Highlights for the third quarter 2015
Telenor reported third-quarter revenues of NOK 31.8 billion and organic revenue growth of 4%. EBITDA before other items was NOK 11.8 billion and the EBITDA margin remained stable at 37%. Adjusted for VimpelCom impairment, net income was NOK 3.6 billion.
The guidance for the full year is organic revenue growth of around 5% and an EBITDA margin of 34%-35%. The adjusted outlook is primarily a consequence of the inclusion of the Danish operation.
In Norway, strong mobile market performance continued driven by increasing data demand. Mobile subscription and traffic revenues rose 5%. With annual investments of more than NOK 4 billion, we will continue to provide our customers with superior network experience.
Intense competition impacted performance in Thailand, Malaysia and Denmark. We are continuing our turnaround process in Thailand. Profitability in Malaysia was affected by currency headwinds and price pressure. Our planned merger with TeliaSonera in Denmark was withdrawn and we are now reviewing our strategic options in Denmark.
In Myanmar, the solid momentum continued. After a year of building network coverage in cities and larger towns, Telenor is now continuing its expansion into rural townships and villages.
There are promising growth trends visible in Pakistan, Bangladesh, Sweden and Hungary. Subscriber growth significantly increased both in Pakistan and Bangladesh, while the operations in Sweden and Hungary reported improved subscription and traffic revenue growth.
On 5 October, we announced our intention to divest all our shares in VimpelCom Ltd. This triggered an impairment with effect of NOK 5.4 billion to the income statement in the third quarter.
On 27 October 2015, the Board of Directors of Telenor ASA resolved a second semi-annual dividend for the financial year 2014 of NOK 3.50 per share. This is in line with the earlier communicated intention of the Board of Directors. Including the NOK 3.80 per share paid out in June 2015, this brings the total dividends for the year to NOK 7.30 per share.
Meera Bhatia, Tel: (+47) 4684 4959, E-mail: firstname.lastname@example.org