Latest Finance & Strategy Insight – Page 126
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PremiumVodafone Q3 FY21–22: Read asserts “proactivity” on M&A
Management seeks to seize back agenda amid growing City pressure for urgency on assets sales. Minimal progress appears to have been made on Read’s long-term push for four-to-three consolidation. German operation unsurprisingly draws questions following embarrassing missteps.
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Venturing & InvestmentsRevealed: DT’s fibre linkup with ex-Deutsche Glasfaser bosses
Group investment arm DTCP takes large minority stake in startup Fiber Experts Deutschland. Venture sees DT link up with former Deutsche Glasfaser execs Uwe Nickl and Dr. Stephan Zimmermann. Ex-DT executive Wolfgang Kniese involved in venture’s management.
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Suppliers & SCMOutsourcer ISS confident on DT mega-deal recovery
Deutsche Telekom’s German facilities partner says it has worked through majority of deal restructuring programme instigated in 2020. Business continues to target breakeven by end of FY22.
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Financial & PerformanceDT’s FY21 report: events intervene but an empowered Höttges talks tough on towers
Another strong year of growth for Group, led by USA. Unfortunate clash with Ukraine invasion dulls shareholder reaction. Executives stress openness and flexibility when it comes to a big TowerCo deal, but want full recognition of DT assets’ worth. Muddiness on future of BT holding. Inflationary pressures said to ...
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M&AINWIT eyeing European towers for potential M&A
Vodafone and Telecom Italia TowerCo joint venture lays out framework for “financial flexibility”, enabling M&A when opportunities arise. CEO Giovanni Ferigo claims organic growth remains the focus, but admits interest in smaller European players. Capital allocated to enable inorganic options.
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Partnerships & AlliancesT-Mobile US wheels in Amdocs for data management
Amdocs CEO flags “multi-year” deal on DataONE, the vendor’s cloud-based data management system. Closer BSS integration following Sprint merger, and gaining actionable insights from customer behaviour, appear key goals. DataONE contract follows last year’s adoption of amdocsONE to provide “next-generation” comms and media services.
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Financial & PerformanceTelefónica’s FY21 comms decrypted: anticipating a new, asset-light dawn
Solid organic performance fuels management confidence in Telefónica’s ability to maintain growth and regain traditional swagger. New Spain and UK FibreCos to round off Group infrastructure monetisation programme. Near-term growth may still be dependent on inorganic activity in Brazil and JV success in UK.
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M&AVodafone explores sale of Indus Towers stake
Group plans to use some of the proceeds to take part in Vi fundraising exercise. Bharti Airtel could buy another 4.7% stake in Indus Towers. Indus security arrangements have been modified, but TowerCo still protected from Vi weakness. In Europe, Vodafone could lose Telecom Italia as partner in ...
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Strategy & ChangeDT prepared to scale back Russian hub amid crisis
DT has thousands of employees in Russia. CEO indicates the Group could shift staff and operations away from St. Petersburg software development function, in response to Ukrainian crisis. Tasks could be shifted to other digital hubs in India or eastern Europe. Crisis brings centre’s expansion plans to an ...
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M&ATelefónica preps new vehicle for digital M&A in Brazil
Local operating business Vivo indicates it may channel deals through a new platform as it seeks to build out its digital services ecosystem. Move would extend Vivo’s control over M&A and provide an alternative route to Telefónica’s central Wayra and Tech divisions.
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B2BT-Mobile expands beyond US, goes transatlantic on IoT
DT and American NatCo pick a safe, greenfield side-line of cross-border IoT as first target for international B2B collaboration plan they flagged in 2021. Move comes with T-Mobile quietly beginning to look beyond USA for opportunities, raising strategic questions for DT and its own international B2B interests.
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Public AffairsTelco inflation playbook: raise prices, cut costs, embrace digitalisation
Tough times ahead for telco customers, employees, and suppliers, as inflation drives price hikes, capex and opex control, and ongoing workforce reductions. Inflation-linked contracts to boost service revenue and outpace rising costs. Digital transformation efforts seen as key to cost savings.
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MarketingBT recalibrates ad strategy with in-house reshuffle
Operator joining up ad capabilities across Consumer, Enterprise, and Global. Establishes new Media Centre of Excellence to share learnings.
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M&ABT Italia offloads SAP services subsidiary
BT Global continues ‘global not national’ streamlining programme with the sale of Italian IT outsourcing outfit ERPTech. €4m+ deal leaves Italia lightweight but focused.
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Venturing & InvestmentsTelefónica partner Asterion fills infra fund number two
Investment manager with close links to Telefónica completes set up of a new €1.8bn pot. Five European markets in sights for energy and telecoms opportunities. Madrid-based business has various ex-Telefónica staffers on team and a history of deal-making with Group.
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Venturing & InvestmentsBT opens venturing wallet for on-demand talent pool startup
Startup acceleration ambition kickstarted with minority stake in Distributed. New acquisition to provide BT access to on-demand software engineering teams to support development projects, with connected healthcare solutions first up. BT’s Harmeen Mehta hopes such partnerships will alleviate skills shortage pressures and drive her digitalisation agenda.
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Public AffairsSwiss court orders DT to seize $12.7m in assets
Ruling says funds due to Airport Authority of India. Convoluted case sees Deutsche Telekom caught in the crossfire as a result of minority stake in Devas Multimedia. Long-running legal disputes date back 17 years.
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Suppliers & SCMAssurant tools up for T-Mobile in store repair deal
Assurant recruits 2,000 technicians and managers to lead same-day repairs service at T-Mobile stores. Contract comes with substantial investment requirements, but upsides anticipated in the coming year. Sprint migration also completed.
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Partnerships & AlliancesVivo gets ball rolling on Ânima learning JV
Brazilian operator’s Board clears path to creation of new company focused on digital courses. Vivo confirms 50:50 split with partner Ânima Educação. Some bureaucratic hurdles still to overcome.
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Suppliers & SCMBT hives off logistics to ‘simplify’ supply chain
Expanded partnership with GXO Logistics sees warehousing and transport requirements handed over, along with 300 BT employees. Procurement chief Cyril Pourrat deems it a milestone in Group simplification programme. Unions typically concerned.