BT demerger hit by debt worries
All the papers report
on the latest troubles to hit British Telecom's demerger of its
mobile telecommunications arm, now called
MMO
2. The Financial Times reports
that the company's share price fell by 6% yesterday, following the
news of a possible £500m write-down on its September half-year
figures. Most reports attribute this to the "unexpected
liabilities" arising from the restructuring of Concert, the
company's loss-making joint venture with AT&T.
The Guardian reports that three senior executives at
MMO
2 are in line for a cash and
shares bonanza worth several million pounds when the company
demerges in November.
Terrorist attacks hit AOL Time Warner figures
Only the
Financial Times carries the news of AOL Time Warner's warning that
its revenue and cash flow would be seriously affected by the
terrorist attacks of 11 September. According to the Financial
Times' report, the attacks "exacerbated an already poor advertising
market". The company announced new expected growth figures of 5% to
7%, compared with the earlier target of 12%.
Napster close to settlement
The Financial Times, the
Independent and The Daily Telegraph report that Napster, the online
music service, has reached a preliminary settlement with American
songwriters and music publishers. The company will pay songwriters
$26m (£17.78m) in damages for past infringements, and about $10m
(£6.8m) in advance royalty payments. This brings Napster a step
closer to launching a legal online music service.
The Daily Telegraph notes media analysts' comments that the company
may have problems repairing its brand image and regaining
customers.
Boots to close Internet photo service
The Times and the
Independent report that Boots is to close its internet photographic
service, bootsphoto.com, exactly a year after its launch. The
venture attracted 250,000 subscribers but "failed to live up to
revenue expectations", according to the Times. The Independent
reports that the company will be relaunched early next year,
offering digital services such as editing and printing.
Best of the rest
The Financial Times reports
- India's booming software sector is likely to suffer a setback
as the prospect of outsourced work from US companies - its biggest
market - recedes in the wake of the terrorist attacks of 11
September.
- Online advertising revenue has fallen by nearly 8% in the first
half of 2001, according to a report from the Interactive
Advertising Bureau.