In The Papers 28 August

28-08-2008

by Sylvia Leatham

China Mobile boosts Q2 profit | Tote system links up with Betfair

The Irish Times reports that Warner Music Ireland's revenues declined by over 20 percent in 2007 to EUR10.5 million, according to accounts filed with the Companies Office. The Irish arm of the international music label recorded a pretax profit of EUR483,000, down from EUR1.2 million in 2006. This was despite a significant drop in the cost of sales from EUR8.1 million to EUR6.4 million. Warner Music is one of four major record labels pursuing an action against Eircom, claiming it is responsible for music being illegally downloaded using its network.

The Irish Independent notes that shareholders in Iona Technologies are expected to overwhelmingly approve its USD162 million takeover by US group Progress Software. It is understood that over 90 percent of Iona shareholders have already voted in favour of the move.

The paper also says that China Mobile, the world's biggest phone company by users, increased its second-quarter profit by 51 percent, beating analysts' expectations, after price cuts helped attract subscribers. Net income jumped to CNY30.8 billion (USD4.5 billion) from CNY20.3 billion a year earlier, above the average analyst estimate of CNY28.3 billion. China Mobile cut call charges to win business from fixed-line phone rivals and expanded its networks to meet demand from rural areas.

The Irish Examiner says that the State-owned gambling system at Irish race courses is from Thursday linking up with the world's biggest online betting exchange. The Tote system, traditionally only available at track-sides, will now be available to more than 2 million customers globally who are signed up to the Betfair site. The deal between Horse Racing Ireland and the internet betting company is being seen as a significant development in the industry.

The paper also says that Trade Minister John McGuinness is to lead a mission to Turkey in October that will include representatives from the telecoms, healthcare, energy, construction and aviation industries.

The Financial Times reports that mobile phone sales in emerging markets will be lower than many manufacturers had hoped this year, as rising inflation squeezes consumers. Research company Gartner said it had identified evidence of lower-than-expected purchases by consumers in emerging markets during the second quarter. Carolina Milanesi, Gartner research director for mobile devices, said many consumers in emerging markets were choosing not to upgrade their first handsets to more sophisticated devices because of the inflation-driven squeeze on household spending. Previously, Gartner was estimating between 10 and 15 percent growth in mobile sales in 2008 compared with 2007. It is now estimating growth of 11 percent. Read more on Garnter's mobile sales figures on ENN.

The paper also reports that Siemens, Europe's largest engineering group, has held talks with sovereign wealth funds from the Gulf, Russia and other regions in an attempt to expand its long-term investor base. Joe Kaeser, chief financial officer, said the German industrial conglomerate "would very much welcome an active involvement" by such funds. "We are very open to anyone who would want to join us as an investor," he said.

According to the Wall Street Journal, Sony has unveiled new flat-screen LCD televisions that are thinner and display sharper images than before as it gears up for the holiday season. The consumer electronics maker said it will release globally four high-end series of larger-screen TVs that are between 40 inches and 55 inches in the next couple of months. Sony has been losing money in televisions since it missed the industry's transition from traditional sets to flat-screen TVs years ago and is under pressure to turn the business profitable this year.

The paper also says that global spending on servers is showing signs of slowing down, according to research firm IDC. Worldwide server sales between April and June rose a relatively healthy 6.4 percent to USD13.9 billion, IDC said. But the growth came, in part, because manufacturers cut prices on popular product lines. With economic conditions showing few signs of improvement, price cuts "are a concern, as they may foreshadow a slowdown in market demand," said Matt Eastwood, an IDC group vice president. Servers are considered to be a bellwether for worldwide IT spending.

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