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Technology Stocks : Vodafone-Airtouch (NYSE: VOD) -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (2535)	2/17/2000 7:47:00 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Mannesmann net profit hit by acquisition costs By Steven Silber FRANKFURT (Reuters) - Mannesmann AG, currently being taken over by Vodafone AirTouch (LSE: VOD.L - news) , said its 1999 net profit fell 21 percent as goodwill costs from its own acquisition programme kicked in. The German telecoms and engineering group said net profit fell to around 500 million euros (308 million pounds) from 630 million euros (388 million pounds). Mannesmann said last year its 1999 bottom line would be cut by goodwill costs from big-ticket acquisitions including stake increases in Italy's second largest mobile phone company Omnitel and fixed-line operator Infostrada. A further acquisition, a $32 billion purchase of Vodafone's British rival Orange Plc, triggered Vodafone's record bid for the Duesseldorf-based company which resulted in a merger valued at around 180 billion euros. Vodafone said last week it had already gained acceptances from more than 67 percent of Mannesmann shareholders, who have until March 27 to tender their stock in a deal giving them a 49.5 percent stake in the merged group. Analysts said Thursday's net profit was roughly in line with expectations and that Mannesmann continued to look like the dynamic cellular player. "I think the D2 (mobile phone) sales figure is a little surprising, suggesting average revenues per user (ARPU) of 56 euros compared to my earlier forecast of 55," said Hermann Reith, an analyst at BHF Bank in Frankfurt. 10 MILLION MOBILE CUSTOMERS IN GERMANY D2, or Mannesmann Mobilfunk GmbH, had sales of 5.1 billion euros last year. Mannesmann said D2 currently had more than 10 million customers, gaining nearly 700,000 in December and around 500,000 in the first six weeks of this year. Overall telecoms sales in 1999 rose 93 percent to 9.1 billion euros. By 1020 GMT, Mannesmann shares were down 1.04 percent at 296.65 euros. The DAX index, from which Mannesmann was removed earlier this month, was down 0.1 percent. Mannesmann said 1999 group profit on ordinary activities rose to about 1.5 billion euros from 1.385 billion in 1998. Last month, when the firm factored in costs linked with its purchase of Orange, the figure came in at around 1.4 billion. Vodafone is demerging Orange because of regulatory concerns. Mannesmann also said proportionate telecoms earnings before interest, tax, depreciation and amortisation (EBITDA) rose 65 percent to around 2.1 billion euros. Last month Mannesmann reported a rise of about 70 percent to around 2.2 billion euros. It confirmed group EBITDA climbed 37 percent to around 4.3 billion euros and that group sales rose 22 percent to 23.2 billion euros. Mannesmann also reiterated that its engineering and automotive divisions contributed 1.1 billion euros to 1999 group EBITDA. Both Vodafone and Mannesmann have said they are keen to begin the spinoff of the non-telecoms activities quickly, Mannesmann by mid-year. The engineering and automotive divisions had combined 1999 sales of 12.3 billion euros, up three percent from 1998.