Solid revenue growth for Telenor in 2Q11 as subscriber numbers increase

21 Jul 2011

Norwegian telecoms group Telenor has posted an organic revenue growth of 7% in the second quarter of 2011, with turnover in the three months to 30 June 2011 standing at NOK24.36 billion (USD4.42 billion). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the three-month period was NOK7.46 billion, up from NOK7.00 billion a year previously, while operating cash flow stood at NOK5 billion. Commenting on the results, Jon Fredrik Baksaas, Telenor president and CEO, noted: ‘Halfway into 2011, we have captured growth opportunities and delivered another quarter with 7% organic revenue growth combined with steady customer growth and healthy margins. The Telenor Group achieved an operating cash flow margin of 20% in a period with heavy investments in networks to meet the strong growth in data.’

In the quarter ending 30 June 2011 Telenor said that it had added almost eight million mobile subscribers across its regions of operation, driven predominantly by growth at its Asian subsidiaries. The group’s operations in Asia reported a 21% year-on-year increase in organic revenue against 2Q 2010, and across Bangladesh, Malaysia, Thailand and Pakistan it added over 3.6 million net new wireless customers in the three-months to end-June 2011. India meanwhile was responsible for the group’s largest subscriber increase, with Uninor – Telenor’s joint venture with Indian real estate developer Unitech – adding almost four million subscribers in the second quarter of 2011. Despite continued investigation into matters relating 2G spectrum by the Indian authorities, Telenor noted that its licences in the country were ‘awarded prior to Telenor’s entry to India and [it has] invested according to Indian authorities’ guidelines and formal approvals.’ As a result, the group said that it did not expect the outcome of the legal process to affect its business negatively.

Norway, Telenor Group