Loss of millions on foreign investments UTS

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UTS is active in Surinam since the end of 2007. Up to 2009, UTS in Surinam incurred a loss of 63 million guilders. There was a question of a 15-million loss in the first year, 2007. In 2008, this increased to 26 million and subsequently decreased to 22 million guilders last year. According to UTS-director Paul de Geus, expectations are that this year’s loss will be much lower and subsequently a break-even in 2011. The high loss-figures were also caused by the high investments that were required in the South American country. "We’ve actually been active in Surinam for four years. Normally, one expects to see some return from investments only in five years’ time. We expect to break even next year for the first time." Looking back on the investments on St. Kitts, where UTS has been active since 2005 in a joint venture, the UTS-director indicates he would not have taken this decision if he were handling this at that time. "It’s a market of 40,000 people. Two large telecom companies, namely Digicel and Cable & Wireless, were already active there. As we no longer see the potential, we decided to withdraw from this market, but we will do this properly. We have a partner on St. Kitts, who owns 40 percent. We are busy selling our shares." UTS expects that the transactions will be finalized before the end of the year. UTS is active in the Netherlands with D-UTS since 2004. De Geus indicates that also this company suffered losses. However, he was not able to provide exact figures. The overdraft compels the company to implement stringent restructurings. According to De Geus, these have been implemented in the meantime. Expectations are high because De Geus thinks the Dutch branch of UTS will be able to operate break even this year.