Five things to watch in finance: AT&T, Vodafone, VMO2

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As several companies from around the world of telecoms share their Q2 results, here is a financial round-up with all the key points.

AT&T reports declining revenues, but records customer additions

AT&T reported revenues of US$29.6 billion compared to US$35.7 billion a year ago, representing a decrease of 17.1%.

This was despite more than 800,000 postpaid net additions which is its best second quarter number of additions for over a decade.

“We’re expanding our customer base at an accelerated pace across our twin engines of growth – 5G and fibre,” said John Stankey, AT&T CEO.

“We’re rapidly building out our best-in-class networks on the heels of record-level connectivity investment.

“We’ve already added nearly 2 million AT&T Fiber locations this year and just reached our target of covering 70 million people with mid-band 5G spectrum two quarters early, with expectations to now approach the 100 million mark by the end of the year.”

Solid growth in UK and Africa for Vodafone

Vodafone’s operations in the UK and Africa saw it report 2.7% growth on an organic basis to €11.28 billion in its latest financial results.

Regulatory changes in Germany hampered its growth in its biggest market as the operator lost tens of thousands of cable broadband and television customers.

Service revenue in the UK jumped by 6.5%, however, following the increase of its annual contracts and the addition of 18,000 more mobile users and 22,000 extra broadband subscribers.

Vodafone chief executive Nick Read said: “Whilst we are not immune to the current macroeconomic challenges, we're on track to deliver financial results for the year in line with our guidance.

“Our near-term focus on our operational and portfolio priorities remains unchanged.

“We've made good progress towards stabilising our commercial performance in Germany, and we continue to actively pursue opportunities with Vantage Towers and to strengthen our market positions in Europe.”

Telefonica raises forecast after solid profit

Telefonica raised its revenue and earnings outlook for the year after recording a net profit of €320 million for Q2, 2022.

Core earnings were at €3.15 billion, and its overall revenues stood at €10.04 billion.

Telefonica’s net profits fell by 96% and its core earnings for the quarter fell by 77% from 2021, but those results were boosted by M&A activity.

Its updated 2022 guidance is expected to be in the high-end of the “low single-digit growth” range for revenues and in the “mid-to-high-end” of the low single digit growth range.

Its reinforced growth profile is driven by high value customer growth, product and service digitalisation.

Airtel Africa posts double-digit revenue growth

Airtel Africa’s revenue grew by 13% to US$1.25 million in its latest Q2 results.

Revenue growth was posted across all four reporting segments. Total revenues for its mobile services and mobile money services grew in Nigeria by 18.3% and in East Africa by 14.1%.

Operating profit grew by 20.6% to US$425 million and its profit after tax grew by 25.3% to US$178 million.

“I am pleased to report that the Group has continued to post double-digit revenue growth, margin improvement and strong earnings growth,” said Segun Ogunsanya, CEO of Airtel Africa.

“I am also particularly pleased with our ongoing strengthening of the balance sheet which continued after the period ended, with early repayment of $450m of debt at Group level.”

Virgin Media O2 posts strong growth in first year  

Virgin Media O2 has reported growth, one year after the merger was completed.

The company reported revenues of £2.5 billion and delivered a net profit of £78 million.

It reported 8,000 fixed customers in Q2, 2022, bringing that number to 5.8 million. VMO2 added 16,000 broadband customers, while there were 13,000 additions in mobile contract customers.

The total number of retail mobile connections is now 33 million and its total mobile contract base is 16 million.

“In Q2, we’ve grown our fixed and mobile customer base once again, as fast and reliable connectivity remains a top priority for consumers and businesses,” said Lutz Schüler, CEO of Virgin Media O2.

“We’ve seen an improved revenue performance alongside our best quarterly profitability growth since we merged, putting us in solid shape to meet our full year guidance.

“The launch of our Virgin Media O2 sustainability strategy was also a major highlight in the quarter, and we will back up our bold commitments on carbon, circular economy and communities with real action.”