First quarter 2013: Improved margins with stable revenues.
In the first quarter of 2013, Telenor Group reported revenues of NOK 24.7 billion. EBITDA before other items was NOK 8.42 billion, EBITDA margin was 34 %, and operating cash flow was NOK 5.6 billion.
“The first quarter of 2013 is characterised by a solid operating cash flow of NOK 5.6 billion, strong margins in several operations and good progress in operational performance in India. The strengthened EBITDA margin of 34% is further supported by a higher share of bundled subscriptions and good network quality in the Norwegian operation,’’ said Jon Fredrik Baksaas, President and CEO of Telenor Group.
“The organic revenue growth for the Group this quarter is weaker than previous quarters due to lower growth contribution from India and handset sales, as well as regulatory factors. However, we regard the underlying trends as positive. We see healthy mobile service revenue growth in our operations in Norway and Thailand contributing to solid margins, as well as strong customer acquisition in Bangladesh. Regulatory issues impacted our performance in Pakistan this quarter however we now see sales picking up. During this quarter, dtac in Thailand completed a nationwide network upgrade and is preparing for the launch of 3G services on the 2.1 GHz frequency band in the second quarter. This will represent an important milestone in the transition from a concession to a licencing regime,’’ said Baksaas.
“In Norway, we continue to invest to secure our customers’ access to superior mobile network coverage and high quality of services. We have recently adjusted our mobile market offers to adapt to changing customer needs and the transition to data. We see positive effects from operational efficiency this quarter, and regard this as a key contributor to value creation going forward, ” said Baksaas.
“To enable our customers to take advantage of the opportunities that the Internet offers, we need to be responsive to change. The growth in demand for data centric services requires significant investments in high-speed networks. It is therefore paramount that we continue to implement sustainable business models to secure long-term return on these investments,” said Baksaas.
“Based on the performance in the first quarter and our estimates for the rest of the year, we adjust the 2013 outlook for organic revenue growth somewhat to 2-4%. At the same time, we maintain the outlook for EBITDA margin and capex/sales.” said Baksaas.
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Please refer to Telenor Group’s quarterly report for more information on all Telenor companies. www.telenor.com
(Oslo, Norway) Telenor Satellite Broadcasting (TSBc) today announced the signing of a satellite transmission agreement with Neterra, a new direct-to-home (DTH), white-label, shared platform, called “the W1”, that offers pay-tv services in Bulgaria.
Neterra has contracted two transponders on TSBc’s THOR 6 satellite, located at 1˚West, one of the fastest-growing orbital positions for Central and Eastern Europe. The capacity will be utilised for video distribution in Bulgaria, where Neterra plans to offer other operators a premium pay-tv platform, delivering a high-quality and highly reliable service, using the latest available technology.
The arrival of Neterra gives another boost to the local and international channel line-up available at 1˚West, which distributes more than 700 TV and radio channels.
Lars Janols, Commercial Director of TSBc, commented: “1˚West is now a well-recognised broadcast position in CEE and reaches more than 17 million households across Europe. We are seeing a more buoyant take-up of pay-tv services within this region and we welcome and look forward to working with Neterra in developing its DTH proposition for the Bulgarian market.”
“Neterra has more than 18 years of expertise in providing and supporting broadcasting services in Bulgaria,” said Neven Dilkov, CEO of Neterra. “Our new Bulgarian DTH service will offer a bouquet of premium-quality channels, which will deliver a superior TV experience.”
Neterra expects the first operators that will utilise the new DTH platform to launch within the next few months, carrying more than 60 of the Bulgarian market’s most popular local and international channels. Neterra plans to expand this channel line-up rapidly to include local and international HD channels.
Neterra is the preferred Bulgarian operator for complex telecommunications services and projects in Southeast Europe and has 17 years of history. Neterra’s dedication to providing first-class service at every step of the way, from infrastructure to future technologies, makes it one of the leading companies in the region. Neterra supports a portfolio of integrated global communication solutions based on the latest fibre, IP and satellite transmission technologies. We are known for reliable VPN services and data networks, Internet access, co-location, construction and maintenance of satellite systems. Neterra’s data network covers all major cities in Bulgaria and through our partners and operators we reach points across the entire world. Its reliable and secure DWDM, MPLS-based network has been engineered to provide the highest levels of availability, efficiency, flexibility and quality of service. For more information about Neterra, please visit www.neterra.net
In the fourth quarter of 2012, Telenor Group reported revenues of NOK 26.0 billion, representing an organic revenue growth of 5%. EBITDA before other items was NOK 8.2 billion, EBITDA margin was 31.5 %, and operating cash flow was NOK 4.6 billion. For the full year of 2012, Telenor’s revenues were NOK 101.7 billion, EBITDA before other items was NOK 32.8 billion, EBITDA margin was 32.2% and operating cash flow was 20.5 billion.
“I am pleased to close an eventful year with strong financial results and having reached important milestones. We have seen a strong increase in demand for data services during the year. The launch of 4G services in Norway and acquisition of a 3G licence in Thailand will enable us to introduce even better mobile services to our customers. With the acquisition of new licences in India, we have secured a platform for our future in this growth market. Telenor’s position in VimpelCom has been restored, and we will support and contribute to the company’s value agenda going forward,” said Jon Fredrik Baksaas, President and CEO of Telenor Group.
“For the full year 2012, organic revenue growth was 5%, EBITDA margin improved notably from last year and operating cash flow exceeded NOK 20 billion. During the year, we have invested heavily to improve user experience and prepare for increased efficiency and continued growth,” Baksaas said.
“The continued solid performance by our Norwegian operation reflects high demand for both mobile and fixed line Internet services. Introduction of new offerings and investment in superior network quality provide our customers with the best services, coverage, capacity and the latest mobile technology. The Asian operations have demonstrated another year of high margins. We see smartphone and data demand picking up in Thailand and Malaysia as well as steady operational improvements in Pakistan,” Baksaas said.
Please refer to Telenor Group’s quarterly report and full press release for more information on all Telenor companies. www.telenor.com
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