Norwegian telecoms giant Telenor Group has published its financial results for the year ended 31 December 2014, reporting revenues of NOK106.540 billion (USD16.97 billion), a figure representing year-on-year organic growth of 3.4%. With turnover up 7.5% on a reported basis, the company noted that it had recorded improved revenues in all operations except Thailand’s DTAC and its Broadcast unit, with the former seeing a revenue decline ‘caused by lower interconnect rates and a challenging business environment’. Currency effects on revenues, meanwhile, were said to be positive by NOK2.3 billion.
EBITDA before other items increased by NOK2.9 billion, or 8.2%, in FY2014, with NOK700 million of that said to be the result of the inclusion of Telenor Bulgaria, while improved performance in all operations more than offset the Norwegian group’s start-up costs in Myanmar and the divestment of Conax, a company which develops television encryption, conditional access and content security for digital television. Operating profit for the financial year under review meanwhile increased by NOK3.94 billion on the back of EBITDA improvements, with the company reporting a net income of NOK14.028 billion, compared to NOK12.123 billion in the previous twelve-month period.
Capital expenditure (CAPEX) excluding licences and spectrum grew by NOK2.6 billion in 2014, to NOK16.870 billion, with investments reportedly increasing in all business units except Norway, DTAC and Broadcast. Including licensing and spectrum costs CAPEX in 2014 totalled NOK22.527 billion, compared to NOK16.610 billion a year earlier.
Looking ahead, Telenor has said it expects to record mid-single digit organic revenue growth in 2015, with an EBITDA margin before other income and expenses in the range of 33-35%. Meanwhile, in the forthcoming financial year capital expenditure as a proportion of revenues, excluding licences, spectrum and the broadcasting satellite, is expected to be unchanged from 2014.
In operational terms, Telenor Group reported a consolidated mobile subscriber base of 183.976 million at end-December 2014, up from 165.794 million a year earlier, with customer gains reported at all of the group’s units bar Hungary and Bulgaria.
Commenting on the results, Jon Fredrik Baksaas, Telenor Group president and CEO, said: ‘Our performance in 2014 confirms Telenor Group’s position as one of Europe’s fastest growing telcos, with organic revenue growth of 5% during the final quarter and 3% for the full year. We reported revenues and earnings in line with our guidance for the year. During 2014, we added 20 million new mobile subscribers, of which 7 million in the fourth quarter alone.’