on Wednesday morning la Telenor forward to a recent quarterly report that was clearly the mark of two problem areas for telegiganten.
Even though the company had a solid performance with constantly improving efficiency on the cost side, provided the business in India and aksjesalget in work at vimpelcom, the group had a net loss of around 4.8 billion.
Telenor management team is now working intensely to find a solution to the India-floken.
Even if one for the first time in a long time be able to demonstrate a positive operating profit in the third quarter, there is little doubt that something must be done.
Earlier this year notified the ceo Sigve Brekke that he will have a final solution on the pass for India-business within the new year.
Telenor surprises with strong earnings: But work at vimpelcom and India is weighing the bottom line
– We are considering still what our long-term solution should be. All options are on the table, but it is too early to say exactly what it is, ” says Brekke to E24 after he has presented the results.
– Not sustainable
Under the kvartalspresentasjonen Wednesday said Sigve Brekke that the operation in India was good in the third quarter, despite very rough competition in the market.
He pointed out also that the business had positive cash flow after many quarters of losses.
– But the spectrum (mobilfrekvenser, journ.anm.) is a challenge. We chose not to participate in the frekvensauksjonen in October, and we don’t have a frekvensløsning that is sustainable in the long term, said the Break in the presentation.
While Telenor sat on the sidelines, joined competitors such as Vodafone, Bharti, Reliance, Tata and Aircel on the auction where the indian authorities for the first time opened the 700 band for telecom operators, in addition to a whole range of other frequencies.
When Telenor now is not with, makes it that they are put even more behind in the competition in one of the world’s largest emerging economies.
that Telenor dropped auction in India is by many interpreted as the last character in a series that Telenor is on the way out. The Telenor boss explains to E24 that it simply was too expensive:
We saw that we failed to come home and create profitability on the startprisene that was in the auction.
Even though the market is tough in India, there is little doubt that there are great opportunities for those who manage to succeed. A recent study from the international trade association for the mobilindustrien, the GSMA, estimates that the mobile market in India will grow to one billion users by 2020.
– What is it in the assessment you are now doing as a speaker to be in India?
– We are in India of one cause, and that is to create value. So any opportunities must be within the frame, ” says Brekke, and does not hide the fact that both acquisitions, the partnership or a sale in India is on the table:
– We’ll see if there are options that make that we can do to create value in the years to come, or if it is not there. It is this that it is essential, ” says Brekke.
the EUROPEAN union said no to the Telenor merger and yes to work at vimpelcom
In the third quarter, could Telenor also show a better development in Malaysia and Thailand, while there was a great upsurge in including datainntektene in Pakistan and Bangladesh.
In Myanmar, continue the fantastic growth, and after having launched 4G in the capital in the summer jobs Telenor now to get rolled this out in the rest of the country.
Sigve Brekke pointed out that it is now the third quarter in a row that the Myanmar-business goes with a positive cash flow.
the Whole of Myanmar, the initiative has so far been far better than Telenor dared to hope for even when they launched their services in the country for a couple of years ago, and Sigve Brekke pointed out that the vekstfarten probably going to slow down a little bit as increasingly larger segments of the population have been mobile:
– You will not see an equally fantastic growth there going forward, but growth is far from finished.
the Situation with one of our closest neighbours is, however, far tougher for Telenor. The development in Denmark is in line with the previous year, but there are still razor-thin margins and small results compared with, for example, Norway and Sweden.
I have not given any deadline for Denmark. But given the competitive situation we have had where, over a period, so it is not possible to earn money if not you can find some konsolideringsalternativer. It is something we see on all the time, but we do not have any concrete plans right now. It must be a long-term solution to it, ” says Brekke.
Telia and Telenor tried to merge the Danish mobile companies to one company, but it put the European union’s competition authorities foot down. At the same time, work at vimpelcom and Hutchison a few days ago, got the green light to so together Wind and Italy 3 in Italy into one jointly owned company.
Brekke says that they have gone thoroughly through the European union’s decision in their case, and they also analyze other decisions that have come since, including the approval that was given in Italy.
We look at the different scenarios that may provide a possible EU-approval, but just what it is is it too early to tell, ” says Brekke.
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