Feeds

MM02 issues upbeat(ish) trading update

But what will the writedowns be?

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

MM02, the mobile network operator formerly owned by BT,
has reported an improved performance in most regions, although it will be reviewing the carrying value of its assets. MMO2's lack of size may eventually result in it becoming a takeover target, and an improved performance should help it drive a harder bargain.

Wireless carrier MMO2 says it is on course to report full-year income at the EBITDA level at around GBP838 million ($1.3 billion), in line with the consensus of analysts' estimates and 93.5% up on last year's figure.

However, in a trading update on its performance in the year to March 31, it warned that it would be reviewing the carrying value of its assets, suggesting that the final figures will be marred by huge write-downs.

On its UK operations, MMO2 said it expects to report full-year service growth above the 10% target established at the beginning of the year, and expects to show steady progress towards achieving an EBITDA margin of 30%, which it expects to achieve in the next financial year.

In Germany, where the company has been struggling behind the two major players, it said that it achieved positive EBITDA for the first time and the momentum continued into the second half, with a growth in market share. Another problem area has been the Netherlands where it expects to be close to EBITDA break-even for the year after a better performance in the second half. The Irish operation is expected to show EBITDA growth in the second half.

Capital expenditure in the second half is expected to be higher than in the first, as MMO2 plans to increase its investment in the Airwave communication network and in UMTS projects in the UK and Germany.

Chief executive of MMO2 Peter Erskine said, "Looking ahead, we are confident that we can continue to deliver improved operational and financial performance, and to build the value of the group."

The former mobile arm of UK incumbent BT Group is expected to be an early victim of consolidation in the European cellular market as it lacks the size to be a major player. Any improvement in performance will enable it to drive a harder bargain in takeover negotiations.

© datamonitor logo

Datamonitor is offering Reg readers some of its technology research FOC. Check it out here.

5 things you didn’t know about cloud backup

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
Ancient pager tech SMS: It works, it's fab, but wow, get a load of that incoming SPAM
Networks' main issue: they don't know how it works, says expert
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.