Telenor cuts revenue estimates for FY13 as it publishes third quarter financials

31 Oct 2013

Norway’s Telenor Group has published its financial results for the three months ended 30 September 2013, with the company having confirmed that it is reducing its forecast for organic revenue growth for the year.

With the company generating a total turnover of NOK25.593 billion (USD42.7 billion) in the third quarter of 2013, up marginally from a restated total of NOK25.253 billion in the corresponding period a year earlier, Telenor said that solid growth at its Thai and Bangladeshi units, in addition to the effects of its acquisition of Bulgarian operator GloBul, were partially offset by a weaker Danish market, reduced scale of the Indian operation and lower revenues from its domestic operations. Telenor has said it now expects organic revenue growth of between 1% and 2% this year; in previous guidance the company had said it expected growth of between 2% and 4%. EBITDA stood at NOK9.465 billion in 3Q12, up 10.7% year-on-year, a level of growth which Telenor attributed predominantly to improved performance in India, Thailand, Sweden and Bangladesh, while operating profit was NOK6.005 billion. Net income for the quarter under review, meanwhile, was NOK3.917 billion, up from NOK3.650 billion a year earlier.

In operational terms, at the end of September 2013 Telenor consolidated mobile subscriber base totalled 157.126 million, up from 149.620 million a year earlier, and a notable increase from the 152.729 million reported at end-June 2013. A significant factor in the increase was the inclusion of subscribers from Telenor’s new Bulgarian subsidiary, which at the end of the reporting period had 3.944 million customers on its books. In terms of subscriber gains, the group’s Bangladeshi unit Grameenphone saw the highest number of additions, with its customer total climbing by more than five million year-on-year to 46.043 million. Also of note were DTAC in Thailand and Telenor Pakistan, which registered net additions of 2.903 million and 2.181 million in the year to end-September 2013. Meanwhile, while Uninor, Telenor’s Indian operation, reported 26.000 million subscribers at the end of the quarter, down from 29.075 million a year earlier, subscriber growth is returning, with the cellco adding almost 1.5 million customers in the three months to end-September 2013.

Commenting on the company’s quarterly performance, Jon Fredrik Baksaas, president and CEO of Telenor Group, said: ‘Telenor Group’s performance this quarter is proof of a sound business with solid earnings and margins. A record high EBITDA of NOK9.6 billion, as well as an operating cash flow margin of 23%, demonstrates our ability to create value. Our effort to capture growth remains a top priority, while we will continue to drive efficiency improvements.’

Norway, Telenor Group