NTL, the UK cable group, yesterday reported a dramatic fall in its net loss
in the third quarter and forecast it will become cash flow positive next year
after its E1.37billion (£823 million) equity issue.
The results were driven by the more than doubling of its broadband subscriber
base with the overall addition of 56,200 new customers. The growing broadband
uptake helped boost the average revenue NTL gets from each user to £41.43 per
month, compared with £38.89 last year.
NTL reported third-quarter sales of E894m against E830 million last time. Pre-tax
losses narrowed from E578 million to E207 million.
The group said it would the proceeds of the equity issue to fully repay a $500
million loan that carries a 19 per cent interest rate and a $675 million working
capital facility. NTL said paying the loans would save it $206 million annually.
Chief Executive Simon Duffy said the next stage in NTL's recovery would be refinancing
long-term debt of $4.6billion, which must be paid by September 2005. Back to top BT
profit up 26 per cent
BT Group has posted a 26 per cent increase in half-year profit to £1.03billion.
(E1.47 billion). But revenue slipped one per cent in the six months to the end
of September to £9.15 billion, (E13 billion) the result, says BT, of lower pricing
and regulatory action on fixed calls to mobile phones, and the forced shake-up
of directory inquiries.
Revenue from BT's 'new wave' businesses - broadband and business solutions -
rose 25 per cent in the second quarter, but that was more than offset by a 6
per cent fall in turnover in its traditional business. BT has an installed base
of 1.5m broadband subscribers, a three-fold increase on the year. Back to top Deutsche
Telekom lifts 2003 forecast
Deutsche Telekom has raised its profit forecast for 2003 after beating analysts
expectations with a 12 per cent rise in third-quarter core earnings.
The upbeat outlook comes as a further sign that the company, one of Europe's
most indebted, has begun to return to health after a 12-months of cost cuts,
debt reduction and asset disposals.
Adjusted EBITDA rose to E4.71 billion in the quarter to the end of September.
This is up from E4.2 billion last year and higher than analysts' forecasts of
E4.6billion. Net income also came in far ahead of expectations at E508 million.
This compares with the record E20.6billion loss the company reported in the
third quarter last year, when it took huge write-downs on a number of its assets,
including its VoiceStream US mobile phone unit. Total revenues were up 4.9 per
cent at E14.1billion.
T-Mobile, DT's wireless business, was the main driver of profit growth, with
adjusted ebitda up more than 35 per cent at E1.75billion. Back to top Advertising
boosts Sat1
ProSiebenSat.1, the German commercial broadcaster that was this year acquired
by a group of investors led by US media billionaire Haim Saban, reported improved
sales and a narrower loss for the third quarter as cost cuts and an improved
advertising environment took hold.
ProSiebenSat.1 yesterday reported a net loss of E6.9 million for what is traditionally
the weakest quarter for broadcasters, an improvement from the E49.3 million
loss a year earlier. Analysts forecast full-year earnings before interest, taxes,
depreciation and amortisation of E169 million - compared with E134 million in
2002. Back to top Swedish
DTT channels named
The Swedish Radio and Television Authority has made its recommendations to the
Government on which companies should be granted licences for terrestrial digital
television in Sweden. The Authority recommends the following companies:
1. Viasat Broadcasting UK Ltd. (TV3)
2. TV4 AB (film channel)
3. BBC Worldwide (BBC World)
4. The Walt Disney Company Ltd. (The Disney Channel Scandinavia)
5. TV6 Sverige AB (Viasat Sport)
6. Viasat Broadcasting UK Ltd. (ZTV)
7. Discovery Communications Europe (Discovery Science)
8. Turner Entertainment Networks International Ltd. (Cartoon Network/TCM, shared
channel) Back to top BSkyB
to face revolt over pay and bonuses?
Rumours are that local authority pension funds are lining up to join a shareholder
revolt at BSkyB's annual meeting today as the row about the satellite broadcaster's
corporate governance comes to a head.
While the appointment of James Murdoch, as the new chief executive of BSkyB
is expected to go largely unchallenged, institutions are still want to protest
about directors' pay and the board structure.
Approval of BSkyB's remuneration report is seen as the most likely forum for
a protest vote, along with the re-election of Lord St John of Fawsley, the senior
non-executive director who led the search for a chief executive to replace departing
Tony Ball.
The Association of British Insurers has flagged what it calls "very serious
corporate governance concerns" with BSkyB. A spokesman said: "We want to stay
in contact with the company following the AGM. There are some serious issues
to be resolved but it is down to our members as always how to vote."
Meanwhile, Standard Life Investments has said it was disappointed with the process
that put Murdoch in the chief executive's chair and said it would be "actively
engaging" with BSkyB in pursuit of the principles of good corporate governance. Back to top Broadcasters
need copyright for web age
New attempts are being made by international copyright experts to update broadcasters'
rights to cover cable and internet distribution, reports the FT.
Member countries of the World Intellectual Property Organisation last week asked
the body's secretariat to put together a draft text updating a 1961 treaty for
consideration next June. Wipo members will then decide whether to hold a diplomatic
conference to adopt a new pact, perhaps in 2005.
Wipo says a consensus exists on the need to upgrade broadcasters' rights to
take account of technological developments including cable and distribution
of programmes over the internet. A growing signal piracy problem and the hacking
of digital television subscriber codes have also increased pressure from broadcasters
for improved protection.
Digital transmission makes piracy easy because computers can download perfect
reproductions of programmes for onward transmission via the internet or for
copying on to DVDs.
Updated pacts extending rights for music performers and record companies to
the internet were adopted in 1996 - but broadcasters and audio-visual performers
continue to be covered by a 1961 treaty known as the Rome convention, which
the US has never been ratified.
50-year protection for broadcasts, the same term granted to copyright holders
and music performers. Back to top Sony
Pictures' AXN buys rights to rally Championship
Sony Pictures Television International announced today that its global action-adventure
entertainment network, AXN, has acquired the rights to broadcast the 2004 and
2005 FIA World Rally Championship from International Sportsworld Communicators
(ISC). The announcement was made today by Andy Kaplan, Senior Executive Vice
President, International Networks, SPTI, and Marie Jacobson, SPTI's Senior Vice
President, Programming and Production, International Networks.
"SPTI's branded networks continue to grow because we are in constant search
for unique global properties that our viewers find compelling," said Kaplan.
"WRC is the type of highly anticipated event which quenches our audience's thirst
for thrilling original programming. This is the type of event which fosters
audience loyalty and makes AXN so attractive to cable and satellite operators
worldwide who want to increase their distribution." Back to top VH-2
sets launch for December 16
VH-1's new spinoff channel aimed at "lads" will launch on December 16. Called
VH-2, the new station will be available to Sky Digital subscribers 24 hours
a day with a playlist featuring bands such Coldplay, The White Stripes and The
Red Hot Chilli Peppers. The target age of VH-2 will be roughly the same as VH-1
although the schedule will focus more on back-to-back videos than celebrity
documentaries. The channel is the ninth music station from the MTV Networks. Back to top Techsan
launches first LCD IDTV
Techsan, a leading manufacturer of satellite, terrestrial set-top boxes and
LCD monitors, has launched the World's first LCD Integrated Digital Television
(LCD iDTV).
The TechView TSL-15T, is a 15-inch XGA-resolution LCD TV with a digital tuner,
is the first of a proposed range of LCD iDTVs; 17-inch, 20-inch, 26-inch, 30-inch
and 36inch models will follow early next year.
The slim-line TSL-15Tstylishly incorporates a carry frame and can be powered
from a 12-volt power supply or with its universal mains adapter. Its integrated
digital tuner means that it can receive Freeview, without the need for a separate
receiver.
Techsan has combined its established expertise in digital reception and LCD
monitors to target the emerging LCD television market, in particular those models
designed for the new digital video broadcast standards that are being introduced
in Europe.
"We have built on our strength as a design and manufacturing company that provides
cutting edge technology solutions in the fields of digital set top boxes and
LCD monitors. We are excited by this opportunity to enter the digital television
market with the TSL-15T, which was designed and developed in the UK in record
time," said Simon Roh, Managing Director of Techsan UK. "It is remarkable to
think that this project only commenced at the beginning of the summer and we
will now be introducing the world's first LCD iDTV into the UK market in time
for Christmas." Back to top Thomson
gets E13.1m deal with ESPN
Thomson announced an order in excess of 13.1 million Euros from ESPN, the world's
leading sports programming network for broadcast equipment°including switchers,
cameras, routing systems, control systems, and modular products°in a new HD
production centre in Bristol, Conneticut.
The new 120,000 square-foot ESPN Digital Centre will supply programming for
the network's all-HD ESPN HD channel, which is now available to direct broadcast
satellite and cable TV systems throughout the United States. In March, ESPN
announced its plans to launch ESPN HD and feature a variety of 100 live, HD
telecasts in its first year. Once the centre is operational, ESPN will add a
variety of studio shows in 2004, providing an additional 3,700 hours of HD programming.
Back to top Nokia
:'Walkie Talkie' phone
Nokia has launched the first handset that also acts as a "walkie talkie," allowing
users to speak immediately at the push of a button.
Satellite broadcaster EchoStar Communications Corp posted a third-quarter profit
of $35.1 million, compared with a loss of $168 million, a year earlier. Results
fell below Wall St expectations and the company, which is the second-largest
satellite television service provider in the US, said that its subscriber growth
has slowed due to delays in delivering several new products. Revenue rose 19
per cent to $1.45 billion from $1.22 billion.
The year-ago loss was the result of a charge from rights granted to Vivendi
Universal when the French media company bought a 10 per cent stake in EchoStar.
The company's Dish Network, which competes with Hughes Electronics Corp.'s larger
DirecTV service, added 285,000 subscribers in the quarter, after increasing
its subscriber base by 320,000 a year earlier. Dish Network had approximately
9.085 million subscribers as of September 30, 2003.
EchoStar also announced that its board of directors has authorised the repurchase
of up to an aggregate of $1 billion of EchoStar's Class A Common Stock Back to top Brook
launches Nation277
The Optimistic Network is to launch Nation277 the first in a series of digital
television and radio channels on the Sky Digital platform. Nation277 will go
live on 25th November 2003, with Flipside TV.
TON has signed a unique multi-channel output deal with Digital Interactive Television
Group (DITG), Europe's low-cost digital interactive production and facilities
company and will broadcast from their studios.
David Brook, Channel 4's former Director of Strategy, and head if TON, comments,
"Nation277 will promote new ideas, new talent and a new business model for digital
television. We are building a creative, rather than corporate culture, with
a genuine emphasis on recapturing the excitement of live television. We will
offer low cost programming with terrestrial quality talent, with revenue coming
largely from telephone and transactional-based revenues. We aim to build a network
of channels designed to encourage and nurture new talent and we intend to do
it fast". Back to top Tele
5: in a good financial health
From David del Valle in Madrid
Spanish commercial TV channel, Tele 5, controlled by Italian group Mediaset
with a 52 per cent stake, is performing well. Until September, the channel made
a gross profit of E 102.6 million, 128 per cent up in comparison to the E45
million from the same period last year.
Total revenues grew by 8.5 per cent reaching E425.4 million against E392 million
the previous year. Ad revenues rose by 10.2 per cent to E419 million. Back to top Too
much regulation stops UK's broadband spread
The UK's E-commerce minister Stephen Timms has called on broadband internet
providers to hurry its introduction across the country. His plea coincided with
an industry demand for lighter regulation.
BT has submitted evidence to a Commons trade and industry select committee hearing
on broadband, asking for less red tape. "Too many broadband experts in BT are
spending too much time dealing with detailed regulatory inquiries instead of
making broadband available to more customers and creating and delivering innovative
new services," the company said in a memorandum.
Timms, in an interview with the Guardian, said he wanted broadband internet
access across the whole of the UK by the end of 2005. At present, about 80 per
cent of the country has access. Timms is not proposing new government funding
to reach this target.
A spokesman for BT said that the company was on course to make broadband available
to 90 per cent of the population by the end of 2004. Back to top '3'
in 3G handset race
A lack of suitable handsets looks set to scupper '3's plans to launch a pay-as-you-go
3G service by Christmas. Japanese vendor NEC has signed up to supply one million
handsets by the end of the year, but '3' apparently fears they will not reach
the shops until after Christmas.
The UK mobile operator had set itself a target of one million 3G customers by
the end of 2003. However, it will be hard-pressed to achieve that figure without
a pre-pay element to its sales plan. The Hutchison Whampoa-backed company has
so far garnered a subscriber base of around 200,000.
Pre-pay customers currently account for over 65 per cent of the UK market and
'3' is reportedly keen to introduce this method of paying for 3G services to
boost its sagging sales. According to reports, unless '3' receives at least
50,000 3G phones within the next two weeks, it will have to drop its hoped for
pre-Christmas, pre-pay push. Back to top TV
Today to sell a 25% stake
From Will Adams in Tokyo
The popularity of India's cable and satellite TV-delivered news sector is set
to be underlined later in November as the country's most popular Hindi-language
news broadcaster launches a share offering.
TV Today plans to sell a 25 per cent stake that the company it hopes will raise
a minimum of $22 million. The planned float comes after TV Today's English-language
rival, NDTV, raised $11 million in July by selling 15 per cent of the operation.
TV Today will use the money to strengthen its news-gathering and editorial operation
to fight News Corp's Star Group's Indo news channel, launched earlier this year.
The number of news-focused TV channels serving the pay TV market in India has
more than doubled to 19 over the past year. TV Today's Aaj Tak launched its
24-hour service in 2000 and now has a nearly 42 per cent viewer share for news
channels.
Aaj Tak also took nearly half of the $50 million spent on cable and satellite
TV news channels in 2002. But this figure is dwarfed in comparison to the overall
TV advertising spend in India which totalled $827 million according to industry
revenue trackers TAM. Back to top Cablevision
finds $15m in errors
US media group Cablevision unveiled accounting irregularities as it reported
a wider third-quarter loss because of weakness in its cable television business.
The company has lowered full-year growth targets and said it would restate its
accounts for the first three quarters of 2003 to reflect $15 million in improperly
overstated expenses from 2002 and before. This is the third time since June
that it has disclosed accounting irregularities.
While the amount of expenses at stake are insignificant compared to Cablevision's
total revenue, a widening investigation could reportedly delay completion of
a planned spinoff of the company's Rainbow television networks and a newly launched
satellite broadcasting service, VOOM. The cableco plans to begin operating as
two separate companies in January, but cannot complete the spinoff until the
US Securities and Exchange Commission ends its inquiry into the company's accounting
practices.
The company said in June that a five-month internal probe had found accounting
irregularities at its Rainbow Media cable unit stretching back more than three
years. Cablevision is probing the accounting at Rainbow, as well as its telecommunications,
Madison Square Garden and corporate segments.
Cablevision reported a third-quarter loss of $104.6-million, compared with a
loss of $79.5-million a year ago. Revenue increased 12 per cent to $975.8-million
from $872.4-million, but fell short of analyst expectations.
The company also lost 8,900 basic cable subscribers in the third quarter, compared
to a gain of 12,200 in the second quarter.
Meanwhile, trying to boost its customer growth, Cablevision announced that it
is now offering an internet phone service to all of its cable broadband customers.
The company's $35-a-month Optimum Voice dialling plan is available to one million
high-speed internet customers in the New York market. Cablevision launched Optimum
Voice on Long Island in September. Back to top Intelsat-Loral
deal to close by year end
Intelsat expects to close the Loral deal soon. The company said that the time
for appealing the bankruptcy court's order approving the company's pending purchase
of the North American satellite assets of Loral Space & Communications Corporation
has expired and that no appeal was made.
Upon consummation of the transaction, the Loral assets, including four satellites
in orbit and one satellite under construction that is expected to launch in
mid-2004, will give Intelsat full coverage of North America and 50-state coverage
of the United States.
One condition to the closing of the transaction is the receipt of U.S. Federal
Communications Commission approval of the transfer of Loral's FCC licenses to
Intelsat. Intelsat has requested expedited treatment from the FCC, and believes
that it may be able to close the transaction as early as yearend. Back to top BSkyB
to use Kingston connectivity for cricket coverage
BSkyB has selected Kingston inmedia satellite connectivity to follow the England
cricket squad on its tour of Bangladesh. Kingston will manage downlink and onpass
services for BSkyB, for its broadcasting of the cricket action on Sky Sports
2. Back to top NTL
'Broadband Plus' offerings unveiled
Premium content designed for ntl's 600Kbps and 1Mbps broadband Internet offerings
will shortly be available under the name Broadband Plus, according to Digital
Spy.
When the service does launch, current subscribers to ntl's 600Kbps and 1Mbps
services will apparently receive three months free access to the premium content
available. Thereafter, subscribers who wish to continue receiving the content
will have to pay £3.99 (E5.5) per month.
Content to be found on the service is mainly entertainment in nature - Tweenies
on Demand from BBCi, a 24/7 music video channel from MTV, known as MTV Live,
more music videos from the likes of VidZone and Video.tv, and Internet gaming
from game.net. Other services include videos from Encyclopedia Britannica, music
downloads from Download365, education resources from Espresso, news archive
footage from Newsplayer, game downloads from Freeloader, celebrity documentaries
from Screenplayer, and World Cup football events from Pure World Cup. Other
notable content on the service include sixteen Music Choice channels and Frost.tv,
a channel featuring Sir David Frost. Back to top Asia's
SkyLife reaches 1m subscribers mark
Korea Digital Satellite Broadcasting operator SkyLife has achieved a one million
subscribers milestone with NDS as its technology partner.
SkyLife launched Korea's only digital satellite TV service in March 2002. Since
then, it has grown quickly to gain market share of 6.1 per cent of television
households. SkyLife research shows that this growth rate far surpasses expansion
of satellite broadcasting in America, which reached only 3.4 per cent market
share after two years, and only 1.4 per cent market share in Japan in the same
timeframe.
According to a new study by IMS Research, the worldwide market for integrated
digital televisions (iDTVs) is forecast to exceed 26 million units shipped by
2008, up from an estimated 1.5 million in 2003.
Consumer take-up of iDTVs has had a slow start, partly due to high prices and
larger sizes of iDTVs, as well as minimum education at the retailer and customer
level. Currently, over half of total iDTV shipments have been to Japan, with
the US and the UK each accounting for less than 20 per cent of shipments. By
2008, this scenario is expected to change.
iDTVs are expected to gain popularity in many other countries worldwide following
successful launches of free-to-air DTT services. The US is expected to become
the dominant market for iDTVs, with demand driven by regulations such as the
US FCC Tuner Mandate and the recently-approved Plug-and-Play agreement. IMS
Research also anticipates that China will become a significant market for iDTVs.
Back
to topOptus
launches TV over mobile
From Will Adams in Tokyo
Australia's telecoms and cable TV provider Optus has launched a TV via mobile
phone offering as part of its strategy to increase revenue per user.
Optus, owned by Singapore Telecommunications, said its five million mobile phone
users could watch state funded ABC, SBS and CNN live through their handsets
if they owned one of five capable of running video streaming.
Although current legislation forbids Optus from charging for the content, the
company believes that the technology will be able to provide income in the future.
Optus runs Australia's third-largest pay TV platform with around 230,000 subscribers.
The company believes that the relationships it has with content providers will
help to drive the TV through the mobile phone offering forward. Marketing manager
Stuart Tucker said that it was part of the 'Optus Zoo' suite of mobile products
that also included video downloads of news bulletins from sources including
the Australian Associated Press and the Seven network. Back
to top Telefonica
breaks records in ADSL penetration
From David Del Valle in Madrid
Spanish telco Telefonica is increasingly strengthening its position in the ADSL
market. The company managed to sell a record 115,000 ADSL lines last month,
beating its previous best of 100,000 new lines per month.
Today, there are 1.5 million ADSL homes in Spain and a total of very nearly
two million broadband homes, including cable. Telefonica hopes to reach four
million ADSL clients in Spain and six million ADSL customers worldwide by 2006.
The telco group is currently offering telephony and Internet services through
ADSL and is finalising its TV offer, Imagenio. With an offer of around 22 TV
channels, Imagenio is being tested in the eastern city of Alicante with plans
to extend the trials to Madrid and Barcelona. Back
to top Russia's
Gazprom deny NTV sales talks
News Corp and Gazprom Media, owner of Russia's NTV television network, dismissed
a report in the New York Times saying that they were in talks regarding the
sale of NTV's satellite business.
"As of today Russia's largest media holding, Gazprom Media, is not conducting
any negotiations on the sale of shares in NTV-Plus," the holding company said
in a statement.
The statement quoted CEO Alexander Dybal as saying that Gazprom Media had met
News Corp management late last year and early this year to discuss the Russian
market. "I would call these consultations, rather than negotiations," Dybal
said. Back
to top T-Online
ups Q3 results
Pan-European ISP T-Online posted a substantial increase in third-quarter operating
profit to E61.2 million. Revenue also soared to E452.7 million from E377.4 million
in the same period last year.
The company, which is owned by Deutsche Telekom, has 12 million subscribers
÷ an increase of one million year-on-year - 27 per cent of those are using broadband
connections. Back
to top Duff
appointed ITV ads sales chief
Graham Duff, Granada's sales chief, has been chosen to head the advertising
sales operation at the combined ITV group. Earlier this year the government
approved the combination of Carlton and Granada's airtime sales arms as part
of their £4.5bn (E6.3 billion) merger, despite strong opposition from advertisers.
Duff's appointment comes ahead of the government's expected publication this
week of the concessions Granada and Carlton have agreed with the Office of Fair
Trading to ease concerns about their 52 per cent share of the UK television
advertising market. The Department of Trade and Industry will also announce
whether it has accepted the undertakings agreed by ITV and the OFT to alleviate
competition concerns.
As Managing Director-designate for airtime sales, Duff will handle next month's
crucial annual negotiations between ITV and advertisers over the broadcaster's
share of next year's advertising budgets. Back
to top London's
West End: Wi-Fi hotzone
Broadreach, the fast-growing provider of wireless broadband Internet access,
switched on the first UK's first Wi-Fi hotzone in and around the Piccadilly
Circus area of central London.
Free Wi-Fi Internet access is now available from the 'ReadytoSurf' hotzone all
the from Eros through the Trocadero centre to the Odeon cinema in Leicester
Square.
Magnus McEwen-King, CEO of Broadreach commented: "We want to remove the barriers
to Wi-Fi, and this hotzone shows that it is possible to bring wireless internet
access to a much wider area than ever before. Because Wi-Fi provides internet
access on the user's terms, we have seen support for, and use of, wireless hotspots
increase rapidly. However, we strongly believe that Wi-Fi internet access could
be simpler and easier."
Around two-thirds of the network is already operational, and the eastern side
should be finished next month. Wireless Web access will be freely available
in the area from Broadreach until the end of this year. Back
to top Galaxy's
pay-TV service delayed
From Shveta Malik in New Delhi
The much-awaited foray of Hong Kong's Galaxy Satellite Broadcasting, into the
pay-TV market has been delayed until January next year.
Galaxy, which is 51 per cent owned by Intelsat and 49 per cent by Television
Broadcasts (TVB) said: "Galaxy needs a bit more time to increase the number
of homes passed, after SARS (severe acute respiratory syndrome) caused delays
earlier in the year." an official has been quoted as saying.
Media reports added that Galaxy planned to have access to 300,000 homes by start-up,
rising to 600,000 after one year and a million after two years.
The other companies in the same business include Hong Kong Cable Television,
owned by i-Cable Communications, PCCW, Hong Kong Broadband Network (HKBN), a
subsidiary of the fixed-line operator City Telecom and smaller players such
as Yes Television Asia and TV Plus (HK) (formerly Pacific Digital Media (HK)
Corp). Back
to top
NTT
lays plan for new revenue
Nippon Telegraph & Telephone Corp (NTT) said strong results at its mobile-phone
unit pushed up revenue and profit at Japan's biggest telecommunications group
during the first half of the fiscal year. However, NTT President Norio Wada
warned that revenue was still falling in the group's phone business, as changes
in Japan's telecommunications market send carriers scrambling for new sources
of income.
NTT said it would set up a new broadband services company to boost earnings
as it forecast flat pre-tax profits in the year to March 2004.
The new company, NTT Resonant, is to become NTT Group's "principal engine in
the area of broadband businesses," according to Wada. The new company will be
entrusted with developing services such as interactive video communication,
e-learning and news portals, which are expected to make up for the decline in
voice revenues.
The popularity of low-cost IP phone services, has taken market share away from
NTT's traditional voice services, the company's core business. This has impacted
on the group's revenues at the fixed-line units - NTT East, NTT West and NTT
Communications ÷ which were down five per cent, four per cent and seven per
cent respectively in the first half of this year.
Group revenues grew by a modest 0.8 per cent to Y5,412.4 billion ($50 billion),
largely because of the success of NTT DoCoMo, of which 62 per cent belongs to
NTT. The mobile communications arm posted net profit of Y356.4 billion in the
half-year on operating revenues of Y2,535.9 billion.
Pre-tax profits were 9.5 per cent higher at Y842.7 billion, compared with Y769.3
billion in the same period last year, largely due to cost cutting. Net profits
increased sharply to Y383.6 billion from Y33.2 billion last year, when the company
took extraordinary charges related to write-downs on overseas investments.
NTT expects full-year revenue to rise 1 per cent to Y11,040 billion, while net
profits will surge a massive 149 per cent to Y582 billion. Back
to top Humax:
£200 DTT PVR
Humax has launched its first combined Digital TV Receiver with recordable Hard
Disk Drive (HDD) for the UK market. The single-tuner PVR-8000T is designed to
replace the VCR by allowing consumers to record digital Freeview television
channels without a video cassette while providing simultaneous access to analogue
TV programmes.
The major appeal of Humax's PVR-8000T lies in the one-off cost of around £200
making it the cheapest personal video recorder (PVR) in the UK, with no subscription
model, says the company. Back
to topItaly's
Fastweb chooses Kasenna for VOD
FastWeb, Italy's first and Europe's largest triple-play provider, has chosen
Kasenna MediaBase XMP software to power its VOD service expansion.
The European
commission is poised to rule that the Premier League's £1 billion (E1.4
billion) deal with BSkyB is unlawful. According to reports Mario Monti, the
European Competition Commissioner, is to issue a "statement of objections"
to the sale, which he believes is not in the interest of fans and is against
the anti-cartel provisions of the Treaty of Rome.
BSkyB won all
four packages of live media rights in August after the Premier League held
an auction. Monti is understood to be ready to rule that the 20-strong Premier
League should sell its media rights for the televising of live matches to
more than one broadcaster and not exclusively to Rupert Murdoch's company.
If a statement of objection is issued by the EC, it could lead to the Premier
League returning to the market to negotiate a new television deal with more
than one broadcaster.
The commission's
objection could also plunge many clubs into financial chaos, given that they
have already drawn up financial plans based on this summer's £1 billion
(E1.4 billion) deal between BSkyB and the Premier League for 138 games a season
over three years starting from 2004-5. Back
to top
Granada
and Carlton sign pact with OFT
ITV giants, Carlton
and Granada have signed an agreement with the Office of Fair Trading outlining
proposals to alleviate competition concerns over their £4.5 billion
(E6.3 billion) merger to create a single ITV group.
Advertisers and
rival broadcasters submitted their views on draft undertakings published last
week and will seek signs that the OFT has strengthened the role of the adjudicator
to be created by the government to police ITV's dealings with advertisers.
The adjudicator is one measure aimed at addressing concerns about the enlarged
group's 52 per cent share of the television advertising market.
Another concern
raised by media buyers, advertisers and rival broadcasters has been whether
ITV will be forced to maintain its 15 different regional points for selling
airtime. These allow advertisers to buy airtime in specific regions. ITV is
understood to favour maintaining the separate sales points because such advertising
represents 10 per cent of ITV's total revenues.
The undertakings
have now been passed to the Department of Trade and Industry for consideration.
An announcement is expected next week.
While ITV Plc
gets its final approval, ousted Chairman-designate Michael Green is said to
have an ace up his sleeve, which could win him back control of the network.
According to The Observer, Green has been holding talks with US billionaire
Haim Saban, over an assault on the company once Carlton and Granada's merger
is finally completed.
Green, who is
Carlton Chairman, was publicly ousted by shareholders as the ITV chairman-elect
last month. Back
to top
Episode
11: Murdoch Jr to get less money than Ball
James Murdoch,
BSkyB's new CEO, is to receive a remuneration package significantly below
the £2.46 million (E 3.44 million) received by Tony Ball, the outgoing
CEO, according to the FT.
The 30-year-old
son of Rupert Murdoch, BSkyB Chairman, has yet to finalise terms with the
pay-TV group's remuneration committee. But people close to the situation reportedly
said the new CEO would receive a smaller package than the £762,134 (E1,066,987)
basic salary and £1.5 million (E2.1 million) bonus enjoyed by Ball in
the year ending June 30.
Last week, Murdoch
Jr, trying to demonstrate to shareholders his independence as BSkyB's CEO,
stepped down as a Director of News Corp. The move has reportedly angered Murdoch
Snr, who appointed him to the board in 2000.
Rupert Murdoch
has reportedly sent a memo to other directors saying: "James informed
me that he thought it appropriate to step down as a director of News Corp.
I do not agree with [his] decision but have reluctantly agreed to go along
with it."
James has also
resigned to his position at the helm of News Corporation's Star TV and insider
Michelle Guthrie has been appointed as the new CEO.
Lord St John
of Fawsley, BSkyB's senior independent Director whose head is on the block
over
Murdoch's appointment as CEO, defended his role in the selection process.
Rejecting charges that he wasn't truly independent, he insisted: "I have
done my job well and I have worked very hard in my capacity." Back
to top
Hutchison
to buy KPN's stake
Hutchison Whampoa
and KPN Mobile have resolved their disputes regarding Hutchison 3G UK. KPN
will sell its entire 15 per cent shareholding in H3G UK to HWL for a total
cash consideration of £90 million. The price was arrived at against
the background of the dispute and court proceedings between HWL and KPN and
does not involve any actual valuation of H3G UK.
Hutchison and
the Dutch telecom group have been entangled for months in a dispute over who
should fund mounting losses at the third generation mobile phone venture.
KPN refused to stump up £150 million (E210 million) as its portion of
a £1 billion (E1.4 billion) loan to '3' at the start of this year.
The Hong Kong
conglomerate, run by Li Ka-shing, has paid £60 million (E84 million)
to KPN and the remaining balance will be paid in three equal installments
of £10 million (E14 million) in 2005, 2006 and 2007.
Meanwhile, KPN
reported a rise in third-quarter profits to September 30. As a result of this
the company restored dividend payments - suspended since 2000 - and lifted
some of its full-year forecasts. KPN reported net profits rising to E172 million
compared with E38 million the year before, while revenues increased 1.8 per
cent to E3.1 billion. Back
to top
Vodafone orders 3G phones from Japan
Vodafone has
reportedly placed orders for millions of next generation mobile phones for
its 3G services with Japanese firms.
This is a blow
to market leader Nokia but Vodafone as says that Finnish maker did not yet
have handheld devices with all the functions Vodafone wanted. Vodafone, which
already sources a lot of the handsets for its Live! service from Japan's Sharp
Corp, is planning to roll out its 3G services next year. Back
to top
HKBN
to invest $70m in CDMA network
From Shveta Malik in New Delhi
Hong Kong Broadband Network (HKBN), the wholly-owned fixed-line arm of City
Telecom, has indicated it is ready to spend $70 million to work on an advanced
high-data-speed code division multiple access network, filling up a gap in Hong
Kong's communications structure and build a CDMA-based third generation (3G)
network.
According to media reports, Chariman Ricky Wong said the government should take
back two little-used 800 megahertz mobile licences - one held by Hutchison Telecom
for its CDMAOne mobile voice service, and one by CSL for its TDMA (time division
multiple access) service - and auction them off. The development follows the
wrangling among operators over the future of second-generation licences, which
expire in 2005-06.
The Office of the Telecommunications Authority (Ofta) has already proposed that
the two 800 MHz licences be withdrawn to allow more efficient usage of spectrum
resources. In the industry, operators including HKBN and PCCW, have asked for
these to be put up for bidding.
On the other hand, Hutchison and CSL have opposed any such move. Hutchison plans
to launch its 3G service this year while SmarTone, Sunday Communications and
CSL, have said they would launch theirs between 2004 and 2005.
HKBN has initiated a feasibility study of a CMDA2000 1x network. Both WCMDA
and CDMA2000 can offer high speed data and multimedia services such as video
phones, video and music-on-demand, live TV broadcasts, video clip downloads
and others.
According to Wong, HKBN, which has a 10-gigabyte fibre network reaching 4,000
buildings, was well-positioned to offer CDMA2000 because back-up from its fixed
line network would allow it to lower costs. "We emphasise that 3G is all
about cheap mobile data and multimedia visual services," Wong said. Back
to top
China
develops the first 3G TD-SCDMA mobile
China has developed
the world's first 3G mobile phone based on the Time Division Synchronous Code
Division Multiple Access (TD-SCDMA) technology and could be commercially available
by 2005.
TD-SCDMA is a
Chinese home-grown standard that has heavy backing from the Chinese government.
It was co-developed by Chinese telecommunications giant Datang and German
equipment vendor Siemens.
The handset is
being tested on an experimental network in Jiangbei District, Chongqing, southwest
China, established by Datang and Siemens. Back
to top
France Telecom has told the government that it definitely plans to pull out
of the cable business. According to a report in the Les Echos newspaper, Thierry
Breton, FT CEO, told the Finance Ministry that he intends to divest the wholly-owned
France Telecom Cable unit.
He also told the ministry he is planning to sell the 27 per cent stake France
Telecom holds in Noos, the loss-making cable company controlled by Suez, as
well as its 70 per cent share of NC Numericable.
Suez, which owns 50.1 per cent of Noos may join up with France Telecom to find
a joint solution for their cable operations. The French telco, which is struggling
to reduce its heavy debt burden, has already divested a number of its non-core
media assets, including broadcaster TDF and Casema, the Dutch cable company.
France Telecom Cable was set up in 1993 when France Telecom took over the running
of a number of cable networks from Generale des Eaux, now known as Vivendi Universal.
It serves over 840,000 households, offering both internet and TV services. Back to top Brussels
to Block Canal + Benelux sale?
The sale of pay TV operator Canal Plus Benelux to three consortia led by local
cable operators, appears to be in trouble over competition concerns. The transaction
is currently before the European Commission for review.
According to sources, it is feared that the sale of Canal Plus's Flemish assets
to Telenet, and the sale of the company's Dutch assets to a group that includes
rival pay TV programmer Cinenova, will lead to an unacceptable level of ownership
concentration in the industry.
"In Flanders, the largest cable operator would have the monopoly on premium
movie and sports programming," according to a person familiar with the matter.
"And in the Netherlands, the Hollywood studios would control the only pay movie
channel in the market. It's unlikely that the regulators will allow that to
happen."
Cinenova is owned by the Walt Disney Television Company and by Sony Entertainment
Television. Back to top Tiscali
and Zoom join forces to provide DSL in Spain
From David del Valle in Madrid
US company Zoom Technologies and the European Internet company Tiscali have
joined forces to launch the 'Tiscali Prueba' and Zoom ADSL modems in the Spanish
Market. 'Tiscali Prueba' claims to be an easy new way for consumers to try broadband
service with minimal financial commitment.
Customers purchasing a Zoom modem at a retail store for E54.95 can use the Tiscali
ADSL service for six months without paying the normal monthly charge. Instead,
users will pay only for the service that they use at E0.05 per minute, and they
will never be billed more than E39.95 per month. This allows new users to try
the Tiscali service and compare the various Tiscali service offerings without
making a financial commitment or worrying about cancellation fees. The entire
investment is limited to the cost of the modem.
Tiscali expects to begin a major TV and newspaper campaign to promote the new
service in November. Several large retailers in Spain have already agreed to
stock the Zoom products featuring the Tiscali promotional offer. Back to top Korean
government to invest $644 m on DTV
From Shveta Malik in New Delhi
With the objective of to gaining more than 30 per cent of the global DTV broadcast
market, the Korean government has committed to construction of a nationwide
digital broadcast network with three major terrestrial broadcasters by 2005;
launching data broadcast in 2004, and digital multimedia broadcast (DMB) in
2005; and the start of t-government services in 2007.
To accomplish its objectives, the ministry will invest $644 million as a matching
fund raised from the public and private sector. The funds would be allocated
for building infrastructure, developing new service technologies and future
DTV technologies.
The government authorities selected 16 technologies to be developed including:
DTTV transmission technology, next-generation GHz cable transmission systems,
and integrated terminals for terrestrial and satellite digital multimedia broadcast.
Back to top Episode
10: BSkyB shareholders want more control
Members of the Association of British Insurers, which represents shareholders
controlling about 20 per cent of BSkyB shares, met with Allan Leighton and Gail
Rebuck, BSkyB non-executive Directors, to express concerns over the selection
process behind James Murdoch's appointment.
The ABI is reportedly planning to raise the company's board composition and
corporate governance compliance with Lord Rothschild, who is due to become independent
deputy chairman later this month.
The association questioned BSkyB's non-executives about the duration of the
selection process for a new CEO and they want to know what guidelines were used.
Major investors in BSkyB are also said to be demanding that the pay packet of
new the CEO and his father, BSkyB's Chairman Rupert Murdoch, should be closely
aligned to clear financial targets for the pay-TV company. Moreover they would
like to solve long-running issues with BSkyB's remuneration policy. They have
long argued the company does not provide enough information about how executives'
pay is defined, the Guardian newspaper reported. Back to top Vivendi
sales drop 59%
Vivendi Universal reported a 59 per cent fall in third quarter sales plummeted
mainly as a result of disposals, although there was weakness in its media business.
The French media and telecommunications company reported sales of E5.90 billion
for the quarter to the end of September, down from E14.55 billion in the same
period last year. Last year's figures included revenues from Veolia Environment,
its water and environment business, and from its publishing unit, both of which
have since been sold in an effort to pay down its huge debt-load.
Sales at Vivendi's telecoms operations - which include fixed-line operator SFR
and Cegetel, the second largest mobile phone business in France - rose slightly
to E1.94 billion from E1.8 billion last time, but sales at the company's media
operations dipped. Revenues at Universal Music, were down 16 per cent at E1.12
billion.
The company's entertainment unit, which is being sold to NBC for E8.3 billion,
saw revenues increase one per cent to E1.3 billion in the three-month period.
However, revenues at Canal Plus, France's largest pay-TV operator, dropped to
E969 million from E1.16 billion last year.
Vivendi Universal's games unit, which it tried to sell earlier this year, saw
the biggest drop, with revenues down 54 per cent at E77 million. These figures
now made a sale look even less likely.
Despite the fall in sales, Vivendi reiterated guidance for 2003, saying it expected
strong growth in operating profits, growth in cash flow from operations, and
a return to profit excluding one-off items and goodwill.
Following the substantial disposals it has made, Vivendi said it expected to
bring net debt to below E13 billion by the end of the year, and to below E5
billion by the end of 2004. Back to top ITV
unite US operations
Carlton and Granada, the ITV giants that are awaiting the approval for their
proposed merger, have announced the formation of a new division in the US to
be called Granada America, which will combine Granada Entertainment USA, Granada
USA New York and Carlton America.
Granada Content CEO Simon Shaps, who is to head up ITV's new production division,
Granada Production, unveiled the plans at a press conference in Los Angeles.
"Our ambition is to expand," Shaps said. "We have two complementary businesses
in the United States, and we can now bring them together."
He said that through reality shows, TV movies and dramas, ITV would aim to build
on combined revenues of around E98 million at the three existing US companies.
Back to top BigBand
bags German deployment
From Colin Mann in London
Third-ranking German cable MSO Kabel Baden-Wârttemberg (KBW) is to use BigBand
Networks Broadband Multimedia-Service Router (BMR) at the core of its digital
video services deployment. The BMR solution will allow increased digital broadcast
programming for Kabel Baden-Wârttemberg's 2.2 million subscribers, as well as
maximising service reliability and realising the cost saving and scalability
benefits of IP networking.
"We're delighted to be working with Germany's number three operator," commented
Sam Kershaw, Director of European Market Development at BigBand Networks EMEA.
"They've got ambitions, and we see the German market as moving ahead after a
period of uncertainty while ownership and funding issues were resolved."
Kershaw is in continuing dialogue with a range of cable operators throughout
Europe. "I think that in 2004 and 2005, we'll see some serious deployments.
This really puts us on the map, offering a new solution for operators' digital
video requirements. We're getting a great deal of interest from those seeking
to use an IP backbone and an integrated solution. It's a very attractive proposition
for them."
KBW will more easily be able to expand its network topology, scale up its systems
to allow for more content offerings and to introduce new services, such as video
on-demand. Uwe Baerman, Kabel Baden-Wârttemberg's CTO said that the solution
best fulfilled his company's video services objectives.
According to Kershaw, deploying the BMR solution puts in place "a great system
for new and additional revenue generating services. We can add functionality
and scalability. Securing deals such as the KBW deployment shows that we've
judged the market well. It's the beginning of a very positive story." Back to top Music
Choice offers new iTV app
Music Choice and NDS have partnered to deliver a new interactive TV application.
Powered by NDS's Value@TV technology, viewers will be offered ten compilation
channels including: Dance Floor Fillers, Ultimate Urban and Just Chillout.
Designed to mimic the process of 'choosing your favorite CD,' viewers can choose
their favorite compilation from a virtual stack of onscreen CD's. The navigation
process will take the viewer to their chosen compilation channel, each one illustrated
with an album cover style screen to reflect the CD. Back to top New
Skies solid Q3 performance
New Skies Satellites, the Netherlands-based satcomms company, reported revenues
for the quarter were $54.1 million and EBITDA was $30.1 million, both up 11
per cent from the third quarter in the previous year. Net income was $2.7 million,
down 23 per cent compared to $3.5 million in the same period in 2002.
New Skies CEO Dan Goldberg said: "I am pleased to report that the solid performance
New Skies achieved in the first half of this year continued through the third
quarter."
"Additionally, given that the bulk of the payments associated with our two newest
satellites - NSS-6 and NSS-7 - are behind us, we have moved into a strong free
cash flow position. In this regard, we generated $25.9 million of positive free
cash flow in the third quarter and $62.0 million for the first nine months of
this year, compared to negative free cash flow of $10.9 million and $93.6 million,
respectively, for the same periods last year. In addition, New Skies continues
to have a healthy balance sheet, and indeed was debt free at the end of last
quarter. As anticipated, increased depreciation expenses from our new satellites
resulted in lower net income." Back to top Brazilian
TV network comes to Europe
Record TV network, Brazil's second largest TV and entertainment network, will
now reach Hispanic communities across Europe using Kingston inmedia's Direct
to Home (DTH) services.
Kingston will downlink the channel from Hispasat 1C and then turn it around
onto Astra 2b for European distribution. Back
to top
