Uninor shaves operating loss by half

New Delhi, Dec. 2 (PTI): Telecom operator Uninor narrowed its operating loss by half to around Rs 512 crore (Norwegian Krone 536 million) for the quarter ended September 30, 2012.

The company, in which Norwegian telecom firm Telenor holds a majority stake, had suffered an operating loss of around Rs 1,037 crore (NOK 1,084 million) during the same period a year ago.

Accumulated losses of Uninor stood at around Rs 13,300 crore as on the third quarter of 2012, Telenor said in a presentation.

Revenues improved 3 per cent during the period to Rs 825 crore (NOK 863 million) from Rs 801 crore (NOK 837 million) in the corresponding period of the previous financial year.

Uninor's licences were cancelled by the Supreme Court in February and are valid till January 18, 2013. After this date, the assets and business of the company will be transferred to a new entity Telewings Communications, in which Telenor has around 74 per cent stake.

Telenor participated in the recent spectrum auction through Telewings and has won spectrum in six circles ' UP East, UP West, Bihar, Andhra Pradesh, Gujarat and Maharashtra ' for around Rs 4,018 crore.

After January 18, the company will operate only in these six circles against nine circles at present.

Telenor Group president and CEO Jon-Fredrik Baksaas had said on Thursday that Uninor's business in UP East has become profitable and the company expected to break-even in the rest of its service areas by 2013.

Telenor said Uninor's financial performance impacted the financial performance of the group.