In The Spotlight
Ericsson has reached an agreement with Nokia for settling a damages claim of 80 million euros ($97 million). The settlement relates to events that were the subject of a 2019 resolution with the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC) of investigations into Ericsson’s violations of the U.S. Foreign Corrupt Practices Act (FCPA).
As communicated in 2019, the resolution with DOJ related to criminal charges of books and records and internal controls violations of the FCPA in five countries including in Djibouti and a guilty plea to one instance of bribery in Djibouti. The resolution with the SEC related to allegations of violations of the books and records and internal controls provision of the FCPA in six countries and of the bribery provision of the FCPA in three of these six countries.
The agreement with Nokia contemplates the payment by Ericsson of a total settlement amount of EUR 80 m (SEK 0.8 b equivalent). Ericsson stated that the amount reflects uncertainty, risk, expense, and potential distraction from business focus associated with a potentially lengthy and complex litigation.
According to the Swedish vendor, the settlement will have an impact of EUR 80 m on EBIT and EUR 26 m on cashflow in Q2 2021. The remainder of the settlement amount will be made in similar installments in 2022 and 2023 respectively, impacting cash-flow. The settlement amount will be recorded as Other Operating Expenses under Segment Emerging Business and Other.
Orange is accelerating its solar projects in the Middle East and Africa (MEA) to reduce its carbon footprint to zero by 2040.
Telecom Egypt announced its Q1 2021 results for the period ending 31 March 2021. Consolidated revenue came in at EGP 8.4bn, growing 20% YoY on higher data revenue (+37% YoY) constituting 66% of top line growth.
By harnessing the power of satellite connectivity to provide fast, affordable, and reliable internet access in rural and underserved communities in sub-saharan Africa, Eutelsat Communications is utilizing Facebook's Express Wi-Fi platform with Eutelsat Konnect to bridge the digital divide.
CSG, the trusted partner to simplify the complexity of business transformation in the digital age, reported its results for the quarter ended March 31, 2021.
Total revenue registered $253.1 million and total non-GAAP adjusted revenue was $236.7 million. GAAP operating income was $31.4 million, or 12.4% of total revenue, while non-GAAP operating income registered $40.2 million, or 17.0% of non-GAAP adjusted revenue.
“CSG got off to a very good start in Q1 with revenue and adjusted revenue up 3.1% and 4.1% year-over-year, respectively, representing our best quarterly organic revenue growth results since Q3 2019,” said Brian Shepherd, president and chief executive officer of CSG.
“We believe these solid first quarter results show that we are building a strong CSG, one that puts customer success before our own ambitions. As a result, we are pleased to reconfirm our 2021 financial targets. Looking ahead, we remain well positioned to lengthen and strengthen our relationships with existing customers, accelerate our growth and diversify our revenue base.”
Results of operations
Total revenue for the first quarter of 2021 was $253.1 million, a 3.1% increase when compared to revenue of $245.6 million for the first quarter of 2020, and a 2.8% decrease when compared to revenue of $260.5 million for the fourth quarter of 2020. The sequential quarterly decrease can be mainly attributed to the higher level of revenue CSG typically experiences in the fourth quarter of the year from strong software and professional services revenue. The year-over-year increase in revenue can be mainly attributed to the continued growth of CSG’s revenue management solutions along with a strong quarter of professional services revenue.
GAAP operating income for the first quarter of 2021 was $31.4 million, or 12.4% of total revenue, compared to $33.2 million, or 13.5% of total revenue, for the first quarter of 2020, and $23.7 million, or 9.1% of total revenue, for the fourth quarter of 2020. GAAP operating income for the first quarter of 2020 benefited from a mark-to-market reduction in a compensation liability that resulted from the unexpected and steep decline in the stock market in that quarter, and fourth quarter of 2020 was negatively impacted by executive transition costs of $11.2 million.
GAAP EPS for the first quarter of 2021 was $0.61, as compared to $0.66 for the first quarter of 2020, and $0.41 for the fourth quarter of 2020, with the fourth quarter of 2020 GAAP EPS primarily due to lower operating income, discussed above.
Non-GAAP adjusted revenue for the first quarter of 2021 was $236.7 million, a 4.1% increase when compared to non-GAAP adjusted revenue of $227.3 million for the first quarter of 2020, and a 2.7% decrease when compared to $243.2 million for the fourth quarter of 2020. The fluctuations in non-GAAP adjusted revenue between periods are primarily due to the factors discussed above.
Ethiopia is one of Africa’s thriving markets with a solid digital strategy that will place the country in a strategic position. H.E. Abiy Ahmed, Prime Minister of Ethiopia, has a clear vision that puts ICTs and telecommunications at the heart of economic growth and prosperity objectives.
GSMA recently published its State of the Industry Report on Mobile Money which highlights the latest insights on the state of the mobile industry worldwide. In an exclusive interview with Telecom Review Africa, Akinwale Goodluck, head of Sub-Saharan Africa, GSMA delved into the details of the report with a focus on Africa.
During the MWC Shanghai Exhibition, ZTE and GlobalData officially released the white paper “Precision 5G Transport-The Foundation of Future Mobile Network”. As 5G networks develop, it becomes obvious that the quantum leap in capabilities of radio network also brings significant shift in system-wide architectural requirements. In this context, transport network, connecting 5G radio to the core of the network, needs to evolve in several directions: provide significantly higher capacity and scalability, support varied deployment models, have sophisticated slicing capabilities, in addition to precise, varied, and robust timing and synchronization, and low and controllable latency characteristics, to the point of determinism.