3 Telecom Stocks Seeing Action: Telefonica’s Currency Problems, AT&T’s Campus Plans, Verizon’s Sports Deals
Telefonica S.A. (NYSE:TEF): Although Telefonica’s net profits dropped 21 percent to 1.09 billion euros ($1.46 billion), it still slightly beat out expectations, as revenue declined 10 percent to 14.1 billion euros. Currency fluctuations had a profound effect on Telefonica’s results, as sales in Latin America swelled 11 percent in local currencies but fell 6.8 percent when converted to euros. Revenue from fixed and mobile lines in its native Spain slid 8.8 percent, although operating margins increased substantially.
AT&T Inc. (NYSE:T): AT&T is providing the University of California, Berkeley with upgraded Wi-Fi and cellular network coverage as part of the company’s partnership with the Pac-12. According to the deal, AT&T will provide wireless Internet services to the campuses of colleges in the conference, including in football and basketball stadiums, while picking up several Pac-12 channels into its U-verse packages and becoming an official corporate sponsor of the conference. A Berkeley official said that the prospect of having wireless in sporting venues will enhance the experience for students engaged in social media.
Verizon Communications (NYSE:VZ): Verizon’s Precision Marketing Insights division is developing a new way for sports franchises to interact with companies. By tracking the locations of smartphones, they can see if people who attend sporting venues are then likely to go to outlets of companies that advertise in the venues. Though the method is by no means foolproof, it can give sports teams and companies a general idea of the effectiveness of their marketing campaigns. In the NBA, Verizon has already partnered with the Phoenix Suns, and talks are underway with the Portland Trailblazers, as well.