Recently in Profits & Losses Category

LG Electronics (LG) announced their earning here's what they released regarding their mobile arm.

The Mobile Communications Company reported KRW 5.140 trillion (USD 3.981 billion) in sales, 25.8 percent higher than the previous year, and operating profit of KRW 545 billion (USD 422 million) with a margin of 10.6 percent.

Handset sales accounted for KRW 4.877 trillion (USD 3.778 billion), up 29.9 percent YoY, and operating profit reached KRW 538 billion (USD 417 million) for a margin of 11.0 percent. Shipments of handsets recorded an increase of 7.8 percent YoY and 32 percent QoQ to 29.82 million units thanks to strong demand in mid-tier models such as the full touchscreen Cookie phone, QWERTY keypad messaging phone LG-KS360, a multimedia powerhouse feature-rich Arena with new S-Class UI, enV3 with a QWERTY keypad for messaging, and enV Touch with a QWERTY keypad and touchscreen.

Profitability improved with a product mix centered on new model launches and solid growth from existing mid- to high-tier handsets. With the global economic downturn expected to continue, LG sees the global market declining over 6 percent YoY to around 280 million units in the third quarter but, as for LG, steady growth is expected with the introduction of high-end devices such as the fourth model in the LG Black Label Series, smartphone GM730, and the one-of-a-kind GD900 Crystal with transparent keypad.

T&T reported that revenues grew in in 2008, and it expects 2009 will be another year of overall revenue growth and solid progress Consolidated revenue growth was driven by 13.2 percent wireless growth.

"During the past year, we took major steps to improve AT&T's position for 2009 and beyond. The success of our iPhone 3G launch has driven wireless growth and helped redefine the wireless data space,"  Randall Stephenson, AT&T chairman and chief executive officer.

Much of the wireless success was fueled by 1.9 million new iPhone subscribers and  51.2 percent Wireless Data Revenue Growth.

Verizon has announced its 2008 fourth quarter results. Verizon Wireless' revenue increased 12.3% for the fourth quarter because subscribers increased their spending on text messaging and Internet services by 41% compared with the same period a year earlier.

There official release describes Wireless this way:

• 1.4 million organic (non-acquisition-related) net customer additions, almost all retail; 1.2 million total net customer additions, including a net customer loss under a previously announced exchange agreement related to the 3Q 2008 acquisition of Rural Cellular.
• 72.1 million total customers; 70.0 million retail customers, up 9.9 percent, not including customers added with the Jan. 9, 2009, acquisition of Alltel.
• 12.3 percent increase in total revenues; data revenues up 41.4 percent; ARPU growth for 11th consecutive quarter; strong 47.2 percent EBITDA margin on service revenues (non-GAAP)

Apple is still making profits.  In the fourth quarter of 2008 it sold 4.363 million iPhones. Quarterly iPhone units sold were 4,363,000, representing 88 percent unit growth over the year-ago quarter.

Apple's Q1 profits were $1.61 billion up from $1.58 billion.

"Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple history--surpassing $10 billion in quarterly revenue for the first time ever," said Steve Jobs, Apple's CEO.

"Our outstanding results generated over $3.6 billion in cash during the quarter," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second fiscal quarter of 2009, we expect revenue in the range of about $7.6 billion to $8 billion and we expect diluted earnings per share in the range of about $.90 to $1.00."

According to the Wall Street Journal, Motorola is getting ready to make some changes in its mobile division including:

• Cutting jobs
• Focusing on Android as the operating system for its showcase phones.

Motorola is still the top supplier of cell phones in the United States with its RAZR topping sales charts.

Although Verizon's landline business was down, it  earned $1.67 billion in its latest quarter, a 31% rise from last year. Verizon Wireless added 1.5 million cell phone customers to bring the total wireless customers to 70.8 million.The mobile division had 12.5 percent increase in total revenues, including a 42.5 percent in data revenues.

Q2 profits are stats were released for many of the cellular carriers.

T-Mobile USA subscriber growth was slow in Q2 this year. It added only 668,000 net new customers in the second quarter, making its total subscribers 31.5 million. In the first quart it added 981,000 new customers which is the lowest add figure the company has had since second-quarter 2006.

Analysis suspect that the low growth is due to the fact that competitors Verizon and AT&T have high speed 3G data networks and T-Mobile does not.

On the other hand, US Cellular is profiting from strong growth in data. During the second quarter, it had a 45 % increase in data revenues totaling of $123.7 million. Service revenues were increased 9% percent for a total of $987.4 million. 

While Metro PCS flat-rate is gaining cost conscious subscribers. It added 184,000 new subscribers in the quarter with a total 4.6 million subscribers. Service revenues reached $599 million, 25% better than second quarter 2007. Total revenues equaled $679 million, which is a 23% increase over the previous year. 

Verizon announced Q2 earnings which increased 12% with substantial data growth up 45.3% over last year. Revenues reached $1.88 Billion.

 Retail data customers in June totaled 49.6 million-boosting revenue by $2.6 billion. Other interesting facts about Verizon in Q2:

• 70 billion text messages were sent
• 1.4 billion picture/video messages were sent
• 36.5 million music and video downloads
• 60 percent of its customers have 3G broadband-capable devices
• Overall subscribers reached 68.7 million
  

AT&T's net profit is up 30% due to an increase in wireless data renvenue (up 52%) while the company added 1.3 million new wireless subscribers. 

 Meanwhile Verizon added 1.5 million new subscribers in Q2.

Nokia  released new 2008 Q2 data and its global market share for handsets is at 40 percent, up from 38 percent a year ago. Other data:

• Nokia net sales of EUR 13.2 billion, up 4% year on year and up 4% sequentially (up 11% and 7% at constant currency).
• Devices & Services net sales of EUR 9.1 billion, down 1% year on year and down 2% sequentially (up 6% and 1% at constant currency).
• Nokia Siemens Networks net sales of EUR 4.1 billion, up 18% year on year and up 20% sequentially (up 26% and 23% at constant currency).
• Services and software net sales of EUR 119 million, up 42% sequentially.
• Nokia operating cash flow of EUR 1.5 billion.
• Estimated industry mobile device volumes of 303 million units, up 15% year on year and up 3% sequentially.
• Nokia mobile device volumes of 122 million units, up 21% year on year and up 6% sequentially.
• Nokia mobile device ASP of EUR 74, down sequentially from EUR 79 (approximately 40% of the decline was caused by the impact of exchange rate movements).
  

Sprint's figures are in and wireless business showed 52.8 million total subscribers at the end of Q1, a loss of 1.06 million subscribers.

"As expected, our wireless business delivered weak financial results," Sprint CEO Dan Hesse said. "While the business will continue to face challenges in the short term, we are making progress in methodically attacking the sources of our performance issues."

AT&T announced that it delivered strong wireless growth in the first quarter, reflecting the company's high-quality network, innovative services, attractive handset selection, extensive sales reach and continued improvements in operations.

First-quarter 2008 results included:

• Accelerated Wireless Revenue Growth -Total wireless revenues increased 18.3 percent versus the year-earlier first quarter to $11.8 billion


• Wireless service revenues, which exclude handset and accessory sales, grew 17.1 percent to $10.6 billion.


• Revenue growth was driven by strong subscriber gains and continued improvement in ARPU (average monthly revenues per subscriber).


• AT&T has now posted seven consecutive quarters of year-over-year growth in wireless service ARPU, which was $50.18 in the first quarter, up 2.0 percent versus the year-earlier first quarter. Retail postpaid subscriber ARPU growth was even stronger, up approximately 5 percent.

It pays to be the CEO of a major telecommunications carrier. AP reports that  Ivan Seidenberg, CEO Verizon of received $20.3 million in compensation in 2007, up slightly from $20.2 million the year before, according to record filings.

Seidenberg’s bonus was $4.2 million, down $52,500 from 2006. His stock award was about the same as in 2006, about $13.1 million, and his salary remained $2.1 million. His compensation in 2007 included perks worth $825,312, including $149,023 in personal use of a company aircraft, and $431,395 in contributions to a deferred-savings plan.

We assume perks may have included any choice of handsets without a contract as well as unlimited voice and data, but when you make that much money we wonder if you even care…

Clearwire Corporationy reported financial and operating results for the fourth quarter and year ended December 31, 2007. Clearwire reported a 48% increase in revenue, as well as a $83.1 million loss, during the fourth quarter, making analysts suspect a deal with Sprint.

During Q4, 2007 Clearwire added 47,000 subscribers, bringing its total subscriber base to 394,000.

Virgin Mobile USA  selected preliminary subscriber information and financial guidance for the fourth quarter and full year 2007. 

In the fourth quarter 2007, the Company expects to report net customer additions of approximately 210,000, bringing the total number of net additions for 2007 to approximately 512,000. Customer additions during the quarter reflect the company’s goal to attract and retain high value customers with positive return on investment. Having just passed its fifth anniversary in 2007, Virgin Mobile USA ended the year with 5,085,886 customers.

The Company expects to report churn of 5.1% for the fourth quarter of 2007, representing a decline of 50 bps from the same period in 2006. Churn for the full year 2007 is expected to be 4.9%, compared to 4.8% for the full year 2006. The Company is updating its guidance for Adjusted EBITDA to $95-$100 million for the full year 2007, representing minimum growth of 98% compared to the full year 2006. Based on preliminary data, the net loss for the full year 2007 is expected to be in the range of ($6)-($3) million.

T-Mobile USA increased mobile phone subscribers by nearly a million in the fourth quarter. T-Mobile USA announced it added 951,000 subscribers in October to December, giving it 28.7 million by the end of 2007 which is up 14.6 percent from a year ago.

T-Mobile USA CEO and president Robert Dotson said, “myFaves was a major contributor to this growth, with 5 million customers at year-end using the service to make unlimited calls to the people who matter most to them.”

Verizon Wireless profits and subscribers were up in fourth quarter 2007 while landlines decreased. Verizon had a 10.6 percent drop in consumer lines due to stiff competition. Verizon lost 875,000 phone lines in the quarter, including 476,000 primary home-phone lines, as customers switched to cable voice plans or began using wireless service exclusively.

Verizon Wireless wast  the most profitable domestic wireless company and the largest in terms of retail customers.  In the fourth quarter:

• Total customers increased to 65.7 million, up 11.3 percent year-over-year.

• 1.6 million of a total 2.0 million (retail and wholesale) net customer additions were retail post-paid customers.

• Verizon Wireless continued its industry-leading customer loyalty, with 1.20 percent total churn.  Churn among retail post-paid customers, 93 percent of all its customers, was under 1.0 percent for the quarter and the full year.

• Total revenues in the quarter were $11.4 billion, up 13.3 percent; service revenues were $9.9 billion, up 13.7 percent, driven by customer growth and demand for data services.  Full-year revenues were $43.9 billion, up 15.3 percent.

• ARPU (average monthly revenue per customer) levels increased year-over-year for the seventh consecutive quarter: retail ARPU of $51.49 was up 1.4 percent; retail data ARPU of $11.06 was up 36.0 percent.

• Wireless operating income margin was 26.2 percent.  EBITDA margin on service revenues (non-GAAP) was 43.6 percent.  (EBITDA is earnings before interest, taxes, depreciation and amortization.)

• Customers sent nearly 45 billion text messages and 927 million picture/video messages.

• Customers completed 30 million music and video downloads. 

• Verizon Wireless continued to extend the reach of its nationwide high-speed wireless broadband network, powered by EV-DO Revision A (Rev. A) technology, making it available to more than 240 million Americans by year-end.  More than half of the company’s retail customers — 35 million — had broadband-capable devices by year-end.

Nokia had a very good year also reporting:

• 34% increase in revenue.
• 27% jump in handset shipments during the fourth quarter of 2007.
• 40% market share selling 135.5 million handsets.
• 44% increase in its fourth-quarter profit.
• Operating profit for the quarter was 2.49 billion euros, up 64% from 1.52 billion euros in the same period last year

AT&T had a very good year end:

• It added nearly 2.7 million wireless subscribers ending 2007 with 70.1 million subscribers.
• ARPU was up 2 percent to $50.28.
• 16.3 percent increase in total wireless revenues
• Data revenues increased 57.5 percent over the same period in 2006.
• There were 2 million AT&T iPhone users, 40 percent of whom were new to AT&T.
• The company posted net income of $3.14 billion.

For full financial information continue reading.

Sprint announced initial plans to streamline its business with reductions across the company including approximately 4,000 internal positions and reduced use of outsourced services. The company also expects to eliminate more than 4,000 third-party distribution points and to close approximately 125, or 8 percent, of its company-owned retail locations.

Sprint Nextel currently expects these actions to reduce its internal and external labor costs by an annualized rate of $700-$800 million by the end of 2008.

For the fourth quarter Sprint Nextel reported a net gain of 500,000 subscribers through wholesale channels, growth of 256,000 Boost Unlimited users and net additions of 20,000 subscribers within affiliate channels. These gains were offset by net losses of 683,000 post-paid subscribers and 202,000 traditional pre-paid users.