Telenor beats expectations with EBITDA rise of 55%

4 May 2006

Norwegian telecoms group Telenor beat analysts’ expectations to post a 55% rise in first quarter EBITDA, up to NOK7.88 billion (USD1.28 billion), on the back of strong revenue growth at its mobile operations. In the three months to the end of March 2006 Telenor’s group revenues grew 43% year-on-year to NOK21.9 billion. Net income was NOK3.69 billion, up 115%. ‘All our mobile operations successfully defended or improved their market positions,’ Chief Executive Jon Fredrik Baksaas said in a statement. At the end of March 2006, the companies in which Telenor had ownership stakes had 90 million mobile subscribers, an increase of seven million from the start of the year. ‘Strong growth in mobile subscriptions during 2005 gives Telenor a solid foundation for further growth in revenues,’ he said. ‘We expect a growth in reported revenues of around 30% (in 2006).’ Capital expenditure in 2006 will be more than 20% of revenues, he added.

Norway, Telenor Group