Voda­fone loss dou­bles on In­dia woes

The Myanmar Times - - Business -

BRI­TISH mo­bile phone gi­ant Voda­fone said yes­ter­day its first-half net loss dou­bled to more than 5 bil­lion euros ow­ing to a huge write­down for its In­dian unit. Voda­fone said its loss af­ter tax soared to 5.1 bil­lion euros (US$5.5 bil­lion) in the six months to Septem­ber 30 com­pared with a net loss of 2.5 bil­lion euros a year ear­lier.

Voda­fone said it was hit by an im­pair­ment charge of 6.4 bil­lion euros “in re­spect of the group’s in­vest­ment in In­dia”.

“Com­pe­ti­tion in In­dia has in­creased in the year, re­duc­ing rev­enue growth and prof­itabil­ity,” Voda­fone chief ex­ec­u­tive Vit­to­rio Co­lao said in the re­sults state­ment.

“We have re­sponded to this chang­ing com­pet­i­tive en­vi­ron­ment by strength­en­ing our data and voice com­mer­cial of­fers and by fo­cus­ing our par­tic­i­pa­tion in the re­cent spec­trum auc­tion on ac­quir­ing fre­quen­cies in the more suc­cess­ful and prof­itable ar­eas of the coun­try,” he added.

Strip­ping out the ex­cep­tional hit from In­dia as well as in­ter­est pay­ments, Voda­fone posted pre-tax profit of 7.9 bil­lion euros for the first half, a drop of 1.7 per­cent com­pared with a year ear­lier.

Photo: AFP

A shut­tered store in In­dia.

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