Telenor ups forecasts as Asian subsidiaries improve performance

21 Jul 2010

In reporting its fiscal results for the three months ended 30 June 2010 Norwegian telecoms group Telenor said that increased data usage in Norway and the recovery of Asian economies had helped drive growth. In the company’s second financial quarter it posted a 5% organic revenue growth, generating turnover of NOK25.177 billion (USD4 billion) for the period, with the group’s Asian subsidiaries leading the way, reporting 13% organic revenue growth. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile fell to NOK6.9 billion, down from NOK7.9 billion in the same period a year earlier. On the back of the improved performance in Asia, Telenor also nudged up its guidance for FY2010, stating that it expects organic revenue growth for the year of between 3% and 5%, up from its previous forecast of growth in ‘the low single digits’. Net profit in 2Q 2010 meanwhile surged to NOK9.5 billion, up from NOK1.4 billion a year earlier, including a one-off NOK6.5 billion gain from the merger of Telenor’s shares in Russia’s Vimpelcom and Ukraine’s Kyivstar into a new vehicle, Vimpelcom Ltd, jointly owned with Russia’s Alfa Group.

Norway, Telenor Group