Telenor outlines ‘sound operational performance’ in 2Q12

24 Jul 2012

Norwegian telecoms group Telenor has released its financial results for the three months ended 30 June 2012, revealing what it claimed was ‘sound operational performance’, with the company reporting a 5% year-on-year increase in turnover on an organic basis. For the quarter under review Telenor posted total revenues of NOK25.357 billion (USD4.16 billion), while earnings before interest, tax, depreciation and amortisation (EBITDA) before other income and expenses rose to NOK8.041 billion, up from NOK7.457 billion in the same period a year earlier. Adjusted operating profit for the three-month period meanwhile stood at NOK4.485 billion, representing a 26.9% increase against 2Q11, although net profit tumbled to NOK2.065 billion, less than half the NOK4.492 billion the Norwegian company recorded a year earlier. The decline was in part attributed to a net currency loss of NOK180 million in 2Q12 compared to a net currency gain of NOK354 million in the comparable period of 2011, while Telenor also noted that a ‘net change in fair value of financial instruments’ had meant a loss of NOK285 million in the most recently reported quarter. In terms of capital expenditures, in the three months to end-June 2012 Telenor spent NOK2.959 billion, up from NOK2.714 billion spent in the same period of 2011, with the largest portion of funding having been spent in Asia (36%), while the group’s domestic and European units accounted for 32% and 22% of expenditure respectively.

At the end of the first half of 2012 Telenor’s group-wide mobile subscriber base had increased to just over 151 million, up from around 128 million a year earlier, with the company’s Bangladeshi and Indian subsidiaries remaining its largest in terms of subscribers; the two units accounted for 39.294 million and 33.722 million customers respectively at the end of the quarter. Of the countries in which Telenor operates, only Montenegro and Hungary saw a drop in their customer numbers compared to end-June 2011; the latter, meanwhile had, however, actually registered an increase in subscribers compared to end-March 2012.

Commenting on the results, Jon Fredrik Baksaas, Telenor Group president and CEO, noted: ‘The Telenor Group’s improved operational performance resulted in more than 5% organic revenue growth and solid margin improvement in the second quarter. Our presence in the Nordic region and the growing Asian economies demonstrates the benefits of the geographical diversification in the Group. Our consolidated mobile operations added five million new customers during this period, bringing the subscription base above the 150 million mark.’

Norway, Telenor Group