Telenor books loss on Scandinavian expansion

9 Feb 2005

Norway’s dominant telecoms operator Telenor has booked a loss of more than USD458 million for its Swedish and Danish operations, highlighting the problems associated with its Scandinavian expansion plans. Despite reporting gains from its interests in operators in Malaysia, Russia, Hungary and Bangladesh, the Norwegian incumbent has struggled to carve a niche for itself closer to home. In 2004 it paid USD633 million to acquire the remaining 46% of Danish cellco Sonofon it did not already own, but saw net incomes falling there in the face of fierce competition in the Danish mobile market. In addition, it has faced growing pressure on its position as the second largest player in Denmark following Tele2’s acquisition of Orange Denmark in mid-2004. Elsewhere, its Swedish activities have been hit hard by competition in the low-cost segment from Djuice, a VNO that piggybacks its services on Tele2’s network.

Norway, Sonofon, Telenor Group, Telenordia