider of network services for 5G and the new generation of open cloud networks. This move will also enable operators around the world to benefit from the early 5G adoption experiences TTS Wireless has gained at leading carriers.”

“For over twenty years TTS Wireless has been successfully working with leading American operators,” said Lin Weng, TTS Wireless founder and CEO. “Together, TTS Wireless and Amdocs are well positioned to help operators accelerate their 5G journey with our expertise and experience in customer-focused design, delivery and optimization of mobile networks. With our highly-skilled network engineering and software development team joining forces with Amdocs, together we will strengthen the scope and scale of our offerings as we continue to deliver differentiated network services to Amdocs’ global base of service provider customers.”

Wednesday, August 7, 2019

Masergy touts Intelligent Service Control for SD-WAN, UCaaS

Masergy is highlighting the next evolution of its Intelligent Service Control (ISC) portal that offers a holistic view of clients’ global SD-WAN and Unified Communications as a Service (UCaaS) applications while enabling the ability to manage, secure, and optimize their network environments in real-time.

Masergy’s new ISC portal simplifies and unifies network and application management with real-time visibility, analytics and service control purpose-built for the multi-cloud enterprise.

The ISC portal delivers:

  • A single pane of glass delivers unified views of analytics for the customer’s global networks, UCaaS, WAN edge devices, and application performance.
  • Customizable dashboard views allow the customer to feature the information they need with views of top applications, security threats, network services, network usage, and open support tickets.
  • Real-time bandwidth controls provide the ability to modify port bandwidth globally across both public and private connections.
  • End-to-end visibility of application performance help customers make faster, more informed decisions about bandwidth allocation and service improvement.
  • Comprehensive self-service features empower the customer to control the network with site and contact management capabilities, ticket tracking, alarm notifications, invoicing, device reports, change history, and escalations.

“When it comes to accelerating the pace of IT and building a multi-cloud environment, unified network visibility is everything--global enterprises need a single source of truth for information about their cloud application performance,” said Masergy’s Chief Digital Officer Terry Traina.

Zayo plans new Salt Lake City to Denver route

Zayo is building a new long haul fiber network between Salt Lake City to Denver. Construction started last quarter and is anticipated to be completed in 2021.

The build will span more than 500 route miles along Interstate 70, a key transportation and commerce corridor. The route, which will be primarily underground, offers unique connectivity and diversity between Salt Lake City and Denver. Zayo’s existing route connects the two cities through Wyoming and into Utah.

The route will tie together two high-growth western markets and states. Colorado is among the nation’s fastest growing states with a diverse base of business and industry. Its economic growth has been driven by technology, aerospace, healthcare and

“This flagship route will provide diversity that no other provider can offer,” said Dennis Kyle, senior vice president of Mountain Region at Zayo. “With many Silicon Valley companies relocating their offices to Salt Lake City and Denver, Zayo is well positioned to provide them with high-capacity fiber infrastructure to fuel their growth and innovation.”

Deutsche Telekom reports solid financials

Deutsche Telekom's net revenue rose by 3.2% in organic terms in the first six months of 2019 to 39.2 billion euros, while adjusted EBITDA was up by 3.7% to 12.2 billion euros, and free cash flow by 9.0% to 3.1 billion euros.  There was a jump in reported net profit in the second quarter to 0.9 billion euros, up 90.7% compared to the prior-year level.

“We remain reliable,” said Tim Höttges, CEO of Deutsche Telekom. “Our business performed well in all areas again in the first half of 2019. That puts us in a position to deliver the results we promised.”


Some operational highlights

Germany – Between April and June, German mobile market service revenues increased by 2.4 percent against the prior-year period, thereby continuing the strong trend of the first three months of the reporting year. The average mobile data used per month by branded contract customers exceeded 3 gigabytes for the first time. Customers with an LTE rate plan and LTE-enabled smartphone used six times as much data as other customers.
In the fixed network, growth in fiber-optic-based lines (FTTH, FTTC/vectoring) continued. At 13.4 million lines, the number was up 22 percent on the prior-year figure. 521,000 lines were added in the second quarter. 83 thousand new customers opted for converged product under the name MagentaEINS.
Revenue in the Germany operating segment amounted to 5.4 billion euros in the second quarter, up by 1.2 percent against the prior-year period. Growth in adjusted EBITDA AL was even more substantial, up by 2.4 percent to 2.2 billion euros, leading to a margin of 40.0 percent compared with 39.5 percent in the second quarter of the prior year.
United States – T-Mobile US set new records again in the second quarter of 2019. Total revenue increased by 5.1 percent year-on-year to 11.0 billion U.S. dollars, while service revenues rose by 6.9 percent to 8.3 billion U.S. dollars.
Adjusted EBITDA AL increased by 6.0 percent to 3.2 billion U.S. dollars. The company accelerated its customer growth again with 1.8 million net customer additions in the second quarter, bringing the total customer count to 83.1 million at the end of June. T-Mobile US had a reason to celebrate: It recorded more than one million net customer additions in a quarter for the 25th time in a row. Of the total customer growth, 710,000 were branded phone postpaid net customer additions. In the United States, T-Mobile US remains far and away the fastest growing company on the market. The record low churn rate of 0.78 percent made a significant contribution to this. In the prior year, this figure had been 17 basis points higher.
Europe – Telekom's European national companies reported that the encouraging trends of last year continued steadily. Following the launch of converged products comprising fixed-network and mobile communications (FMC) in Austria and Poland in the second quarter, these offers are now available in all ten countries.  This segment continued to develop very well, with 330,000 new FMC customers. The number of customers thus increased by 53 percent compared with the end of June 2018, passing the 4 million mark for the first time. The companies again recorded strong development in the number of mobile contract customers, with 300,000 net additions, and broadband lines, with an increase of 63,000.
Systems Solutions – T-Systems managed to increase order entry compared with the prior-year period to 1.9 billion euros, 2.4 percent higher than between April and June 2018. Successes included wins in the area of the connected car.

https://www.telekom.com/en/media/media-information/archive/second-quarter-report-2019-578396

See also