Telenor profits up 14% in 2005

16 Feb 2006

Norwegian telecoms group Telenor has posted a 14.1% hike in net profits for 2005. Profit after taxes and minority interests reached NOK7 billion (USD1.02 billion) on the back of a 13.8% increase in revenues to NOK68.9 billion; EBITDA rose to NOK24.1 billion giving an EBITDA margin before other income and expenses of 34.9%, down from 35.3% in 2004.

The results were propelled by significant growth at Telenor’s mobile businesses: the group’s total number of mobile subscriptions increased by 8.2 million in the fourth quarter of 2005, reaching 82.7 million, of which 42.2 million were subscribers of its consolidated operations. Telenor estimated that its market share in Norway remained steady at 56%, whilst Kyivstar in Ukraine and GrameenPhone in Bangladesh reported record growth in the fourth quarter, as revenues rose 102% and 49% respectively. At the end of the year, its youngest cellco Telenor Pakistan had 1.9 million subscribers, increasing its estimated market share to 9%. Telenor’s domestic fixed line business continued to see strong broadband growth to offset a steady fall in its traditional telephony business. During the quarter, its number of xDSL subscriptions in Norway increased by 31,000 to 475,000. For 2006, the company predicts 25% to 30% growth in revenues, driven by mobile expansion, with an EBITDA margin of around 33%.

Norway, Telenor Group, Telenor Pakistan