IN THE SPOTLIGHT
SES announced its financial results for Q1 2021. Trajectory in video improved from -8.0% YOY in FY 2020 to -4.6% YOY in Q1 2021. In addition, the company showed a solid networks performance (flat YOY) in the COVID environment with strong prospects for future growth. SES registered a 7% YOY reduction in recurring operating expenses, reflecting S&A gains, supporting higher YOY Adjusted EBITDA margin (61%). Solid cash flow generation and financial discipline were recorded, supporting lower YOY leverage ratio of 3.1 times at 31 March 2021. Adjusted net profit was up 42% YOY to €75 million.
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.
Network intelligence and automation company Kenmei Technologies announced that it has partnered with Vodafone Group on its “Digital Network Program”, with the aim of reducing operational costs, improving customer experience and increasing revenues.
Nokia and UN Women have together launched four pilot projects to bolster inclusion and diversity for equality. These pilots aim to address four different areas such as increasing the number of women employees, raising awareness of cervical cancer and uterine fibroids, promoting STEM (science, technology, engineering and mathematics) education, and empowering gender-based violence victims. After the successful execution of the pilots, the two organizations plan to roll these projects out in more countries across the Middle East and Africa region.
Nokia announced the launch of the Nokia Smart Node, a unique indoor mobile module solution delivering high-quality 4G and 5G indoor mobile coverage for residential and small-medium enterprise use.
In an exclusive interview with Samer Halawi, chief commercial officer, Intelsat, Telecom Review has gained insights about network convergence and the important role of satellites for modern connectivity. In addition, we are enlightened on the innovating steps the leading satellite communications provider has taken to serve the needs of telcos and transform into reality the needs of businesses and governments across numerous verticals.
In an exclusive interview with Telecom Review, Zeina Mokaddem, VP, regulatory and market access at Inmarsat, gave us her point of view about women empowerment and discussed the essence of working within the satellite communications industry.
With evolving technologies, new trends have emerged, shaping the mobile communications industry. Nokia has been a leader in that space with new technologies uplifting the overall ICT industry. In order to discuss Nokia’s mobile networks business and activities, Telecom Review spoke to Tommi Uitto, President of Mobile Networks, Nokia; and Bernard Najm, SVP, Mobile Networks, Nokia Middle East and Africa.