News
A summary of all the essential financial news in the telecoms world this week
Huawei announces half year results
In the first half of 2023, Huawei generated CNY310.9 billion in revenue, a year-on-year increase of 3.1%, and achieved a profit margin of 15%.
The increase was the first since 2020, when the firm became subject to major sanctions by the US that would see them cut off from numerous global markets.
The ICT infrastructure unit of the company contributed $23.1 billion, its consumer business $14.3billion, cloud business $3.3 billion, its digital power business $3.34 billion, and its intelligent automotive solution (IAS) business $139 million.
“In the first half of 2023, our ICT infrastructure business remained solid and our consumer business achieved growth. Our digital power and cloud businesses both experienced strong growth, and our new components for intelligent connected vehicles continue to gain competitiveness,” said Huawei Chairwoman Sabrina Meng.
TIM’s stock up after KKR bid
TIM’s stock was up 0.5% today after the US investment fund KKR and the Italian government signed a Memorandum of Understanding (MoU) that would allow the Italian treasury to take up to a 20% stake in TIM’s NetCo following any binding offer from KKR.
Back in June, KKR made a non-binding offer of around €23 billion for NetCo, which has since led to exclusive negotiations.
Sources say that the deal would also see the government play a “decisive role” in “defining the strategic choices” of the business.
Telesat stock jumps up 50%
The shares of Canadian telecommunications satellite operator Telesat have jumped 50% after the firm announced it would swap suppliers for its planned Lightspeed global internet network.
Canadian space company MDA will now build the satellites, instead of the previously agreed French-Italian manufacturer Thales Alenia Space, resulting in total savings of around $2 billion, the company confirmed.
“I’m incredibly proud of the Telesat team for their innovative work to further optimize … resulting in dramatically reduced costs,” said Telesat CEO Dan Goldberg in a statement.
The company’s Q2 results have also been released this week. Revenue stood at $180 million, a year-on-year decrease of 4%
Net income rose to $520 million, compared to a net loss of $4 million last year. Telesat attributed this to a $260 million payment from the Federal Communications Commission for clearing spectrum in the US that will now be used for 5G services.
Indonesia’s Telkom revenue on the rise
On the release of its half-year financial results published this week, Indonesia’s Telkom saw a year-on-year revenue increase of 2.1% to IDR 73.5 trillion ($4.77 billion).
The firm cites the continued growth of mobile data and IndiHome (a home telephone, internet, and Internet Protocol television services unit) for the growth.
Data, internet, and IT services revenues grew by 6.1% year-on-year to IDR 41.6 trillion ($2.7 billion).
The firm ended June with net cash of IDR 25.6 trillion ($1.7 billion), down 26.7%, operating expenses in 2023.
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