Norway’s Telenor (TEL.OL) stated on Tuesday it had written off the worth of its Myanmar operation in mild of the nation’s deteriorating safety and human rights scenario, plunging the group right into a first-quarter loss and sending its shares decrease.
Whereas it’ll proceed to function in Myanmar, Telenor’s cellular enterprise within the Asian nation, the place it has had a presence since 2014, stays severely restricted following the navy’s seizing of energy in a Feb. 1 coup. read more
The corporate added some 2 million customers in Myanmar through the quarter, rising its native buyer base to 18.2 million.
However the brand new regime imposed community restrictions for all operators, and on March 15 ordered a nationwide shutdown of cellular information that has since reduce Telenor’s subscription and site visitors revenues within the nation in half, the corporate stated.
Whereas Telenor noticed an “irregular, unsure, and deeply regarding scenario” with restricted prospects of enchancment going ahead, Telenor would keep in Myanmar for now, CEO Sigve Brekke stated.
“Regardless of the difficult scenario we see within the nation we nonetheless consider we’re making a distinction when retaining our operations operating,” he instructed an earnings presentation.
“We try to proceed to take action to the most effective of our potential.”
Telenor totally impaired Telenor Myanmar in its first-quarter accounts, reserving a lack of 6.5 billion crowns ($783 million) and eradicating the operation from its total company outlook for 2021.
Because of the writedown, the Telenor group’s internet earnings slumped to a lack of 3.9 billion Norwegian crowns within the first quarter from a year-ago revenue of 698 million crowns.
Telenor shares had been down 2.0% at 0722 GMT, lagging a flat Oslo benchmark index (.OSEBX).
Adjusted earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) fell 8% year-on-year to 13 billion crowns, in keeping with an analyst forecast of 13.1 billion crowns.
Telenor, reiterated full-year steering for total natural income and earnings to stay unchanged year-on-year from 2020. It repeated that capital expenditure would quantity to between 15% and 16% of gross sales.
The corporate, which serves 187 million clients in 9 international locations throughout Europe and Asia, a internet acquire of 5 million because the begin of the 12 months, final month introduced plans to merge its Malaysian unit with competitor Axiata (AXIA.KL), in search of to kind a brand new market chief. .
($1 = 8.3020 Norwegian crowns)
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