Telenor reports best quarter for EBITDA

Telenor’s Fornebu HQ

Norwegian operator Telenor reported its best ever quarter in terms of EBITDA and operating cash flow, after adding 3.4 million new mobile subscribers during the third quarter.

In its home market, total revenue in the quarter was NOK6.675 billion, up 6% year-on-year, with fixed revenues remaining stable as increased revenues from internet and TV were offset by reductions in fixed telephony and wholesale revenues.

In Norway, fixed internet and TV revenues alone came in at NOK1.35 billion, while average revenue per user for TV was NOK284 per month, compared to NOK257 in Q3 2013.

In January, Telenor acquired Tele2’s Swedish residential fibre and cable TV business for NOK747 million. The business includes 370,000 connected households, with 125,000 fixed broadband subscribers, 75,000 digital TV subscribers and 220,000 analogue TV households.

“The acquisition strengthens Telenor’s position as one of the leading providers of broadband and digital TV services in Sweden,” the firm said.

Overall, Telenor reported total revenues of NOK 27.7 billion for the quarter, representing organic revenue growth of 3.5%.

EBITDA before other items was NOK10.3 billion, the EBITDA margin was 37% and operating cash flow was NOK6.3 billion.

“During the third quarter, we continued to drive profitability and revenue growth and reported the best quarter ever in terms of EBITDA and operating cash flow. We added 3.4 million new mobile subscribers during the period, fuelled by customer uptake in India, Bangladesh, Malaysia and our newest market Myanmar,” said Telenor president and CEO Jon Fredrik Baksaas.

“Our extensive 4G network expansion in Norway combined with an increased number of 4G enabled devices fuelled consumers’ appetite for data and resulted in robust revenue growth in the quarter. Ever-evolving customer expectations require further investments and strong focus on efficient operations in Norway.”

Telenor Group has mobile operations in 13 markets and an additional 14 markets through its ownership of VimpelCom. In total it claims 179 million mobile subscriptions.