Vodafone posts loss on new India fallout

London: Vodafone on Tuesday posted a net loss of more than €2.1 billion (Dh8.49 billion) in its first half after India’s Supreme Court ordered telecoms companies to pay long-standing bills.

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In the six months to September 30, the British group’s loss after tax stood at €2.128 billion ($2.735 billion).

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However that was far less than its net loss of almost 8.0 billion euros during the corresponding period one year earlier.

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The latest results were affected mainly by “a loss at Vodafone Idea following an adverse legal judgement against the industry by the Supreme Court, partially offset by a profit on the disposal of Vodafone New Zealand,” a statement said in reference to the group’s Indian unit.

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Vodafone’s underlying performance showed an operating profit compared with a previous operating loss, meanwhile.

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“I am pleased by the speed at which we are executing on the strategic priorities that we announced this time last year,” chief executive Nick Read said in the earnings statement.

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Vodafone shares jumped 1.8 per cent to 163 pence after it raised its guidance for full-year earnings.

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One year ago, Read launched a 1.2-billion-euro cost-cutting plan – after Vodafone had taken a 3.5-billion-euro writedown on the declining value of activities in India, Spain and Romania.

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Vodafone had also made a 3.4-billion-euro loss from the sale of Indian operations.

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Last month meanwhile, beleaguered Indian telecoms companies were told to pay a combined $13-billion bill.

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After a two-decade legal wrangle, the Supreme Court ruled that telecom firms had to pay the amount in past spectrum and licensing fees.

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