Verizon Q1 profit up on tax gains, loses phone customers

(Telecompaper) Verizon reported first-quarter earnings of USD 1.11 per share, up from 84 cents a year ago, helped by the US tax reform and new accounting standards for revenue recognition. Revenues rose 6.6 percent to USD 31.8 billion and were 3.2 percent higher on an organic basis. Wireless service revenues were still down 2.4 percent year-on-year, but Verizon said the result excluding the accounting impact was flat over the quarter and positive in March. …read more

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Private equity group to buy Mitel for USD 2 billion

(Telecompaper) Mitel has agreed to be acquired by Searchlight Capital Partners in an all-cash transaction worth about USD 2.0 billion, including Mitel’s net debt. Mitel’s shareholders will receive USD 11.15 per share in cash, a 24 percent premium over the 90-day weighted average price. When the transaction completes, Mitel will become a privately held company, a move expected to provide it with additional flexibility to accelerate its move-to-the-cloud strategy. …read more

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CityFibre accepts GBP 537.8 mln takeover offer from Antin consortium

(Telecompaper) UK wholesale operator CityFibre said it has accepted an acquisition that values the company at around GBP 537.8 million, or GBP 0.81 per share in cash. The offer was made by Bidco, a newly incorporated 50:50 consortium made up from Antin and WSIP, itself including West Street Global Infrastructure Partners and Broad Street Principal Investments UK. CityFibre said the deal represents a premium of almost 93 percent from the closing price of GBP 0.42 per share on 23 April, the last day before the bid announcement. …read more

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Telenor underlying revenues up 1% in Q1, margins improve after cost cutting

(Telecompaper) Telenor reported underlying service revenues up 1 percent in the first quarter, in line with its full-year outlook for 1-2 percent growth in traffic and subscription revenue. growth was led by Grameenphone in Bangladesh, as well as Malaysia’s Digi and the Scandinavian operations. Total reported revenues fell by 2 percent to NOK 27.1 billion due to negative currency effects. The adjusted EBITDA margin was up 4 percent points from a year ago to 41.7 percent, thanks to cost efficiency efforts. …read more

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EU launches in-depth probe of Apple’s Shazam acquisition

(Telecompaper) The European Union’s antitrust watchdog has announced the launch of an in-depth investigation into Apple’s proposed acquisition of song-identification app Shazam amid concerns the merger could reduce choice for users of music streaming services. In a statement, EC Commissioner Margrethe Vestager said: “our investigation aims to ensure that music fans will continue to enjoy attractive music streaming offers and won’t face less choice as a result of this proposed merger.” The EC added that the transaction announced in December and valued at EUR 400 million would combine two significant and well known players in the digital music industry that are active in complementary business areas. It has has 90 working days, until 04 September, to take a decision. …read more

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Alphabet revenues jump 26% to USD 31 bln in Q1, helped by new accounting rules, currency effects

(Telecompaper) Google parent company Alphabet said revenues for the first quarter jumped 26 percent from the year before to USD 31.15 billion, helped by currency fluctuations. On a constant currency basis, revenues went up 23 in the quarter. The net profit leaped to USD 9.40 billion from 5.42 billion, with diluted earnings per share rising to USD 13.33 from 7.73, helped by new accounting standards, which changes how companies report their equity investments. Without these changes, the net profit would have reached USD 7 billion and diluted EPS around USD 9.93. …read more

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