Telenor has posted lower than expected fourth quarter earnings as a result of a lacklustre performance from its domestic mobile operations. ‘The current cost base is not sustainable in today’s competitive market, thus cost efficiency measures will be implemented during 2008,’ said chief executive Jon Fredrik Baksaas. In the fourth quarter ended 31 December 2007, the Norwegian telco posted pre-tax profits of NOK7.24 billion (USD1.31 billion), up from NOK5.9 billion in the year ago period. EBITDA stood at NOK7.25 billion, down from NOK8.19 billion.
For the full year 2007, Telenor reported revenues of NOK92.47 billion (NOK105.02 billion including Kyivstar, its Ukrainian subsidiary which was deconsolidated in late 2006 but which since November 2007 has resumed its reporting to Telenor), compared to NOK91.08 in 2006. Net income rose from NOK18.5 billion to NOK19.2 billion over the same timeframe.