Job cuts and write-downs affect Telenor Q4

13 Feb 2003

Norwegian PTO Telenor [TEL.OL] has posted a net loss of NOK4.49 billion (USD647 million) for the fourth quarter of 2002, compared with NOK867 million net income in the same period twelve months earlier. Company CEO Jon Fredrik Baksaas blamed the performance on costs associated with job losses, reorganisation of the business and writing down assets; Telenor shed more than 1,500 staff during 2002 as part of a bid to reduce costs by NOK4 billion from 2004. The PTO wrote down its stakes in Digi.Com of Malaysia by NOK2.1 billion, Denmark’s Sonofon by NOK1 billion and Thailand’s Total Access Communications and United Communications Industry by a total of NOK900 million. Revenues for the last three months of 2002 were up by 19.6% year-on-year to NOK13 billion, excluding gains from the sale of assets, while EBITDA stood at NOK3.57 billion, compared with NOK2.29 billion. Telenor turned an operating profit of NOK4.4 billion into a loss of NOK2 billion, while booking a pre-tax loss of NOK5.34 billion, compared with NOK708 million profit in Q4 2001.

Norway, Telenor Group