OSLO (Reuters) – Norway’s Telenor mentioned on Tuesday it had written off the worth of its Myanmar operation in mild of the nation’s deteriorating safety and human rights state of affairs, plunging the group right into a first-quarter loss.
Whereas it should 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.
The corporate added some 2 million customers in Myanmar throughout the quarter, growing 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 knowledge that has since minimize Telenor’s subscription and site visitors revenues within the nation in half, the corporate mentioned.
“We see an irregular, unsure, and deeply regarding state of affairs,” Telenor Chief Government Sigve Brekke mentioned in an announcement commenting on Myanmar.
“As a result of worsening of the financial and enterprise setting outlook and a deteriorating safety and human rights state of affairs, we see restricted prospects of enchancment going ahead.”
Telenor totally impaired Telenor Myanmar in its first-quarter accounts, reserving a lack of 6.5 billion Norwegian crowns ($783 million) and eradicating the operation from its total company outlook for 2021.
The corporate goals to deal with the safety of its staff in addition to entry to providers for purchasers and continued transparency, Brekke mentioned.
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.
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 web achieve of 5 million because the begin of the 12 months, final month introduced plans to merge its Malaysian unit with competitor Axiata, looking for to kind a brand new market chief..
($1 = 8.3020 Norwegian crowns)
Modifying by Kim Coghill and Kirsten Donovan
— to www.reuters.com