Telenor posts Q1 loss in wake of India impairment charge

Norwegian telco Telenor has posted a net loss of NOK390 million (USD67.3 million) for the first quarter of 2012 after booking a massive NOK3.9 billion impairment charge on its Indian operations. The move follows the decision of the country’s Supreme Court earlier in the year to cancel 122 telecoms licences on the grounds that their allocation had been ‘totally arbitrary and unconstitutional’. Telenor says that the significant price hike for spectrum when it is reauctioned later this year means that is ‘almost impossible’ to remain in India. Revenue for the quarter was 4% higher year-on-year, reaching NOK25.1 billion, while adjusted EBITDA was up 5% to NOK7.7 billion. The telco has updated its guidance to exclude India, saying it now expects revenue for 2012 to grow at a rate above 4%, down from an above 5% target set three months ago.