3 Telecom Stocks Seeing Action: Vodafone’s Results, Softbank Plans Beyond Sprint, and T-Mobile Rivals Taken to Task
Vodafone Group (NASDAQ:VOD): First-quarter organic service revenue fell 3.5 percent to 10.155 billion pounds. Sales to northern and central Europe slid 3 percent due to “competitive intensity” as the U.K. dropped 4.5 percent and Germany fell 5.1 percent. Regionally, southern Europe declined 14.4 percent, with Italy down 17.6 and Spain down 10.6. However, strong growth in Africa, the Middle East, and Asia Pacific helped to offset weaker European performance. The company reiterated its full-year outlook and expects to complete the 7.7 billion euro acquisition of Kabel Deutschland by the end of the year.
Sprint Corp. (NYSE:S): Sprint’s new parent, Softbank, was apparently in the market for more than a wireless carrier: several months ago, the company pitched an $8.5 billion bid to Universal Music, the largest record label in the industry. However, despite the $2 billion premium that Softbank put on the price, Universal’s parent, Vivendi, rejected the offer. The offer to company’s board was not contingent on the outcome of Softbank’s prolonged bidding war with Dish Network for Sprint, the Financial Times reported.
T-Mobile US (NYSE:TMUS): In efforts to stay competitive, both AT&T (NYSE:T) and Verizon (NYSE:VZ) have launched responses to T-Mobile’s Jump plan, and the new offerings are more or less getting rather unanimous feedback: they are both bad ripoffs of T-Mobile’s original plan. Nilay Patel over at The Verge says that the plans are “designed to sucker customers into paying both the device subsidy built into Verizon’s already high monthly fees and the full retail price of their phones.”
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