Feeds

MMO2 weighs in with £10.2bn loss

Easily done

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.