Norwegian telecoms firm Telenor today reported giant write-offs in its Internet and mobile investments, pushing second-quarter profit below analysts' forecasts.
The partially privatised group posted one-off gains of euro 1.3 billion from the sale of its 49.5 per cent stake in Irish mobile group Esat Digifone.
But earnings before interest, tax, depreciation and goodwill amortisation (EBITDA) for the period slipped to euro 271 million from 275 million last year.
Analysts had projected on average pre-tax profits would jump to 10.42 billion crowns and the EBITDA would rise to euro 287 million.
The group, which has been hit by global sector weakness and slowing world growth, said it had cut its ambition of a pan-European Internet service.
The Norwegian government is open to reducing its stake in Telenor to 34 per cent - which would bolster the firm's finances.
Telenor shares closed yesterday at 37.20 Krone (euro 4.60), against a flotation price of 42 Krone (euro 5.20).