Telenor raises FY guidance on the back of strong 3Q

26 Oct 2006

Norwegian telecoms group Telenor has reported a 42.2% rise in third quarter EBITDA, up to NOK9.07 billion (USD1.37 billion), and raised its guidance for revenues and profitability in 2006. In the three months ended 30 September Telenor posted a 35.3% rise in revenues, up to NOK23.9 billion, whilst operating profits rose 52.5% to NOK5.3 billion. Telenor has revised its full year revenue growth forecast up to 35%, from 30% previously; it expects the EBITDA margin to be 36%, up from the 34% originally forecast.

All three of Telenor’s mobile operators in Scandinavia showed solid growth in revenues and margins, whilst Kyivstar in the Ukraine stood out, posting a 48% hike in revenues and an EBITDA margin of 60%. The rise helped offset continuing declines from Telenor’s domestic fixed line business, where turnover fell 6.5%. At the end of September the group’s mobile operations served 105 million subscribers, including 2.3 million customers of Telenor Serbia (formerly Mobi 063), which was acquired on 1 September. During the quarter, Telenor’s xDSL subscribers in Scandinavia reached 1.1 million, including 542,000 in Norway.

Meanwhile, Telenor has agreed to sell its non-core satellite business to private equity firm Apax Partners France for USD400 million. The deal is not expected to affect Telenor Satellite Services customers.

Norway, Telenor Group