Earnings, Oh We Got Earnings
By Carlo Longino, Wed Apr 28 17:15:00 GMT 2004
Several mobile companies reported results today: Siemens, KDDI, NEC and Matushita reported generally positive numbers, while TeliaSonera's sales continue to shrink.
Siemens' fiscal second-quarter profits doubled thanks to the sale of part of its stake in chipmaker Infineon, as well as strong demand for its telecom equipment.
Though Siemens doubled its income, sales fell short of expectations. Its mobile networks business increased profits 72% to EUR 76 million on a 9 percent increase in sales to 1.163 billion euros. The average selling price of its handsets held steady compared to the previous quarter, and volume increased 60 percent from a year ago to 12.8 million units, though that's off from 15.2 million in the fiscal first quarter. Sales were up 26 percent to EUR 1.243 billion, driving a profit of EUR 13 million.
As companies like Siemens, Samsung and Motorola steal back share, Nokia said today it was trimming phone prices by up to 20 percent, its second cut this year coming earlier and bigger than expected.
KDDI, Japan's number-two telecom operator, more than doubled its yearly net profit thanks to a 21 percent increase it its number of mobile subscribers, though costs of marketing -- which have pushed it to topping DoCoMo in subscriber adds -- drove its mobile unit to a 6.4 billion yen (about $58.5 million) loss, compared to a 6 billion yen profit a year earlier. ARPU fell slightly to 7,400 yen (about $71), with data making up 21 percent of that.
Also in Japan, NEC and Matsushita both returned to the black, thanks in part to strong demand for their mobile phones.
The biggest Nordic carrier, TeliaSonera, reported a drop in revenues for the fourth consecutive quarter, as it cuts prices to gain market share.