Telenor again beats expectations with 41% EBITDA growth

21 Jul 2006

Norwegian telecoms group Telenor has posted a 41% jump in second quarter earnings on the back of strong overseas mobile services growth. EBITDA rose to NOK7.93 billion (USD1.25 billion) in the three months to 30 June, up from NOK5.63 billion a year earlier, on the back of a 37% hike in revenues, up to NOK22.6 billion. Underlying revenue growth was 12% and the EBITDA margin increased from 34% to 35%. Profit before tax was NOK3.9 billion. Telenor’s mobile subscriptions increased six million in the period, reaching 96 million. Telenor President and CEO Jon Fredrik Baksaas singled out the group’s Bangladesh subsidiary GrameenPhone for special praise. ‘We are delivering yet another solid quarter, with high growth in revenues and increased EBITDA margin. We are very satisfied that several of our mobile operations are performing so well in their markets. In particular, GrameenPhone improved its market position by increasing its customer base by more than 30% during this quarter alone,’ he said in a statement. GrameenPhone added more than two million subscribers in the second quarter, taking its base to nearly 8.5 million and a market share of 63%. Telenor has stuck to its previous full-year earnings guidance, forecasting its revenues to grow around 30% this year and EBITDA margin of more than 34%.

Norway, GrameenPhone (GP), Telenor Group