IN THE PAPERS
In The Papers 12 May
12-05-2010
by Sylvia Leatham
Ripplecom buys Ice Broadband assets | Deutsche Telekom swings to a profit
The Irish Times reports that Limerick broadband provider Ripplecom has acquired the networks of Ice Broadband, whose parent company was in liquidation. The deal, for an undisclosed sum, covers networks in Dublin, Louth, Kildare, Wicklow, Monaghan, Carlow, Kilkenny, Westmeath, Offaly, Laois, Tipperary, Meath and Limerick. Ripplecom, formed last year following the merger of Amocom and Callidus/Omnitel, plans to double its workforce to 28 by the end of the year.
The Wall Street Journal reports that Deutsche Telekom has swung to a first-quarter net profit despite slightly lower sales. Net profit for the three months ended 31 March came in at EUR767 million, compared with a net loss of EUR1.12 billion a year earlier, when the company's bottom line was weighed down by a EUR1.8 billion impairment charge on the goodwill of its UK operations. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) rose 1.6 percent to EUR4.89 billion. Sales declined 0.6 percent to EUR15.81 billion.
The paper also says that Facebook is catching up to rivals Yahoo and Microsoft in selling display ads. In the first quarter, Facebook pulled ahead of Yahoo for the first time and delivered more banner ads to its US users than any other web publisher, according to market research firm comScore. Overall, Facebook.com served 176.3 billion display ads over the first three months of 2010, or 16.2 percent of the total. Yahoo served 131.6 billion banner ads to Yahoo users, and Microsoft served 60.2 billion. However, by revenue, Facebook has a long way to go to catch up to its more established rivals. The site earned more than USD500 million in revenue in 2009, while Yahoo earned USD6.5 billion in revenue last year.
The same paper reports that chip giant Intel has predicted its business will grow sharply over the next few years, driven by an expansion into new markets as well as surprising strength in the PC business. Paul Otellini, Intel chief executive, told analysts that its earnings per share and revenue should grow at a average annual rate in the "low double digits" over the next few years -- about double the chipmaker's recent growth rate. Intel also projected a higher target for its gross profit margin. Chief Financial Officer Stacy Smith said he now expects Intel's gross margins can remain in a range of 55 percent to 65 percent. Last year, he had predicted the company could be expected to operate in a margin range of 50 percent to 60 percent.
According to the Financial Times, Nokia has made a sweeping management overhaul amid rising investor discontent. The handset giant will combine its smartphone and mobile services businesses into a single unit in search of a product to rival the iPhone, BlackBerry and devices based on Google's Android software. The reorganisation was accompanied by a wide-ranging management shake-up but analysts said it was striking that no new talent had been brought in. The new mobile solutions unit will be headed by Anssi Vanjoki, previously in charge of marketing. Meanwhile, Nokia's core mobile phone business will see Rick Simonson step down after less than seven months in charge of the unit.
The paper also says that tablet computers and e-readers could become as ubiquitous as digital music players but only if their prices fall dramatically, according to a new survey. A study of almost 13,000 internet users in 14 countries also concluded that consumers will pay for books, magazines and news on such devices but at lower prices than many publishers are hoping for. The Boston Consulting Group study found that 28 percent of those polled claimed that they intended to purchase a tablet or e-reader within one year, and 49 percent said they would buy one within three years. However, mass adoption would depend on the price of single-function devices such as the Kindle or Sony Reader falling to USD100-USD150 and the price of multipurpose devices such as the iPad coming down from USD499 to USD130-USD200, the survey found.
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