Norwegian telecoms group Telenor has released its financial results for the three months ended 30 June 2014, reporting data growth and margin expansion for the period under review.
In the second quarter of 2014 Telenor generated a total turnover of NOK26.803 billion (USD4.48 billion), representing organic year-on-year growth of 1.8% against the NOK25.747 billion in the same period a year earlier. All of the group’s units bar those in Thailand (DTAC) and Denmark reported revenue growth, with the former said to have been ‘severely affected by lower interconnect rates’, while the Danish operation had been impacted by a challenging business environment. Earnings before interest, tax, depreciation and amortisation (EBITDA) before other income and expenses stood at NOK9.616 billion in 2Q14, representing an 8.6% increase against the corresponding quarter of 2013, while adjusted operating profit totalled NOK5.881 billion, up from NOK5.466 billion. Net income, however, fell year-on-year to NOK2.319 billion in 2Q14 from NOK3.249 billion. Capital expenditure in the quarter under review meanwhile totalled NOK4.880 billion, up from NOK3.484 billion in 2Q13, while excluding the spending on licences the total was NOK3.985 billion, up 14.4% y-o-y, mainly as a result of network and infrastructure investments in Thailand, Bangladesh and Myanmar.
In operational terms, at the end of June 2014 Telenor Group reported a total mobile subscriber base of 175.591 million, up from 171.786 million three months earlier, and from 152.729 million at end-June 2013.
Commenting on the group’s future financial expectations on the back of its recent results, Telenor Group CEO Jon Fredrik Baksaas said: ‘On the back of strong performance so far this year and our estimates for the remainder of 2014, we now expect an EBITDA margin above last year while our revenue outlook remains at low single digit organic growth. Following the shift of the satellite-related capex to next year, we adjust this year’s capex to sales ratio downwards to be in the range of 14%-15%.’