IN THE PAPERS
In The Papers 26 October
26-10-2010
by Sylvia Leatham
Arm profits soar on smartphone boom | UK's O2 launches low-cost call service
The Irish Examiner reports that Kildare company Swish is broadcasting customers' family events live on the internet. Passwords are sent to cyber-guests, who can log on to a website to watch a wedding, baptism or other event.
The Financial Times reports that the rapid growth of the smartphone has helped increase profits at chip designer Arm Holdings. For the three months ending in September, pre-tax profit jumped 155 percent to STG19.6 million, on revenues that rose 34 percent to STG100.4 million. Licence revenues grew in the period by 33 percent to USD53 million, or one-third of group turnover. Royalty sales grew 31 percent to USD83 million, or just over half of group turnover. Arm designs are used in the Apple iPhone and in 90 percent of mobile phones as well as in digital cameras, washing machines and televisions.
The paper also says that Tudou, one of China's leading video websites, is preparing an initial public offering with hopes of raising at least USD100 million. The company said it expected to complete the IPO on the Nasdaq exchange within the next six months -- which would make it the first Chinese internet video site to go public. Youku, the company's main competitor, previously indicated that it aims to go public but has declined to comment on timing and size of a potential IPO.
The same paper says that Telefonica is going head-to-head with Skype in the international calling market through the Spanish telecoms group's purchase of Jajah, a Silicon Valley-based internet phone company. O2, Telefonica's UK mobile phone business, will this week launch a low-cost international calls service for its customers. The service has been developed by Jajah, which Telefonica bought for USD207 million in January.
According to the Wall Street Journal, several online travel companies are opposing Google's proposed USD700 million purchase of ITA Software, the leading provider of flight data. Expedia, Kayak.com, Sabre Holdings and Farelogix are forming a coalition called FairSearch.org to persuade the Justice Department to block Google's latest deal, saying it would give the search giant too much sway over the travel sector. The companies are also launching a lobbying blitz on Capitol Hill, making the case to members of Congress that the deal would allow Google to dominate the online air travel market by giving it control over the software that powers many of its rivals in the travel search business.
The paper also notes that Russian internet firm Mail.ru Group, which owns a stake in Facebook, will push for a higher-than-expected valuation of up to USD5.7 billion in a London initial public offering. Mail.ru, which includes largely Russian e-mail, social-networking and gaming sites, will sell 3.03 million new shares and 28.59 million existing shares in the form of global depositary receipts at between USD23.70 and USD27.70 per GDR, it said in a regulatory disclosure. Mail.ru Group was formerly known as Digital Sky Technologies.
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