(Fornebu, 4 May 2011) In the first quarter of 2011, Telenor Group reported
revenues of NOK 24,1 billion, representing an organic revenue growth of 7%.
EBITDA before other items was NOK 7.4 billion, EBITDA margin was 31 per cent,
and operating cash flow was NOK 5 billion. Telenor's consolidated mobile
operations added nine million subscriptions during the quarter.
"The Telenor Group started 2011 with 7% organic revenue growth and healthy
margins. We achieved an operating cash flow of NOK 5 billion, while most of the
operations are going through significant network modernisation. Our mobile
operations are continuing the strong subscriber growth seen in the last part of
2010, adding 9 million subscribers during the first quarter this year," said Jon
Fredrik Baksaas, President and CEO of Telenor Group
Nordic
"In the Nordic region, mobile voice usage is fairly stable while data continues
to grow. In Norway and Denmark, there is increased price competition and more
comprehensive measures on cost reductions are required. The network
modernisation programmes in all three markets will significantly reduce network
operations cost. Telenor Sweden acquired 800 MHz spectrum which will contribute
to an efficient 4G network. Throughout the Nordics, we are launching a number of
new service offerings that will strengthen our market position and enhance user
experience," Baksaas said.
Central and Eastern Europe
"In Central and Eastern Europe, Telenor Serbia confirmed the positive momentum
with strong growth and improved margins while Telenor Hungary maintained stable
underlying margins. On 15 April, VimpelCom completed the Wind Telecom
transaction following the approval by a special shareholder meeting. Telenor
opposed the transaction, but we will continue to work in the best interest of
VimpelCom. In parallel, we have initiated arbitration proceedings to secure
Telenor's shareholder rights," Baksaas said.
Asia
"The Asian operations were the main contributors to subscriber and revenue
growth. Uninor in India continued the trend from second half of 2010, with
subscriber growth of 5.2 million, reaching 17.4 million. Indian authorities
continue their investigations of the 2G licence award process that took place
early 2008, prior to Telenor's entry to Uninor. Telenor welcomes an early
clarity on these issues. The four other Asian operations achieved 13% organic
revenue growth in the quarter. Smartphone demand and data usage in Malaysia and
Thailand continues the strong momentum. Customer growth in Grameenphone
continued at high level and contributed to 21% revenue growth. With 26% cash
flow margin we are on track to deliver good returns in Pakistan," Baksaas ended.
Maintained outlook for 2011
Based on the results and trends in the first quarter, Telenor maintains its
outlook for 2011.
Key figures
The table below contains key figures for the first quarter of 2011, compared to
the previous year:
+-------------------------------------------------------+-------------+------+
|(NOK in millions except earnings per share) |First quarter| Year |
+-------------------------------------------------------+------+------+------+
|Â | 2011 | 2010 | 2010 |
+-------------------------------------------------------+------+------+------+
|Revenues |24 092|22 339|94 843|
+-------------------------------------------------------+------+------+------+
|EBITDA before other income and expenses | 7 359| 7 151|29 220|
+-------------------------------------------------------+------+------+------+
|EBITDA margin before other income and expenses (%) | 30.5| 32.0| 30.8|
+-------------------------------------------------------+------+------+------+
|Adjusted operating profit | 3 654| 3 193|13 086|
+-------------------------------------------------------+------+------+------+
|Adjusted operating profit/Revenues (%) | 15.2| 14.3| 13.8|
+-------------------------------------------------------+------+------+------+
|Profit after taxes and non-controlling interests [1] | 2 793| 1 038|14 333|
+-------------------------------------------------------+------+------+------+
|Earnings per share from total operations, basic, in NOK| 1.71| 0.63| 8.69|
+-------------------------------------------------------+------+------+------+
|Capex[2] | 2 610| 2 383|11 688|
+-------------------------------------------------------+------+------+------+
|Capex excl. licences and spectrum | 2 403| 2 383|11 355|
+-------------------------------------------------------+------+------+------+
|Capex excl. licences and spectrum/Revenues (%) | 10.0| 10.7| 12.0|
+-------------------------------------------------------+------+------+------+
|Operating cash flow [3] | 4 956| 4 768|17 865|
+-------------------------------------------------------+------+------+------+
|Net interest-bearing liabilities |15 088|21 252|19 276|
+-------------------------------------------------------+------+------+------+
For more information please refer to the quarterly report on
http://www.telenor.com/en/investor-relations/reports/q1-2011.
Contact:
Scott Engebrigtsen, Communication Manager, Telenor Group, Tel: +47 90043484, E-
mail:scott.engebrigtsen@telenor.com
To the editorial offices:
Press and analyst conference
In connection with the publication of the financial results, a press and analyst
conference will be held on Wednesday 4 May 2011 at 09:00 hrs Norwegian time/CET.
The presentation will be held in Auditorium A, Telenor Expo Visitors' Centre, at
the Telenor Headquarters at Fornebu outside Oslo. President and CEO Jon Fredrik
Baksaas and CFO Richard Olav Aa will present the results. All presentations will
be given in English.
Internet and mobile broadcast
The press and analyst conference will be broadcast live over the Internet, and a
recorded version will be made available onhttp://www.telenor.com/en/investor-
relations/reports/q1-2011. During the live transmission, written questions may
be submitted via the Internet. The conference will also be available live, and
in a recorded version, on mobile phones - for access, SMS expo to 2440 or
+47 99454510 from abroad.
Conference call and Q&A
The press and analyst conference will also be available as a conference call.
This service also allows participants to ask questions at a concluding Q&A
session, which will be held immediately after the presentation and a brief Q&A
session in the auditorium. Please register well in advance on (+47) 800 80 119
(from Norway) or (+47) 23 18 45 01 (from Norway or abroad).
Materials
English language versions of the full quarterly report and all presentations
used during the press and analyst conference will be made
availablehttp://www.telenor.com/en/investor-relations/reports/q1-2011 at 07:00
and 08:45 hrs Norwegian time/CET, respectively.
--------------------------------------------------------------------------------
[1] As of the first quarter 2010, figures for OJSC VimpelCom and Kyivstar were
included with a one quarter lag.
[2] Capex is defined as capital expenditures from continuing operations
[3] Operating cash flow is defined as EBITDA before other income and expenses -
Capex, excluding licenses and spectrum.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Telenor via Thomson Reuters ONE
[HUG#1512083]
