FINANCIAL REPORTING ASSIGNMENT

ON
TELECOMMUNICATION INDUSTRY OF 5 COMPANIES

Submitted To: Ms. Neha Puri

Submitted By: Shubham Chauhan
Course:B.Com.Hons.
Enrl. No.:A3146917018
TELECOMMUNICATION INDUSTRY

• VODAFONE
• IDEA
• AIRTEL
• JIO
• TELENOR
ACKNOWLEDGEMENT
I would like to thank my teacher – Ms Neha Puri for providing me
guidance throughout this project.
I would also like to thank my parents for providing me all the
equipment required by me to complete this project.
I would also like to thank my friends for helping me complete this
project well on time.
Without the help of all mentioned above, it would have been very
difficult for me to complete this project.
Thank you
Shubham Chauhan
What are Amalgamations, Reconstructions
and Mergers
AMALGAMATION : In corporate finance, an amalgamation is the combination of two
or more companies into a larger single company.
In accounting an amalgamation, or consolidation, refers to the combination of financial
statements. For example, a group of companies reports their financials on a consolidated
basis which includes the individual statements of several smaller businesses.
Amalgamations are often done when competing companies engaged in similar business
would achieve some synergy or cost savings by combining their operations, which can be
quantified in a financial model. By contrast, it can also occur when companies want to
enter new markets or get into new business and mergers and acquisitions as a way to
achieve that.
RE CONSTRUCTION
 When a company is suffering loss for several past years and suffering from financial difficulties, it
may go for reconstruction. In other words, when a company's balance sheet shows huge
accumulated losses, heavy fictitious and intangible assets or is in financial difficulties or is to over
capitalized, and then the process of reconstruction is restored.
 Reconstruction may be internal and external:
a) External reconstruction: When a company is suffering losses for the past several years and facing
financial crisis, the company can sell its business to another newly formed company. Actually, the
new company is formed to take over the assets and liabilities of the old company. This process is
called external reconstruction. In other words, external reconstruction refers to the sale of the
business of existing company to another company formed for the purposed. In external
reconstruction, one company is liquidated and another new company is formed. The liquidated
company is called "Vendor Company" and the new company is called "Purchasing Company".
Shareholders of vendor company become the shareholders of purchasing company.
b) Internal reconstruction: Internal reconstruction refers to the internal re-organization of the
financial structure of a company. It is also termed as re-organization which permits the existing
company to be continued. Generally, share capital is reduced to write off the past accumulated
losses of the company. The accounting procedure ofinternal reconstruction is distinct from that of
amalgamation, absorption and external reconstruction.
Mergers:

• A merger is an agreement that unites two existing companies into one

new company. There are several types of mergers and also several
reasons why companies complete mergers. Mergers and acquisitions
are commonly done to expand a company’s reach, expand into new
segments, or gain market share. All of these are done to please
shareholders and create value.
VODAFONE
• Vodafone Group plc is a British multinational telecommunications conglomerate, with
headquarters in London and Newbury, Berkshire. It predominantly operates services in
the regions of Asia, Africa, Europe, and Oceania. Among mobile operator groups globally,
Vodafone ranked 4th (behind China Mobile, Bharti Airtel and Vodafone Idea) in the
number of mobile customers (313 million) as of 2018.
• Vodafone owns and operates networks in 25 countries, and has partner networks in 47
further countries. Its Vodafone Global Enterprise division
provides telecommunications and IT services to corporate clients in 150 countries.
• Vodafone has a primary listing on the London Stock Exchange and is a constituent of
the FTSE 100 Index. It had a market capitalisation of approximately £52.5 billion as of
10 February 2016, the eighth-largest of any company listed on the London Stock
Exchange
ANNUAL REPORT
BALANCE SHEET
 RATIO ANALYSIS
Profitability Ratios
Operating Profit Margin(%) 20.28 28.61 33.22 30.92 27.78
Profit Before Interest And
Liquidity And Solvency
-9.49 6.75 15.76 15.18 12.07
Tax Margin(%) Ratios
Gross Profit Margin(%) -9.59 6.78 15.84 15.40 12.10
Cash Profit Margin(%) 12.56 19.36 24.65 24.15 22.08
Current Ratio 0.50 0.29 0.26 0.39 0.42
Adjusted Cash Margin(%) 12.56 19.36 24.65 24.15 22.08 Quick Ratio 0.44 0.28 0.31 0.39 0.46
Net Profit Margin(%) -17.17 -2.35 7.39 8.98 6.46
Debt Equity Ratio 2.22 2.18 1.52 0.74 1.14
Adjusted Net Profit
-16.99 -2.34 7.35 8.85 6.45
Margin(%) Long Term Debt Equity
2.22 2.18 1.45 0.73 1.10
Return On Capital
-2.87 3.43 9.38 13.85 9.68 Ratio
Employed(%)
Return On Net Worth(%) -18.62 -3.50 10.68 12.83 10.83 Debt Coverage Ratios
Adjusted Return on Net
-18.62 -3.50 10.68 12.83 10.83 Interest Cover -0.48 0.65 3.29 5.66 5.17
Worth(%)
Return on Assets Excluding Total Debt to Owners
58.88 65.80 68.78 60.84 46.95 2.22 2.18 1.52 0.74 1.14
Revaluations Fund
Return on Assets Including
Revaluations
58.88 65.80 68.78 60.84 46.95 Financial Charges
1.21 2.57 6.79 10.87 11.72
Return on Long Term
-2.87 3.43 9.64 13.90 9.86
Coverage Ratio
Funds(%)
Financial Charges
Coverage Ratio Post 1.72 2.71 5.99 9.23 10.26
Tax
AMALGAMATION
• VODAFONE-HUTCHISON ESSAR: Vodafone India Ltd. is the second
largest mobile network operator in India by subscriber base, after
Airtel. Hutchison Essar Ltd (HEL) was one of the leading mobile
operators in India. In the year 2007, the world’s largest telecom
company in terms of revenue, Vodafone made a major foray into the
Indian telecom market by acquiring a 52 percent stake in Hutchison
Essat Ltd, a deal with the Hong Kong based Hutchison
Telecommunication International Ltd. Vodafone main motive in going
in for the deal was its strategy of expanding into emerging and high
growth markets like India. Vodafone’s purchase of 52% stake in Hutch
Essar for about $10 billion. Essar group still holds 32% in the Joint
venture.
IDEA
• Vodafone Idea Limited is an Aditya Birla Group Company, India's first truly multinational corporation.
Idea is a pan-India integrated wireless broadband operator offering 2G, 3G and 4G services, and has
its own NLD and ILD operations, and ISP license. Idea is one of the top three mobile operators in
India, with an annual revenue in excess of USD 5 billion and a revenue market share of 19%. With
nearly 200 million subscribers, Idea ranks sixth in the global rankings of operators in subscriber
terms, for single country operations.
•
• In line with the Government’s vision of Digital India, Idea has accelerated its efforts of building a
digital economy. Backed with a pan-India wireless broadband coverage, Idea forayed into Digital
services with the launch of a suite of digital entertainment apps - Idea Music, Idea Movies & TV and
Idea Games. With this the company has begun its transformation from a pure play mobile operator
to an integrated digital services and solutions provider. Idea will also expand its digital offerings into
digital communication, digital payments, cloud & storage, digital information and many more.
ANNUAL REPORT
 Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 27,828.60 35,278.65 35,803.69 31,279.47 26,110.40

Net Sales 27,828.60 35,278.65 35,803.69 31,279.47 26,110.40

Other Income 298.20 197.03 163.90 452.34 69.07

Total Income 28,126.80 35,475.68 35,967.59 31,731.81 26,179.47

Expenditure

Power & Fuel Cost 0.00 2,952.22 2,460.36 2,394.40 2,233.87

Employee Cost 1,396.80 1,625.64 1,473.52 1,358.73 1,161.01

Other Manufacturing Expenses 0.00 19,183.73 18,623.30 16,664.56 14,416.59

Selling and Admin Expenses 0.00 455.40 483.32 0.00 0.00

Miscellaneous Expenses 20,786.10 966.82 868.60 1,188.37 1,044.69

Total Expenses 22,182.90 25,183.81 23,909.10 21,606.06 18,856.16

MERGERS
• Vodafone Idea is a pan-India integrated GSM operator offering 2G, 3G and 4G mobile
services under two brands named Vodafone and Idea. Vodafone Idea also provides
services including Mobile payments, IoT, advanced enterprise offerings and
entertainment, accessible via both digital channels as well as on-ground touch points,
centers across the country. The company's vision is 'to create world class digital
experiences to connect and inspire every Indian to build a better tomorrow'. As of
December 2018, Vodafone Idea has 35.61% market share in India with 418.745 million
subscribers, making it the largest mobile telecommunications network in India
and second largest mobile telecommunications network in the world. Vodafone Idea has
a broadband network of 340,000 sites, distribution reach of 1.7 million retail outlets.
• On 31 August 2018, Vodafone India merged with Idea Cellular, and was renamed as
Vodafone Idea Limited. However, the merged entity continues using both the Idea and
Vodafone brand. Currently, the Vodafone Group holds a 45.1% stake in the combined
entity, the Aditya Birla Group holds 26% and the remaining shares will be held by the
public. Kumar Mangalam Birla heads the merged company as the Chairman, with Balesh
Sharma as the CEO.
Bharti Airtel Limited (commonly shortened to Airtel and stylised airtel) is an Indian global telecommunications services
company based in New Delhi, India. It operates in 20 countries across South Asia and Africa. Airtel provides GSM, 3G, 4G
LTE mobile services, fixed line broadband and voice services depending upon the country of operation. Airtel had also
rolled out its VoLTE technology across all Indian telecom circles except Jammu and Kashmir and Andaman and is likely to
launch in these circles soon. It is the second largest mobile network operator in India and the third largest mobile network
operator in the world with over 438.04 million subscribers. Airtel was named India's second most valuable brand in the
first ever Brandz ranking by Millward Brown and WPP plc.
Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except marketing,
sales and finance and building the 'minutes factory' model of low cost and high volumes. The strategy has since been
adopted by several operators. Airtel's equipment is provided and maintained by Ericsson, Huawei, and Nokia
Networks whereas IT support is provided by IBM. The transmission towers are maintained by subsidiaries and joint
venture companies of Bharti including Bharti Infratel and Indus Towers in India. Ericsson agreed for the first time to be
paid by the minute for installation and maintenance of their equipment rather than being paid up front, which allowed
Airtel to provide low call rates of ₹1 (1.4¢ US)/minute.
 ANNUAL REPORT Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Net Sales/Income from operations 53,663.00 62,276.30 60,300.30 55,496.40 49,918.50

Other Operating Income -- -- -- -- --

Total Income From Operations 53,663.00 62,276.30 60,300.30 55,496.40 49,918.50

EXPENDITURE

Consumption of Raw Materials -- -- -- -- --

Purchase of Traded Goods -- -- -- 7.60 2.20

Increase/Decrease in Stocks -- -- -- -- --

Power & Fuel -- -- -- 4,115.10 4,169.70

Employees Cost 1,720.90 1,738.50 1,864.80 1,691.50 1,648.10

Depreciation 13,048.60 12,203.40 9,575.30 7,559.70 7,231.30

Excise Duty -- -- -- -- --

Admin. And Selling Expenses 3,051.90 -- -- -- --

R & D Expenses -- -- -- -- --

Provisions And Contingencies -- -- -- -- --

Exp. Capitalised -- -- -- -- --

Other Expenses 31,085.30 36,612.50 36,022.40 30,251.10 27,799.70

P/L Before Other Inc. , Int., Excpt. Items & Tax 4,756.30 11,721.90 12,837.80 11,871.40 9,067.50

Other Income 235.60 184.30 172.90 5,193.00 853.40

P/L Before Int., Excpt. Items & Tax 4,991.90 11,906.20 13,010.70 17,064.40 9,920.90

Interest 5,069.00 3,144.90 2,076.40 1,409.10 1,336.40

P/L Before Exceptional Items & Tax -77.10 8,761.30 10,934.30 15,655.30 8,584.50

Exceptional Items -604.10 -17,270.80 -679.90 -- -207.10

P/L Before Tax -681.20 -8,509.50 10,254.40 15,655.30 8,377.40

Tax -760.40 1,416.10 2,474.10 2,454.80 1,777.20

P/L After Tax from Ordinary Activities 79.20 -9,925.60 7,780.30 13,200.50 6,600.20

Prior Year Adjustments -- -- -- -- --

Extra Ordinary Items -- -- -- -- --

Net Profit/(Loss) For the Period 79.20 -9,925.60 7,780.30 13,200.50 6,600.20

Equity Share Capital 1,998.70 1,998.70 1,998.70 1,998.70 1,998.70

Reserves Excluding Revaluation Reserves 100,862.20 99,208.60 109,730.40 76,272.10 64,727.20

Equity Dividend Rate (%) 106.80 20.00 -- 77.00 36.00

 RATIO ANALYSIS

MAR17 MAR16 MAR15 MAR14

Profitability Ratios MAR18
Operating Profit Margin(%) 33.17 38.04 37.00 35.01 32.65

Profit Before Interest And Tax Margin(%) 8.82 18.39 21.06 19.56 17.85

Gross Profit Margin(%) 8.86 18.44 21.12 21.39 18.16

Cash Profit Margin(%) 25.47 31.29 29.82 34.20 27.65
Adjusted Cash Margin(%) 25.47 31.29 29.82 34.20 27.65
Net Profit Margin(%) 0.14 -15.93 12.90 23.78 13.22

Adjusted Net Profit Margin(%) 0.14 -15.89 12.86 21.75 12.99

Return On Capital Employed(%) 3.01 7.38 8.38 17.32 13.18

Return On Net Worth(%) 0.07 -9.80 6.96 16.86 9.89

Adjusted Return on Net Worth(%) 0.66 7.25 7.57 16.86 10.20

Return on Assets Excluding Revaluations 257.32 253.18 279.50 195.80 166.92

Return on Assets Including Revaluations 257.32 253.18 279.50 195.81 166.93

Return on Long Term Funds(%) 3.17 7.70 8.42 17.43 13.40

Liquidity And Solvency Ratios

Current Ratio 0.60 0.61 0.61 0.73 0.93
Quick Ratio 0.69 0.71 0.55 0.75 0.98
Debt Equity Ratio 0.61 0.56 0.38 0.26 0.13

Long Term Debt Equity Ratio 0.53 0.50 0.37 0.25 0.11
MERGERS
• Zain
• In Jun 2010, Bharti struck a deal to buy Zain's mobile operations in 15 African countries, in India's second
biggest overseas acquisition after Tata Steel's $13 billion buy of Corus in 2007. Bharti Airtel completed its
$10.7 billion acquisition of African operations from Kuwaiti firm on 8 June 2010, making Airtel the world's
fifth largest wireless carrier by subscriber base. Airtel has reported that its revenues for the fourth quarter of
2010 grew by 53% to US$3.2 billion compared to the previous year, newly acquired Zain Africa division
contributed US$911 million to the total. However, net profits dropped by 41% from US$470 million in 2009
to US$291 million 2010 due to a US$188 million increase in radio spectrum charges in India and an increase
of US$106 million in debt interest.
• Warid Bangladesh and Robi
• In 2010, Warid Telecom sold a majority 70.90% stake in the company to Bharti Airtel for US$300 million. The
Bangladesh Telecommunication Regulatory Commission approved the deal on 4 January 2010. Bharti Airtel
Limited took management control of the company and its board, and rebranded the company's services
under its own "airtel" brand from 20 December 2010. Warid Telecom sold its remaining 30% share to Bharti
Airtel's Singapore-based concern Bharti Airtel Holdings Pte Limited in March 2013.
• On 16 November 2016, airtel Bangladesh was merged into Robi as a product brand of Robi, where Robi
Axiata Limited is the licensee of airtel brand in Bangladesh. Robi is a joint venture between Axiata Group
holding 68.7%, Bharti Airtel holding 25%, and NTT DoCoMo Inc. holding 6.3%.
• Telecom Seychelles
• On 11 August 2010, Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles for US$62 million taking its global presence to 19
countries. Telecom Seychelles began operations in 1998 and operates 3G, Fixed Line, ship to shore services satellite telephony, among value added
services like VSAT and Gateways for International Traffic across the Seychelles under the Airtel brand. The company has over 57% share of the mobile
market of Seychelles. Airtel announced plans to invest US$10 million in its fixed and mobile telecoms network in the Seychelles over three years, whilst
also participating in the Seychelles East Africa submarine cable (SEAS) project. The US$34 million SEAS project is aimed at improving the Seychelles'
global connectivity by building a 2,000 km undersea high-speed link to Dar es Salaam in Tanzania.
• Augere Wireless
• Airtel purchased Augere Wireless Broadband India Private Limited, a company that owned 4G spectrum in the Chhattisgarh-Madhya Pradesh circle for
an undisclosed sum in December 2015. The Economic Times estimated Augere's spectrum to be worth ₹1.5 billion (US$21 million). On 16 February 2017,
Airtel announced that the merger of Augere Wireless into Bharti Airtel Limited had been completed.
• Telenor India
• On 2 January 2017, The Economic Times reported that Airtel had entered into discussions with Telenor India to acquire the latter. On 23 February 2017,
Airtel announced that it had entered into a definitive agreement to acquire Telenor. As part of the deal, Airtel will acquire Telenor India's assets and
customers in all seven telecom circles that the latter operates in - Andhra Pradesh, Bihar, Maharashtra, Gujarat, Uttar Pradesh (East), Uttar Pradesh
(West) and Assam. Airtel will gain 43.4 MHz spectrum in the 1800 MHz band from the Telenor acquisition. Business Standard reported that it was a no-
cash deal, but would cost Airtel ₹1,600 crore over a 10-year period due to spectrum licence payments.
• Tikona 4G spectrum
• On 23 March 2017, Economic Times reported that Airtel announced that it had acquired Tikona Digital Networks Pvt. Ltd to purchase the latter's 4G
spectrum for approximately ₹1,600 crore. The deal also includes Tikona's 350 cellular sites in 5 circles. Tikona had purchased 20 MHz of 4G spectrum in
the 2,300 MHz band in the 2010 auctions in Gujarat, Himachal Pradesh, Uttar Pradesh (East), Uttar Pradesh (West) and Rajasthan for ₹1,058 crore. Prior
to the deal, Airtel did not hold any spectrum in the 2300 MHz band in UP (East), UP (West) and Rajasthan, and held 10 MHz each in Gujarat and
Himachal Pradesh.
• Tikona was founded in 2008 by former Reliance Communications executives Rajesh Tiwari and Prakash Bajpai. Its other investors include Goldman
Sachs, Oak Capital, IFC and Everstone Capital. Tikona will retain its home broadband wireless business. Rajesh Tiwari, one of the cofounders of Tikona,
though sought to put a spanner in the deal, slapping a legal notice against both the companies for not providing details of how the proceeds will be split
among shareholders.
JIO
• Reliance Jio Infocomm Limited,Jio, is an Indian mobile network operator. Owned by Reliance Industries and
headquartered in Navi Mumbai, Maharashtra, it operates a national LTE network with coverage across all
22 telecom circles. Jio does not offer 2G or 3G service, and instead uses voice over LTE to provide voice
service on its network.
• Jio soft launched on 27 December 2015 (the eve of what would have been the 83rd birthday of Reliance
Industries founder Dhirubhai Ambani), with a beta for partners and employees, and became publicly
available on 5 September 2016. As of 31 December 2018, it is the third largest mobile network operator in
India and the nineth largest mobile network operator in the world with over 280.117 million subscribers. On
5 July 2018, fixed line broadband service named Gigafiber, was launched by the Reliance Industries Limited's
chairman Mukesh Ambani, during the company's Annual General Meeting
• In June 2010, Reliance Industries (RIL) bought a 95% stake in Infotel Broadband Services Limited (IBSL)
for ₹4,800 crore (US$670 million). Although unlisted, IBSL was the only company that won broadband
spectrum in all 22 circles in India in the 4G auction that took place earlier that year. Later continuing as RIL's
telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL)
in January 2013.
• In June 2015, Jio announced that it would start its operations all over the country by the end of
2015. However, four months later in October, the company's spokesmen sent out a press release stating that
the launch was postponed to the first quarter of the financial year 2016–2017.
FINANCIAL ANALYSIS
 RATIO ANALYSIS

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 6.00 11.00 10.50 10.00 9.50

Operating Profit Per Share (Rs) 81.68 133.04 123.87 97.67 95.54

Net Operating Profit Per Share (Rs) 457.87 744.40 719.54 1,017.02 1,207.08
Profitability Ratios

Operating Profit Margin(%) 17.83 17.87 17.21 9.60 7.91

Profit Before Interest And Tax Margin(%) 14.13 13.87 12.69 6.84 5.53

Gross Profit Margin(%) 14.53 14.37 13.11 7.02 5.66

Cash Profit Margin(%) 14.48 15.90 15.36 9.23 7.71

Adjusted Cash Margin(%) 14.48 15.90 15.36 9.23 7.71

Net Profit Margin(%) 11.58 12.98 11.75 6.90 5.63

Adjusted Net Profit Margin(%) 11.26 12.53 11.38 6.72 5.50

Return On Capital Employed(%) 12.24 11.16 11.47 10.42 10.97

Return On Net Worth(%) 10.68 10.89 11.41 10.51 11.15

Adjusted Return on Net Worth(%) 10.68 10.89 11.41 10.51 11.15

Return on Assets Excluding Revaluations 496.68 886.76 741.20 668.05 609.78

Return on Assets Including Revaluations 496.68 886.76 741.20 668.05 609.78

Return on Long Term Funds(%) 12.71 11.85 11.99 10.88 11.94

Liquidity And Solvency Ratios

Current Ratio 0.41 0.35 0.47 0.89 1.11

Quick Ratio 0.25 0.21 0.31 0.63 1.03

Debt Equity Ratio 0.31 0.35 0.38 0.41 0.43

Long Term Debt Equity Ratio 0.26 0.27 0.32 0.35 0.32

Debt Coverage Ratios

Interest Cover 10.82 15.98 15.55 13.45 9.68

Total Debt to Owners Fund 0.31 0.35 0.38 0.41 0.43

Financial Charges Coverage Ratio 12.88 19.08 19.45 17.04 12.42

Financial Charges Coverage Ratio Post Tax 10.28 15.65 16.07 14.18 10.60
MERGERS
• 66% stake in DEN for Rs 2,290 crore: For Jio GigaFiber- In its most recent acquisition, Reliance
Industries picked up the majority stake in this company to bolster its Jio GigaFiber’s operations.
• 51.3% stake in Hathway for Rs 2,940 crore: For Jio GigaFiber-Like DEN, Hathway too will help the
company to reach out to a wider audience for its Jio GigaFiber, which was launched recently.
• 25% stake in Balaji Telefilms for Rs 413 crore: For content creation and JioCinema, JioTV-Keeping
in mind its properties like JioTV and JioCinema, the company picked up stake in this leading
production house. Balaji produces films, TV shows and also has an OTT content platform called
ALT Balaji.
• Acquired 73% stake in Embibe: For online education-Embibe is an AI-based education platform
that uses data analytics for personalised learning to help students. Reliance bought a stake in the
company earlier this year.
• Acquired Saavn for Rs 670 crore: For online music streaming-To make its presence felt in the
online music streaming business, Saavn was one of the first and biggest acquisition made by
Reliance Jio.
TELENOR
• Telenor (India) Communications Private Limited, formerly known as Uninor, was
an Indian mobile network operator. The company was a wholly owned subsidiary
of Norwegian telecommunications company Telenor Group. In February 2017, Telenor
Group announced merging the India business with Bharti Airtel in a no-cash deal with
liability of Airtel to take over the outstanding spectrum payments of Rs 1,650 crore post
necessary regulatory approvals.
• The company Unitech Wireless Limited, a subsidiary of Unitech Group, was incorporated
in 2008. The same year, the company was awarded wireless services licences for all
22 telecom circles. Subsequently, Unitech Group and Telenor Group agreed to enter
a joint venture where Telenor would inject fresh equity investments of ₹61.35 billion into
Unitech Wireless to take a majority stake in the company. This was operating capital
invested directly in Unitech Wireless by Telenor Group. Telenor Group conducted these
investments in four tranches, subsequent to approvals from the Foreign Investment
Promotion Board (FIPB) and the Cabinet Committee of Economic Affairs (CCEA) took
67.25% ownership of Unitech Wireless. In September 2009, Unitech Wireless announced
its brand name as Uninor.
 FINANCIAL ANALYSIS

Annual Income Statement Data

Actuals in M NOK Estimates in M NOK

Fiscal Period December 2016 2017 2018 2019 2020 2021

Sales 131 427 124 756 110 362 112 089 112 897 113 297

EBITDA 46 483 48 992 45 452 45 556 46 570 47 797

Operating profit (EBIT) 26 433 27 735 25 348 27 241 28 266 29 299

Pre-Tax Profit (EBT) 11 731 19 302 18 848 25 721 26 635 26 923

Net income 2 832 11 983 14 731 14 761 15 008 15 175

P/E ratio 68,3 22,0 16,8 17,1 16,5 15,8

EPS ( NOK ) 1,89 7,99 10,0 10,0 10,4 10,9

Dividend per Share ( NOK ) 7,80 8,10 8,40 8,73 9,06 9,51

Yield 6,05% 4,60% 5,01% 5,08% 5,27% 5,53%

Reference price ( NOK ) 129 175.9 167.5 171.95 171.95 171.95

MERGERS

• Telecom major Bharti Airtel Ltd. today completed the merger of the Indian arm of Telenor Communications
with itself. As part of the deal, the Sunil Bharti Mittal-led company will also take over the outstanding
spectrum payments and other contractual commitments such as tower lease agreements of Telenor India, it
said in a statement. Airtel will now begin
• integrating Telenor India’s operations across seven circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP
(East), UP (West) and Assam, the statement added.
• The deal will enable Airtel to further bolster its spectrum footprint in these seven circles, with the addition
of 43.4 MHz spectrum in the 1800 MHz band – widely known as 2G spectrum, but it is now being used for
4G services as well.
• This merger comes at time when a tariff war unleashed by Mukesh Ambani’s Reliance Jio Infocomm Ltd. has
triggered a consolidation in the world’s second largest telecom market, forcing incumbents to either match
its prices or exit the market completely.
• Following the deal, Airtel’s total mobile customer base in India now stands at over 330 million. “The
acquisition consolidates our market leadership, further strengthens our network portfolio in key markets and
will add to shareholder value,” Gopal Vittal, managing director and chief executive office-India and South
Asia of Bharti Airtel, said in the statement.
• The two companies, in February 2017, had signed an agreement under which the Sunil Mittal-led operator
was to acquire Telenor India's operations in seven circles. Bharti Airtel received shareholders’ approval for
the merger in September last year.
•
THANK YOU