Telenor swings to net loss in 3Q16 on Indian licence impairment

26 Oct 2016

Norwegian telecom giant Telenor Group has published its financial results for the three months ended 30 September 2016, reporting continued revenue growth and what it called ‘an all-time high EBITDA’, with results said to have been supported by ‘a strengthened cost focus across the group’. In the period under review, Telenor Group generated a total turnover of NOK32.794 billion (USD3.9 billion), representing an organic growth rate of 1.8%. The company noted that growth had been driven by increased ARPU in both Bangladesh and Pakistan, while its Myanmar operations had also performed well. Increases from these aforementioned areas were said to have been partially offset by lower outbound roaming revenues in the group’s Scandinavian operations, while it also cited ‘intense’ competition in Thailand and Malaysia. EBITDA before other income and other expenses totalled NOK12.459 billion in the third quarter of 2016, up from NOK11.848 billion in the corresponding period a year earlier. Meanwhile, Telenor recorded a net loss of NOK4.8 billion in the quarter, predominantly due to a NOK4 billion impairment loss recorded after the company reassessed the fair value of its Indian licences ‘based on recent observations’ in that market.

In operational terms, Telenor Group’s mobile subscriber base totalled 210.519 million, representing year-on-year growth of 7.4%, though the figure was lower than the 211.424 million reported for end-June 2016.

Commenting on the company’s plans moving forward, Telenor Group CEO Sigve Brekke was cited as saying: ‘We will continue to focus on creating value from data growth in our core operations. As our customers increasingly demand more exciting and user-friendly services, we will focus on capturing growth opportunities while addressing costs through the digitisation and transformation of our core business.’

Norway, Telenor Group