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Teleste Corporation
P.O.Box 323
FI-20101 Turku
Finland
Tel. +358 (0)2 260 5611
Verkkolaskutus
OVT-tunnus
003711022678
Operaattori
TietoEnator
Tilinumero TE003711022678
More information
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Future Outlook
Cautious approach to network investments is likely to continue among the
operator clientele of Video and Broadband Solutions. Nevertheless, we
believe the deliveries will continue at least on the level of 2009.
We
estimate the demand by the current clientele of Network Services to
continue steady. The strategic investments already carried out ensure that
our net sales will improve from last year.
Due to increased net
sales and adaptation of costs we estimate the operating profit for 2010 to
improve clearly over 2009.
Cautious approach to network investments is likely to continue among the
operator clientele of Video and Broadband Solutions. Nevertheless, we
believe the deliveries will continue at least on the level of 2009.
We
estimate the demand from the current clientele of Network Services to
continue steady. The realized acquisitions ensure that the net sales will
improve considerably from last year.
Due to increased net sales and
adaptation of costs we estimate the operating profit to improve clearly
over 2009.
Outlook for 2010 In Teleste´s estimation, the offering of services to
private households by the operator clientele of Broadband Cable Networks
will remain relatively stable even in an uncertain market situation. The
demand for network services provided by Broadband Cable Networks will
remain stable, but owing to the difficult situation in the financial
market the cable operators continue to be cautious with regard to their
network investments.
In our view, deliveries involving product
solutions offered by Broadband Cable Networks in 2010 will remain at least
on the same level with 2009. Net sales of the business area will grow
owing to the increased offering of services. However, the exceptionally
cold winter in Europe makes network installation works difficult in Q1.
Moreover, significant sporting events scheduled for the first half of 2010
may delay the upgrading of networks.
As for the markets of the
Video Networks business area, increased needs for security and more
effective traffic infrastructure allow for a cautious growth in net sales
in 2010.
Teleste is confident about keeping its strong market
position in the core markets and continues to implement its strategy in a
goal-directed manner while adapting its cost structure as required by the
economic situation. In an uncertain market situation, the recent strategic
investments made in the services business enable the net sales to grow
from the 2009 level. Bearing in mind increased net sales and the
adaptation of costs we estimate the operating profit to improve over 2009.
Owing
to the offering of services by the Group, changes will be made to the
segment reporting as from the beginning of 2010. The new segments include
Video and Broadband Solutions with the emphasis on products, and Network
Services focusing on the services business. The product and system
solutions consisting of Broadband Cable Networks and Video Networks will
be combined under the Video and Broadband Solutions business area, whereas
Network Services will include the network maintenance and planning
services.
The offering of services to private households by the operator clientele
of Broadband Cable Networks will remain relatively stable even in an
uncertain market situation. Demand for network services provided by the
business area is increasing in Germany. Due to the difficult situation in
the financial markets, the cable operators continue to proceed cautiously
with regard to their network investments. In our view, in the current
year, deliveries of product solutions provided by Broadband Cable Networks
will remain clearly under the 2008 level with the price competition
continuing further. Net sales of the business area is growing owing to the
increased offering of services.
Increased needs for security and
more effective traffic infrastructure maintain demand for the Video
Networks' solutions on the same level with the previous year.
Teleste
is confident about keeping its strong market position in the core markets
and continues to implement its strategy in a goal-directed manner while
adapting its cost structure as required by the economic situation. The
recent strategic investments in network services business performed by
Teleste will cushion the cyclic pattern in the company net sales under the
uncertain market conditions.
As a result of decreased demand for
network investments, the Group's action plan prepares for sales in
products and systems falling below the level of the previous year. Given
the increased offering of network services we estimate net sales to exceed
the last year's level, whereas operating profit will fall clearly from the
last year's level.
The offering of services to private households by the operator clientele
of Broadband Cable Networks will remain relatively stable even in an
uncertain market situation. Demand for network services provided by the
business area will remain strong in Germany. Due to the difficult
situation in the financial markets, the cable operators are proceeding
cautiously with regard to their network investments. In our view, in the
current year, deliveries of product solutions provided by Broadband
Cable Networks will remain under the 2008 level with the price
competition increasing further.
Increased needs for security and more effective traffic infrastructure
maintain demand for the Video Networks' solutions on the same level with
the last year.
Teleste is confident about keeping its strong market position in the
core markets and continues to implement its strategy in a goal-directed
manner while adapting its cost structure as required by the economic
situation. The recent strategic investments in the services business
performed by Teleste will cushion the cyclic pattern in the company net
sales under the uncertain market conditions.
Owing to decreased demand for network investments, Teleste's action plan
makes preparations for sales in product and systems falling below the
level of the previous year. As a result of our increased services
business, we estimate our net sales to end up at least on a par with
last year, whereas operating profit for the whole year will fall clearly
short of the previous year's level.
The offering of services to private households by the operator clientele
of Broadband Cable Networks will remain relatively stable even in an
uncertain market situation. Demand for the network services provided by
the business area is growing particularly in Germany. Due to the
difficult situation in the financial markets the cable operators are
proceeding cautiously with regard to their network investments. In our
view, in the current year deliveries of product solutions provided by
Broadband Cable Networks will remain under the 2008 level with the price
competition increasing further.
Increased needs for security and more effective traffic infrastructure
maintain demand for the Video Networks' solutions on the same level with
the previous year.
Teleste will keep its strong market position in the core markets and
continue to implement its strategy in a goal-directed manner while
adapting its cost structure as required by the economic situation. The
recent strategic investments in the services business performed by
Teleste will cushion the cyclic pattern in the company net sales under
the uncertain market conditions.
Due to delays in network investments the company action plan prepares
for net sales lower than that of the previous year and for a clear drop
in profitability in the first half of the year. In the second half of
the year, we expect the market to pick up to some degree based on the
investment plans of the operators. However, we estimate that
profitability for the whole year will fall clearly from the last year's
level.
Updated on July 21, 2010
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