Japan Telecom Holdings Co. sank into the red in the fiscal first half of 2003 due to share evaluation losses related to the sale of its land-line telephone service unit Japan Telecom Co.
Japan Telecom Holdings posted a group net loss of 125.04 billion yen in the April-September period, compared with a 43.52 billion yen net profit in the same period last year, it said Tuesday. Japan Telecom Holdings is a subsidiary of Britain's Vodafone Group PLC.
The holding company wrote down about 161 billion yen in special losses stemming from the revaluation of stocks of Japan Telecom Co., because its book value was higher than the purchase price paid by U.S. investment fund Ripplewood Holdings LLC., said William Morrow, president of Japan Telecom Holdings.
And because the land-line firm is excluded from its group in the second half, Japan Telecom Holdings now expects a net loss of 104 billion yen for the full business year to March 31. In May, it forecast a 62 billion yen net profit.
Ripplewood bought Japan Telecom for 261 billion yen. The acquisition was legally completed Nov. 14.
Japan Telecom Holdings reported an operating profit of 125.32 billion yen for the April-September period, down 12.2 percent from a year earlier.