Qtel exceeds Q3 profitability forecasts by some measure

Qtel Group announced that Q312 revenues reached QAR 8.64 billion (US$2.37 billion), in line with analyst consensus estimate of QAR 8.48 billion. EBITDA was up four per cent year-on-year to QAR 3.86 billion, four per cent below consensus estimates of QAR 4.02 billion.

Net profit was up 73 per cent year-on-year reaching QAR 1.076 billion.

As of September 30 the Group’s consolidated customer base stood at 89.2 million, representing an 8.2 per cent year-on-year increase in total customer numbers. 

Alcatel-Lucent looks to shed 5,490 jobs

Alcatel-Lucent is to cut 5,490 jobs worldwide as part of its cost-saving efforts first outlined in July, according to the CFDT union.

Reuters reports that the union, which represents more than 15 per cent of the company’s 9,000 staff in France, has called on the French government to intervene with 1,430 of the jobs due to go in the vendor’s home country.

CFDT – which called the move a "human and industrial catastrophe" – said the majority of the jobs would go in support functions such as sales, marketing, finance and human resources. Around 3,300 jobs will go in Europe, the Middle-East and Africa, 1,200 in the Americas and 990 in Asia Pacific.

The infrastructure vendor has been hit by weak demand and increased competition and also plans to exit unprofitable markets and contracts in an effort to turn its fortunes around.

The company announced it would cut its global workforce by “around 5,000” in July as it looks to reduce its cost base by around US$2 billion. The company employs around 76,000 people globally, according to Reuters.

Nokia sees handset volume and profitability decline, though NSN offers positive point

Nokia reported a continued weak performance for its devices business, with Stephen Elop, the company’s CEO describing its third quarter as “difficult”. However, the Nokia Siemens Networks (NSN) joint venture provided something of a positive, with the executive describing this unit’s performance during the period as “remarkable”.

During the period, Nokia shipped 82.9 million handsets in total, down 22 per cent year-on-year from 106.6 million. It saw volumes decreasing in both its Smart Devices unit and its mass-market Mobile Phones unit.

On a group level, it announced a net loss for the quarter of €943 million (US$1.24 billion), compared with a €151 million loss in Q311, on revenue of €7.24 billion, down 19 per cent from €8.98 billion.

The Devices & Services unit saw an operating loss of €683 million, compared with a prior-year profit of €168 million, on sales of €3.56 billion, down 34 per cent from €5.39 billion.

Within this, Smart Devices volumes fell by 63 per cent year-on-year to 6.3 million units from 16.8 million, with revenue falling by 56 per cent to €976 million from €2.19 billion.

Less than half of those units – 2.9 million, or 46 per cent – were from its Windows Phone-powered Lumia range. As had previously been suggested, the company noted that it had seen “lower operator and distributor demand for Lumia” in North America, as it prepares to launch its first smartphones powered by Windows Phone 8. It also noted “lower volumes of our Symbian and Lumia products” in Europe from the prior quarter.

And in its mass-market Mobile Phones unit, volumes fell by 15 per cent year-on-year to 76.6 million from 89.8 million units, with sales down 19 per cent to €2.37 billion. Its average selling price fell year-on-year due to increased volumes of lower-priced devices, although it has stabilised quarter-on-quarter, following the launch of its full-touch Asha devices (which are now being referred to as “smartphones”).

Contrastingly, NSN saw an operating profit of €182 million, compared with a prior-year loss of €114 million, on net sales which increased by three per cent to €3.5 billion.

It was said that this was due to “higher sales of infrastructure equipment and slightly higher sales of services, partially offset by a decline in sales of business areas not consistent with NSN’s strategic focus”.

Nokia’s outlook for the fourth quarter is fairly bleak, with its Devices & Services operating margin expected to be “approximately negative six per cent, plus or minus four percentage points”. It noted that competitive industry dynamics are continuing to negatively affect both its Smart Devices and Mobile Phones unit, and increased expenses in Devices & Services related to new launches, partially offset by cost reductions.

Intigral appoints new CEO, in acting capacity

Intigral announced the appointment of Ismaeel Makdisi as the company’s acting CEO, replacing Karim Daoud, who served as CEO for two years.

Makdisi’s appointment was announced as part of the company’s new growth strategy, which will focus on its expansion into international markets, the building of new capabilities and the creation of new technologies.

Makdisi previously served as Intigral’s general counsel and as VP of Corporate Affairs, in addition to heading its Mobile Advertising division. With over 21 years of experience in the US and the Middle East and North Africa, he brings a wealth of diversified knowledge of the media and telecommunications industries.

Established in 2009, Intigral offers a one-stop shop for the region’s telecom operators, providing services including content creation, repurposing, censoring and publishing for local audiences; management of video-on-demand (VOD) services provided by telecommunications operators; and the development and management of web portals. The company also offers digital storefront and applications development and management expertise.

Intigral is a joint venture between STC and the Malaysian media conglomerate, All Asia Networks (ASTRO) with a current workforce of 240 professionals based in its Dubai and Riyadh offices.

Q.NBN partners with Ericsson for FTTx deployment

Q.NBN and Ericsson announced an agreement to empower Qatar with high-speed broadband fibre access and will see the leading provider of communications technology and services deploy a broadband network infrastructure using optical fibre (FTTx).

The agreement is described as the largest of its kind for Ericsson in Qatar, and the technology provider will begin rolling out immediately. It will also facilitate competitive, high speed broadband services in the country through the deployment of Ericsson’s fibre optic solution, fibre cables and central offices. Q.NBN will deploy a passive network infrastructure, providing equal and open access to operators to offer choice for the end-user and efficiently leverage existing and new infrastructure in Qatar.

“Q.NBN represents a bold step forward in Qatar’s drive to be a leading knowledge based economy and continuous access to a high-speed network is essential for economic development and innovation,” said Mohammed Al Mannai, Q.NBN’s CEO. “Together with Ericsson we hope to be able to enrich connectivity in Qatar and continue to provide an ideal environment for business development and economic growth.”

Qatar’s government established Q.NBN in 2011 to accelerate the rollout of a nationwide high-speed, accessible broadband FTTx network. The company aims to provide fibre access to citizens and businesses across Qatar, achieving coverage targets of 95 per cent. The resulting high-speed broadband connectivity will enable the effective use of multimedia and communications applications that are central to developing the country’s knowledge-based economy.