Feeds

MMO2 weighs in with £10.2bn loss

Easily done

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

MMO2 reported a whopping pre-tax loss of £10.2bn for last year after the mobile telco decided to slash the value of its 3G licences and other assets.

The company says this massive exceptional charge is likely to mask MMO2's "strong underlying performance delivered in [its] first full year as an independent company".

It ain't wrong.

O2 has written down the value of its 3G licences in the UK and Germany by almost £6bn, while the sale of O2 Netherlands last month for €25m resulted in an accounting loss of £1.4bn. Include the other odds and sods and it quickly adds up.

On the matter of 3G the company said that following a review of the launch dates for its 3G services it would adopt a "more prudent timetable where local regulatory requirements permitted".

It continued: "The revision in this timetable, together with the current absence of evidence as to the present mass market appeal of 3G services and the limited availability of 2G/3G compatible handsets, has led management to review and revise the business plans of its mobile operations across its European footprint."

MMO2 has also cut the number of staff in its UK and German operation by around 20 per cent (1,900 employees) over the last year as it looked to trim overheads.

Despite this headline grabbing stuff, O2 insists that there are reasons to be cheerful. Overall, the number of punters increased by 11 per cent to just under 20 million.

Revenue for the year ended 31 March 2003 was up 14 per cent at £4.3bn while EBITDA (earnings before interest etc) almost doubled to £859m.

Shares in MM02 - formerly BT Cellnet - were up 1.5p (2.7 per cent) at 56.75p in early morning trading. ®

Security for virtualized datacentres

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.