Revenue growth for Telenor in 4Q and FY 2010

8 Feb 2011

Norwegian telecoms giant Telenor has revealed its fourth quarter and full year results for the period ended 31 December 2010, posting an organic revenue growth of 8% year-on-year on the last three months of the year. In its fourth fiscal quarter Telenor generated turnover of NOK24.86 billion (USD2.71 billion), up from NOK22.42 billion in the same period a year earlier, while full year revenues for 2010 stood at NOK94.84 billion, a 4.5% increase against FY2009. The group pointed to its Asian operations as a particular source of group revenue growth, with its units in the region – DTAC (Thailand), DiGi (Malaysia), GrameenPhone (Bangladesh) and Telenor Pakistan – reporting an increase in turnover of 13% y-o-y in the fourth quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile were NOK7.18 billion in 4Q10, up from NOK6.93 billion in the corresponding quarter in 2009, although in FY2010 EBITDA totalled NOK29.22 billion, representing a 4.7% y-o-y decline.

Looking forward Telenor has said that it expects to report revenue growth of around 5% in 2011, while it has said that its EBITDA margin in the coming year should be approximately 31%. The company also outlined its operational priorities for 2011, which it said included: the modernisation of its mobile networks; increasing revenues and improving business processes in India; and capturing growth from Asia and mobile data.

In operational terms, Telenor’s largest subsidiary in terms of mobile subscribers at the end of 2010 remained its Bangladeshi unit, which at that date had 29.97 million wireless customers, up from 23.26 million a year earlier. Telenor Pakistan was the group’s second largest mobile unit by subscribers, with 24.69 million at end-December 2010, while Uninor, the group’s Indian subsidiary added the most customers over the last three months of the year, increasing its customer base by more than 4.3 million to reach 12.26 million.

Norway, Telenor Group