Logo of Phnom Penh Post newspaper Phnom Penh Post - Star-Cell value sees $100m-plus writedown

Star-Cell value sees $100m-plus writedown

Star-Cell value sees $100m-plus writedown

THE owner of Cambodian mobile provider Star-Cell announced yesterday it had written down the firm’s value by more than US$100 million and had “no goodwill” related to its operations in the Kingdom.

In a mobile market that it said was characterised by fierce competition and high churn rates, Star-Cell’s Sweden-based owner, TeliaSonera AB, said it was made clear in the first quarter of 2010 that its “ambition related to the Cambodian market had to be reviewed”.

After reassessing its worth in the most recent quarter, the company announced it had reduced the book value of Star-Cell by 678 million kronor (US$103.4 million).

“After the writedown there is no goodwill related to the Cambodian operations as per September 30, 2010,” it said in a third-quarter statement released yesterday.

Goodwill is generally defined as the value of a firm beyond its tangible assets. This could include factors such as the value of a brand name or the company’s reputation.

After the writedown there is no goodwill related to the Cambodian operations.

Star-Cell launched in Cambodia in October 2007, according to the GSM Association, and was acquired in 2008 by TeliaSonera along with an 80 percent stake in a company called Spice Nepal.
The move marked TeliaSonera’s entry into one of the world’s most crowded markets, which many believe is now ripe for consolidation.

Although nine companies operate in Cambodia, experts have said the market is only large enough to support four or five.

TeliaSonera said yesterday Star-Cell was positioned seventh in the Kingdom’s market as of September 30, with 503,000 subscribers for the third quarter. The report did not detail on what basis subscribers were measured.

This marked a drop in market position when compared to TeliaSonera’s 2009 annual report, which claimed that Star-Cell was Cambodia’s fourth-largest operator.

The report did not provide details of Star-Cell’s future operations or separate financial statements for the company. Cambodia-based officials did not return a request for further comment yesterday.

MOST VIEWED

  • Ethnic group ‘disappointed’ to be denied French visas to attend court

    Eleven people at the centre of a case involving seven indigenous Bunong villages in Mondulkiri province pursuing legal action in France have expressed disappointment after the French embassy in Phnom Penh denied their visa applications to attend court. A press release said the 11 included a

  • Cambodia nabs 12th place in best retirement destinations

    Cambodia is an expatriate hotspot for those dreaming of living a more luxurious lifestyle at an affordable cost, according to International Living’s Annual Global Retirement Index 2019. For the fourth year in a row, Cambodia took the top spot in the Cost of Living category.

  • EU starts EBA withdrawal

    The EU on Monday announced that it has begun the 18-month process of withdrawing the Kingdom’s access to its preferential Everything But Arms (EBA) agreement over “a deterioration of democracy [and] respect for human rights”. However, the Garment Manufacturers Association of Cambodia (GMAC) said

  • PM: War result of foreign meddling

    Prime Minister Hun Sen said on Sunday that Cambodia’s recent history of conflict was caused by foreign interference. “The wars that happened were caused by provocation, incitement, support, smearing and interference from foreign powers, and the group of ignorant people who pushed Cambodia to