Telenor’s 2Q Profit Rises on Subscriber Growth
Fornebu, Norway, July 24, 2013 — Telenor has reported a return to revenue growth after strong performances in India, Thailand and Sweden. In the second quarter of 2013 Telenor Group reported revenues of US$4.37 billion (NOK 25.7 billion), representing an organic revenue growth of 2 percent. The company saw zero organic revenue growth in the first quarter.
Earnings before interest, tax, depreciation and amortization (EBITDA) climbed 11 percent over the same period last year to US$1.5 billion (NOK 8.86 billion). The EBITDA margin, expressed as a percentage of total revenue, was steady on the previous quarter at 34 percent.
Profits before tax were up 35 percent year on year to US$0.9 billion (NOK 5.3 billion), and net income grew 57 percent to US$543.5 million (NOK3.2 billion). Earnings per share were also up sharply from US 22 cents to US 36 cents (NOK1.31 to NOK2.13).
“During the second quarter, Telenor gained more than five million new customers driven by strong growth in Asia. In Thailand, dtac’s network investments and high customer uptake is resulting in solid revenue growth as our customers embrace new services enabled through 3G. In Norway and Sweden, we saw subscription growth picking up in the consumer segment as a result of new data centric offerings,” said Jon Fredrik Baksaas, President and CEO.
With the Group’s organic revenue growth improved from the first quarter combined with stronger margins, Baksaas said the company was maintaining its outlook for this year.
Telenor Satellite Broadcasting (TSBc), meanwhile, reported a 64 percent in revenue growth to US$41.8 million (NOK246 million) but EBITDA decreased due to lower revenues and higher operating cost compared to the second quarter last year. The company said revenues were affected by retirement of Thor II satellite in January 2013.
But Telenor Satellite posted an increased household reach with the orbital slot 1˚West exceeding 8.8 million homes penetration in Central and Eastern Europe.
The company also continued to enjoy strong and stable DTH subscriber growth for its DTH operator UPC. It secured new maritime and energy business customers utilizing TSBc’s THOR fleet for high powered European coverage, specifically in the North Sea and Mediterranean’s busy shipping lanes.
The Telenor Groups also revealed new areas of business operation. “Telenor was recently declared a successful applicant for a telecommunications licence in Myanmar, and we are currently awaiting the telecom law and final licence conditions from the local authorities. Our acquisition of Bulgaria’s second largest telecom operator Globul has been approved by the EU Commission, and I am looking forward to welcoming our new colleagues in a region well known to Telenor,’’ added Baksaas.
“Telenor’s operational performance and strong financial position enables healthy shareholder remuneration. I am pleased to announce that we are initiating another share buyback programme for approximately 1 percent of the outstanding shares, to be completed before the AGM in 2014,” said Baksaas.
Related Articles:
