Telenor unveils solid third quarter financials; updates FY11 guidance

26 Oct 2011

Norwegian telecoms group Telenor has announced its financial results for the three months ended 30 September 2011, with the company claiming an organic revenue growth of 7% year-on-year as its consolidated mobile operations saw customer numbers increase by more than five million against the same date a year earlier.

In the group’s third fiscal quarter of the year it reported total turnover of EUR24.631 billion (USD34.274 billion), up from EUR24.096 billion in the same period of 2010, with revenues from the group’s domestic operations accounting for just over a quarter of that total, EUR6.691 billion, down from EUR6.983 billion a year earlier. With the group also seeing revenue decline in the neighbouring Scandinavian countries of Sweden and Denmark, these drops were offset by a more than tripling in turnover at Indian cellco Uninor; the unit saw revenue increase by 391% y-o-y to EUR837 million. Group earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile stood at EUR8.292 billion, up from 7.885 billion, and net profit attributable to Telstra’s equity holders was EUR2.589 billion, up from EUR1.698 billion in 3Q10. Looking forward Telenor has adjusted its guidance for FY2011, noting: ‘Despite global macro economic turbulence and floods in Asia, our operations have so far remained resilient. We adjust our guidance for 2011 based on solid performance the first nine months and expectations for the rest of the year.’ The company now expects organic revenue growth in the range of 6–7%, with EBITDA margin before other income and expenses expected to be above 31% and capital expenditure as a proportion of revenues, excluding licences and spectrum, expected to be in the range of 11–12%

In operational terms, at the end of September 2011 Telenor’s consolidated mobile subscriber base totalled 133.472 million, up from 103.707 million a year earlier, while the company also reported that the number of mobile subscriptions attributed to associated companies had surged to 193 million, up from 91.959 million at end-September 2010; the increase was the result of the acquisition of Wind Telecom by Vimpelcom, the latter of which is now 31.67% owned by Telenor. Bangladesh remains Telenor’s largest subsidiary in terms of subscribers, with just over 35 million customers at the end of 3Q 2011, and up almost 23% year-on-year, while India saw the largest percentage growth in customer numbers, posting a more than 300% increase to register 24.190 million accesses at end-September 2011.

Commenting on the results, Jon Fredrik Baksaas, president and CEO of Telenor Group, said: ‘I am pleased to see that in a world of slowing growth and rising risks, Telenor’s financial performance continues to improve. The third quarter of 2011 showed that Telenor’s geographical footprint enables us to grow our business in a manner which yields solid return from mature markets at the same time as we are growing in emerging markets.’

Norway, Telenor Group