Vodafone India suffers £2.3bn impairment on competition fears
Vodafone India has suffered a £2.3bn provision thanks to the Indian authorities’ decision to allow a further six companies to enter the country’s mobile phone market.
By taking the provision in its full-year results, Vodafone Group has written down the…
Vodafone India has suffered a £2.3bn provision thanks to the Indian authorities’ decision to allow a further six companies to enter the country’s mobile phone market.
By taking the provision in its full-year results, Vodafone Group has written down the value of Vodafone India by more than 28% from some £8bn to £5.7bn.
The provision, which demonstrates the dangers for foreign companies investing in Indian telecoms, pushed down Vodafone Group’s profit for the last 12 months to £11.5bn.
The company partially offset the provision because Vodafone Turkey managed to reverse a previous provision of £200m.
At the company’s full-year results briefing on 18 May, Vittorio Colao, the group chief executive officer, refused to discuss the ongoing Indian spectrum auction for mobile phone operators.
