Starcmms losses N17.6billion In One Year

Starcomms PLC, a CDMA telecom operator in Nigeria has posted a net loss of 17.6 billion Naira for 2011 financial year.

This figure was handed to the shareholders of the company in Abuja at the 14th Annual General Meeting (AGM) of the company.

Also in the year under review, starcomms’ total current liabilities exceeded its current assets by N27.7 billion.

Following the loss, serious concern is being raised about the survival of the company in the face of its financial misfortune; even as shareholders express worry that the figure for the 2012 financial year, which is not ready, may be worst.

The interim Chief Executive Officer of the starcomms, Olusola Oladokun lamented the company’s poor performance saying it was due to the reduction in voice revenues and limited opportunities to grow data revenues due to spectrum congestion.

Some experts in the telecoms industry believe that company’s poor financial status is due to the thriving GSM technology in Nigeria as against the CDMA technology.

Verizon wireless, a leading telecommunication company in United States largely uses CDMA technology, which stands for Code Division Multiple Access (CDMA).

Meanwhile our Correspondent reports that despite the poor performance, Starcomms shareholders in a voice vote returned some of the company’s directors amidst rowdy and stormy session.

December 29, 2012