Norway’s Telenor (TEL.OL) mentioned 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 would 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 throughout 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 minimize Telenor’s subscription and visitors revenues within the nation in half, the corporate mentioned.
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 mentioned.
“Regardless of the difficult scenario we see within the nation we nonetheless imagine we’re making a distinction when maintaining our operations operating,” he informed an earnings presentation.
“We attempt to proceed to take action to the very best of our means.”
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 general company outlook for 2021.
On account of the writedown, the Telenor group’s web 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, according to an analyst forecast of 13.1 billion crowns.
Telenor, reiterated full-year steerage for general 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 prospects in 9 nations throughout Europe and Asia, a web achieve of 5 million for the reason that begin of the yr, final month introduced plans to merge its Malaysian unit with competitor Axiata (AXIA.KL), searching for to kind a brand new market chief. .
($1 = 8.3020 Norwegian crowns)
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