British telecom major Vodafone posted over two-fold increase in losses in 5-billion euro in the first half of the fiscal ended September due to impairment of non-cash assets of Indian arm following tough competition. The company reported a loss of 2.34 billion euro in the same period last year. Releasing its financial statement, Vodafone said, "We recorded a non-cash impairment of 5-billion euro, net of tax, in the period relating to our Indian business. This was driven by lower projected cash flows within our business plan as a result of increased competition in the market."
It added that the group's operating loss was 4.7 billion euro, compared to an operating profit of 1.1 billion euro in the prior period, due to the 6.4 billion euro gross impairment charge recorded in respect of the group's investment in India and lower EBITDA. India's three main players, Bharti Airtel, Vodafone and Idea Cellular have a tough competitor in Reliance Jio, backed by Reliance chief Mukesh Ambani.
