Remember our article on struggling mobile operators in India? Telenor’s Uninor is one of them, but apparently that’s part of the plan, too. The Norway-based company pledged that its fledging Indian operations is on track to achieve profitability targets.
Speaking at a presentation to analysts and investors, Telenor CEO Jon Fredrik Baksaas said they intended to “develop Uninor in India according to plan” and aimed to “continue to deliver growth above peers.”
The mentioned plan includes breaking even in terms of EBITDA three years after its launch in late 2009, while breakeven on an operating cash flow level would come five years after launch.
At a group level, Telenor has identified “significant” potential to improve its operational efficiency and initiated programmes to boost margins. The company is aiming to reduce its operating expenditure to 35% of sales by 2013 from 39% in 2009, with capex reduced to 10% of sales by 2013, from 13% last year.
Uninor is reported to have racked up around 3.4 billion NOK ($556 million) in operating losses to date, leading analysts to question its profitability targets…
[Via: MobileBusinessBriefing]