Nigeria’s Starcomms reports heavy losses

Nigerian telecommunications company Starcomms declared after tax net losses of US$ 54 million for the year ended 31 December 2008. The results represent a sharp decline compared to after tax profits of US$7.8 million recorded in 2007.

The company has also released its first quarter 2009 result, showing further losses US$24 million. The market did not respond well to the results with many investors selling of Starcomms stock.

“In spite of the fact the telecommunications sector in Nigeria is one of the fastest growing in the world, some companies in this sector seem to be having a hard time,” a Nigeria Stock Exchange analyst said.

Starcomms set a record last year as the first ever telecommunication company to be listed on the trading floor of the Nigerian stock exchange and is currently the fourth largest telecommunications operator in Nigeria.