Loss in disposal of Indian arm takes Vodafone loss to €7.8 billion in H12018

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New Delhi | Published: November 14, 2018 2:06:34 AM

British telecom major Vodafone on Tuesday posted a loss of €7.8 billion for the first half of 2018 owing to a loss of €3.4 billion on the disposal of its Indian arm and impairment charges related to investments in Spain and Romania.

The company had posted a profit of €1.2 billion in the same period of 2017.

British telecom major Vodafone on Tuesday posted a loss of €7.8 billion for the first half of 2018 owing to a loss of €3.4 billion on the disposal of its Indian arm and impairment charges related to investments in Spain and Romania.

The company had posted a profit of €1.2 billion in the same period of 2017.
“Six months ended September 30, 2018, includes €3.5 billion of impairment charges in respect of the group’s investments in Spain, Romania and Vodafone Idea and a €3.4-billion loss on the disposal of Vodafone India,” Vodafone said in a statement.
Vodafone Idea now operates as a merged entity with Aditya Birla group’s telecom arm Idea Cellular. The merger was completed in August and its July-September quarter earnings will be announced on Wednesday.

“Vodafone India has been excluded from Group figures for all periods up to August 31, 2018, and the results of Vodafone Idea have been included in all Group figures for all periods thereafter, unless otherwise stated,” the British telecom firm said.
Vodafone group’s financial numbers included July-August performance of Vodafone India. The Indian arm of the group registered €955-million revenue from services during the two months.
Vodafone owns a 45.2% stake in Vodafone Idea and Aditya Birla Group owns a 26% stake.
The revenue of Vodafone group dropped by 5.5% to €2.17 billion at the end of the reported period compared with €2.3 billion registered a year ago.

Vodafone said the market environment in India remains highly challenging with significant pricing pressure, which has led to industry consolidation but a significantly lower level of profitability and greater pressure on financing.

“Management continues to consider it reasonable to assume an overall market and pricing recovery, however the timing and magnitude remains highly uncertain,” it said.

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