Telenor reports 44% hike in quarterly profits

8 May 2003

Norway’s dominant telco Telenor [TEL.OL] has reported a 44% rise in profit for the three months to 31 March 2003 and confidently predicted a ‘significant improvement’ in full year net income. The company said EBITDA increased to NOK4.18 billion from NOK2.9 billion in the corresponding period of 2002, beating analysts’ consensus estimates of around NOK3.8 billion. The strong performance was attributed in part to cost savings and growth from each of its core business segments – mobile, fixed line and broadband – which all improved on analyst forecasts. Telenor said that revenues for the period rose to NOK12.61 billion from NOK11.56 billion, slightly shy of the predicted NOK12.93 forecast, but that full-year revenue growth was still likely to fall within the lower end of the 7%-10% range given in February. Moreover, the telco’s chief executive, Jon Fredrik Baksaas said he was anticipating strong growth in EBITDA and operating profit for the full year and expects continued growth from international operations to buoy its year-end figures.

Norway