BlackBerry records profit for the quarter to end-February

BlackBerry reported a profit for the quarter to February 28, 2015 (its fiscal Q4) of US$28 million, compared with a prior-year loss of US$423 million, on revenue of US$660 million, down from US$976 million. On an operating level, it narrowed its loss to US$106 million from US$537 million.

The company saw investment income of US$115 million related to the sale of its stake in the Rockstar patent venture.

It noted that in the quarter, it saw a “normalised positive cash flow” of US$76 million, compared with US$784 million cash used in the same quarter last year.

BlackBerry also had a cash and investments balance of US$3.27 billion at the end of the period, up US$608 million year-on-year, and “matching the highest balance in company history”.

Revenue breakdown for the quarter was approximately 42 per cent hardware, 47 per cent services, and 10 per cent software.

Software revenue was up 20 per cent year-on-year to US$67 million, an encouraging move given the company’s ongoing transition to a more software-driven revenue stream, away from its more traditional hardware- and services-driven model.

During the quarter, it recognised hardware revenue on approximately 1.3 million BlackBerry smartphones – with approximately 1.6 million sold through to end customers.

As the company refreshed its devices portfolio, it has also seen its average selling price increase to US$211, compared with US$180 in the earlier sequential quarter.

BlackBerry noted a number of positives for the fourth quarter, including the launch of its Classic smartphone, a partnership with Google to support Android for Work, and completion of its Secusmart acquisition.

For the full year, net loss was US$304 million, compared with US$5.87 billion in the year to March 2014, on revenue of US$3.34 billion, down from US$6.81 billion.

Botswana Telecom joins Vodafone’s Partner Market programme

Vodafone has expanded its presence in Africa via a new ‘Partner Market’ agreement with Botswana Telecommunications Corporation Limited (BTCL).

The deal will see BTCL become Vodafone’s preferred partner in Botswana.

According to Vodafone Partner Markets chief executive Stefano Gastaut, this will enable Vodafone to expand the reach of its products and services within Africa and extend its partner market footprint to 55 markets worldwide (in addition to the 26 countries where it actually owns mobile operations).

BeMOBILE, the mobile arm of BTCL, was established in 2008 and claims to have the widest network coverage in Botswana, reaching almost 90 per cent of the population. According to GSMA Intelligence it is the country’s third-largest (and smallest) mobile operator with 716,000 connections and a 21 per cent market share. Unlike its rivals MTN and Orange, it has not yet launched 3G services and instead only supports 2G networks.

Vodafone said its multinational corporate customers will benefit from the addition of Botswana to their existing contracts for international managed services, while continuing to be serviced via a single point of contact.

In November, Vodafone ramped up its sub-Saharan presence by partnering with Afrimax Group, a company that deploys TD-LTE-based networks, to cooperate around the launch of voice and data services.

Etisalat Misr rolls out Ericsson’s Radio Dot system

Ericsson and Etisalat have partnered to deploy Ericsson’s Radio Dot system. This is the first implementation of its kind in Egypt and demonstrates the solution’s capabilities catering to the fast-growing demand for data traffic in Egypt.

Ericsson Radio Dot system is a cost-effective, no-compromise solution to indoor coverage challenges. It is designed to support operators in consistently delivering a better user experience for both voice and data in the broadest range of enterprise buildings and public venues.

Ericsson’s solution fully integrates with Etisalat’s network and provides seamless coverage for Etisalat’s consumer and enterprise customers in the broadest range of in-building deployment scenarios, ensuring consistent delivery of excellent customer experience in voice and data services.

 

 

Ericsson CMO pushes company’s move out of its comfort zone

Ericsson’s chief marketing officer and chief commercial officer, Helena Norrman, said the company had been preparing for the right conditions to introduce its ongoing transformation strategy for some years now, and that despite Ericsson’s leadership in the telecom infrastructure business, the company sees its future in areas that it does not currently exercise dominance in.

Speaking to Comm. on her first visit to Dubai, Norrman said, “We are of the belief that our future success will not be based on hanging on to what we already have, but rather developing into new areas. We are investing in what is beyond the core of what we do, and we believe market conditions are such that we will remain relevant in the next phase of the evolution of the telecom sector.”

Ericsson has previously stated that it intends to maintain its strong position in its core business areas of radio, core and transmission, and telecom services, while also looking to establish leadership in specific areas identified as cloud, IP networks, TV and media, OSS/BSS, as well as vertical industrial and societal industries such as transportation, public services, and energy.

While the time horizon for the achievement of the first wave of transformative undertakings at Ericsson is set at 2020, Norrman says most of the five areas that Ericsson is placing a greater emphasis on will and have already begun to produce results, and will continue to do so in the years to come. She believes that partnerships will be a strong element in the company’s journey, with the bottleneck to further uptake of mobile digital services being more about affordability rather than the availability of the technology.

“In the development of the telco sector there was a period of vendor strength, followed by a period of operator strength. What I think we are currently in an era of partnership and I believe this will be to the overall benefit of all participants in the ecosystem,” Norrman said.

 

Ericsson looking to enable game-changers

Ericsson is on a mission to ‘enable game changers’, according to Rafiah Ibrahim, Ericsson’s head of Middle East and East Africa. Speaking recently at a roundtable event she said, “We are focussing on new areas to Ericsson such as broadcast and media, and are appealing to three groups of change makers, namely operators, broadcasters, and people.” She continued, “Operators are looking to generate more revenue, deliver more services, and operate the best networks, and we are actively involved in assisting them to achieve this.”

During the course of Mobile World Congress in Barcelona at the beginning of March, Ericsson announced a number of wide-reaching agreements with operators from the Middle East, including companies such as Ooredoo, Etisalat, STC, and Zain for projects including a LTE-Advanced Small Cell solution, 5G, Radio Dot, and a Business Support Systems transformation project.

Looking ahead, Ibrahim says Ericsson shall remain active in areas as they relate to the core network, but has identified other activities of interest including OSS/BSS, cloud and IP, and managed services, while also developing solutions for specific industrial and societal verticals such as transportation, public services, and energy.