Telenor reports Rs 355 crore loss on Uninor blows
Norway-based telecom firm Telenor reported a net loss of Rs 390 million kroner (about Rs 355 crore) for the quarter ended March, after writing off Rs 3,560 crore in India, where it lost all the licences.
The firm, which has a 67% stake in its Indian joint venture Uninor, had to report loss despite a revenue growth of 4% compared with the year-ago period. The company's sales rose to 25.1 billion kroner (about 22,817 crore) during the first quarter of the year.
The company said its Indian arm contributed 2.3% of the 8% sequential organic revenue growth of the entire group. Uninor's sales rose to 922 crore from 500 crore in January-March 2011. However, Uninor's operating loss increased three-fold compared with the previous year.
"If it hadn't been for the current regulatory situation, Uninor would have been EBITDA break-even in the second quarter of 2013," said Jon Fredrik Baksaas, president and CEO of Telenor Group.
A company spokesman said, "Our main focus is to secure continued operations in India. If the proposed recommendations from Trai become policy, then the Government of India will be forcing Telenor Group to exit."
Although the global telecom major maintained its outlook for the year, it said its forecast excluded India operations due to high uncertainty.
Norway-based telecom firm Telenor reported a net loss of Rs 390 million kroner (about Rs 355 crore) for the quarter ended March, after writing off Rs 3,560 crore in India, where it lost all the licences.
The firm, which has a 67% stake in its Indian joint venture Uninor, had to report loss despite a revenue growth of 4% compared with the year-ago period. The company's sales rose to 25.1 billion kroner (about 22,817 crore) during the first quarter of the year.
The company said its Indian arm contributed 2.3% of the 8% sequential organic revenue growth of the entire group. Uninor's sales rose to 922 crore from 500 crore in January-March 2011. However, Uninor's operating loss increased three-fold compared with the previous year.
"If it hadn't been for the current regulatory situation, Uninor would have been EBITDA break-even in the second quarter of 2013," said Jon Fredrik Baksaas, president and CEO of Telenor Group.
A company spokesman said, "Our main focus is to secure continued operations in India. If the proposed recommendations from Trai become policy, then the Government of India will be forcing Telenor Group to exit."
Although the global telecom major maintained its outlook for the year, it said its forecast excluded India operations due to high uncertainty.
