Telenor offloads Nextra in Hungary and Austria

31 Jan 2003

Nordic PTO Telenor [TEL.OL] has announced the sale of its Nextra operations in Hungary and Austria for an undisclosed amount. The sale of the data and internet subsidiaries is part of Telenor’s ongoing cost-cutting strategy as it continues to struggle with weak demand for IT services and falling growth margins in its domestic market. The cost of restructuring Telenor Business Solutions, which included a writedown of NOK738 million, meant the company posted a loss of NOK105 million for the third quarter of 2002, despite a 21% rise in sales to NOK12.21 billion compared to the corresponding period of 2001. Nextra’s Austrian division has been sold to business communications provider AirCALL whilst the Hungarian operations have been purchased via a management buyout. Both companies will continue to operate under the Nextra brand.

Norway