STRATEGY ANALYTICS: Western European Cellular Margins Continue Decline.Study Finds EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become Margins at 5 Year Low BOSTON -- Average Margins per User (AMPU AMPU Average Margin Per User AMPU Active Memory Processor Unit AMPU Automated Maneuver Planning Utility AMPU Average Minute Per User ) in Western Europe's cellular market fell by 10 percent in Q2 2006 to $14.60 per month, their steepest fall this decade, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. new research from Strategy Analytics. The study, "Quarterly Operator Performance Benchmarking, Q2 2006," from the Strategy Analytics Wireless Network Strategies service, reported a third consecutive quarter of AMPUs below the $15 mark, a level not seen since 2002. This quarterly report provides a health check for the wireless operator community, tracking the operational and financial performance of 113 individual operators, accounting for 75 percent of the world's cellular users. Although AMPUs fell faster in other regions in Q2 2006, such as in Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. , the Middle East and Africa, Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). was notable in recording its eighth consecutive quarter of AMPU decline, reversing a lengthy period of growth. "Competitive and regulatory pressures are really starting to be felt in Western Europe's cellular market," comments Phil Kendall, Director, Global Wireless Practice and author of the report. "While margins are still high at 42 percent, they will likely drop below the 40 percent mark within the next year." David Kerr David Kerr may refer to:
For a chart, "Western European Cellular Metric Evolution," see www.strategyanalytics.com/press/PR00335.htm About Strategy Analytics Strategy Analytics, Inc. - a global research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA, and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion