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Norway-based Telenor’s operating loss widened to NOK 4043 million in the third quarter, negatively impacted by NOK 4.1 billion in impairments and write downs. The company had reported NOK 373 million operating loss in a year earlier period.
Telenor Group had reassessed the fair value less cost of disposal of Telenor India in the first quarter 2016 and an impairment loss of NOK 2.3 billion was recognised, of which NOK 1.4 billion mainly related to switches and radio installations and the remaining NOK 0.9 billion mainly related to licences. In the third quarter 2016, the Group reassessed the fair value of the licences based on recent observations in the Indian market.
The assessment resulted in an additional impairment of the licences in the third quarter 2016 of NOK 4.0 billion.
“Based on recent observations in the Indian market, the fair value of the licences in Telenor India has been assessed, resulting in an impairment loss of NOK 4.0 billion,” the company said.
Telenor didn’t participate in the recently concluded spectrum auctions, signaling the Norwegian mobile phone operator's clear intent of exiting a market where it has been making losses and has struggled to expand operations.
Telenor has been looking for potential buyers of its operations in the country. ET had earlier reported that Vodafone was talking to this Norway-based company for the acquisition of latter’s operations in India.
A separate ET NOW report recently said that Telenor India was in talks with Tikona Digital for merging parts of broadband spectrum business. The report added that voice business may be kept out of potential merger, and the deal may focus on data business. The deal, if goes through, will give spectrum footprint to Telenor India and Tikona Digital in new circles.
Telenor has been pushed into a corner in India thanks to its very limited data spectrum holdings, and also being confined to just a few pockets, especially when incumbent carriers such as Bharti Airtel, Vodafone India and Idea Cellular, and the new entrant Reliance Jio have launched 4G services.
Telenor India currently has 4G airwaves in the 1800 Mhz band in seven circles but offers 2G services in six of them - Andhra Pradesh, Uttar Pradesh East and West, Bihar, Gujarat and Maharashtra. It hasn't yet started services in Assam.
Revenue increased 12% in local currency during the quarter, Telenor said. It posted NOK 1545 million revenue in the third quarter, as compared to NOK 1411 million.
Telenor India’s subscriber base went down by 186,000 in the third quarter. It said that overall base was 9% higher on the quarter than the same quarter last year. ARPU in local currency increased slightly to Rs 92, the company said.
Telenor India’ subscription and traffic revenues reached NOK 1311 million in the second quarter, up from NOK 1213 million in a year earlier period. The telco’s interconnect revenues stood at NOK 220 million, up from NOK186 in a year earlier period.
The EBITDA improved significantly during the quarter to reach NOK 132 million, as result of the revenue growth and positive effects from the ongoing network modernisation programme.
Capital expenditure stood at NOK 186 million in the quarter, mainly impacted by committed purchase orders from previous quarters related to the network modernization. Telenor had posted NOK 195 in capital expenditure in a year earlier period.
Telenor India Q3 operating loss widens due to impairments and write downs - ET Telecom
Telenor Group had reassessed the fair value less cost of disposal of Telenor India in the first quarter 2016 and an impairment loss of NOK 2.3 billion was recognised, of which NOK 1.4 billion mainly related to switches and radio installations and the remaining NOK 0.9 billion mainly related to licences. In the third quarter 2016, the Group reassessed the fair value of the licences based on recent observations in the Indian market.
The assessment resulted in an additional impairment of the licences in the third quarter 2016 of NOK 4.0 billion.
“Based on recent observations in the Indian market, the fair value of the licences in Telenor India has been assessed, resulting in an impairment loss of NOK 4.0 billion,” the company said.
Telenor didn’t participate in the recently concluded spectrum auctions, signaling the Norwegian mobile phone operator's clear intent of exiting a market where it has been making losses and has struggled to expand operations.
Telenor has been looking for potential buyers of its operations in the country. ET had earlier reported that Vodafone was talking to this Norway-based company for the acquisition of latter’s operations in India.
A separate ET NOW report recently said that Telenor India was in talks with Tikona Digital for merging parts of broadband spectrum business. The report added that voice business may be kept out of potential merger, and the deal may focus on data business. The deal, if goes through, will give spectrum footprint to Telenor India and Tikona Digital in new circles.
Telenor has been pushed into a corner in India thanks to its very limited data spectrum holdings, and also being confined to just a few pockets, especially when incumbent carriers such as Bharti Airtel, Vodafone India and Idea Cellular, and the new entrant Reliance Jio have launched 4G services.
Telenor India currently has 4G airwaves in the 1800 Mhz band in seven circles but offers 2G services in six of them - Andhra Pradesh, Uttar Pradesh East and West, Bihar, Gujarat and Maharashtra. It hasn't yet started services in Assam.
Revenue increased 12% in local currency during the quarter, Telenor said. It posted NOK 1545 million revenue in the third quarter, as compared to NOK 1411 million.
Telenor India’s subscriber base went down by 186,000 in the third quarter. It said that overall base was 9% higher on the quarter than the same quarter last year. ARPU in local currency increased slightly to Rs 92, the company said.
Telenor India’ subscription and traffic revenues reached NOK 1311 million in the second quarter, up from NOK 1213 million in a year earlier period. The telco’s interconnect revenues stood at NOK 220 million, up from NOK186 in a year earlier period.
The EBITDA improved significantly during the quarter to reach NOK 132 million, as result of the revenue growth and positive effects from the ongoing network modernisation programme.
Capital expenditure stood at NOK 186 million in the quarter, mainly impacted by committed purchase orders from previous quarters related to the network modernization. Telenor had posted NOK 195 in capital expenditure in a year earlier period.
Telenor India Q3 operating loss widens due to impairments and write downs - ET Telecom