Telenor Q1 profit drops 65%; terms Unitech deal 'milestone'

Norwegian telecom major Telenor, which has snapped up a majority stake in Indian player Unitech Wireless, today posted a 65 per cent drop in the first quarter profit at 1.62 billion Norway kroner (about $250 million).

Telenor, which closed the transaction with Unitech Wireless in March this year, has termed the deal as a "milestone".

The Norwegian firm has reported profits to the tune of 1.62 billion kroner for the first quarter of 2009, which is down 65 per cent as compared to 4.57 billion kroner in the corresponding period a year ago.

During the same period, revenues rose to 27.12 billion kroner as against 26.29 billion kroner in the year-ago period.

"The closing of the Unitech Wireless deal in India on March 20, 2009 marks a milestone for the Telenor Group. An experienced management team is in place, and is currently preparing for launch of services during the second half of 2009," Telenor's President and CEO Jon Fredrik Baksaas said in a statement.

Telenor would buy a controlling stake in Unitech Wireless, through subscription of new shares, which would be completed in four phases.