Telenor posts slump in net profit in 2Q

23 Jul 2009

On the back of a 61.1% slump in net profit in its second fiscal quarter, Norwegian telecom group Telenor has revised its full-year revenue guidance. For the three months ended 30 June 2009 Telenor posted a net profit of NOK1.38 billion (USD212.8 million), down from NOK3.54 billion in the same period a year earlier. The drastic drop was partially attributed to a fall in operating profit as a result of a NOK1.97 billion goodwill impairment at the group’s Serbian subsidiary. While revenue for the quarter remained relatively flat, falling just 0.5% to NOK26.9 billion, Telenor said that ‘our estimate at this point is that organic revenues for 2009 will be in line with 2008, however on the negative side.’ Earnings before interest, tax, depreciation and amortisation (EBITDA) were NOK9.33 billion, almost unchanged against the same period a year earlier.

At the end of June 2009 the Telenor group had 168 million subscribers worldwide.

Norway, Telenor Group