Third quarter 2012: High margins and continued growth
In the third quarter of 2012, Telenor Group reported revenues of NOK 25.3 billion, representing an organic revenue growth[1] of 3%. EBITDA before other items was NOK 8.8 billion, EBITDA margin was 34.8%, and operating cash flow was NOK 5.5 billion.
In the third quarter of 2012, Telenor Group reported revenues of NOK 25.3 billion, representing an organic revenue growth[1] of 3%. EBITDA before other items was NOK 8.8 billion, EBITDA margin was 34.8%, and operating cash flow was NOK 5.5 billion.
Significant investments in Norway
“I am proud of our recent launch of 4G services in 11 cities in Norway. The rollout continues at rapid speed, and more than nine out of every ten Norwegian will have access to our 4G network in 2015. Telenor’s significant and long term investments enable us to deliver superior coverage and network quality, catering for the strong uptake of data services. The increased data usage and migration to bundled tariffs contributed to revenue growth this quarter,” said Jon Fredrik Baksaas, President and CEO of Telenor.
Challenges in Bangladesh and Hungary
“In Bangladesh, we are experiencing intense competition and a challenging regulatory environment. Grameenphone has initiated mitigating activities to regain revenue growth, including further development of Grameenphone’s leading network and distribution position. In Hungary, the disputed double taxation regime and other regulatory challenges pose a significant risk for the industry going forward,” Baksaas said.
Mobile data growth in Serbia, Sweden and Thailand
“Telenor Serbia, Telenor Sweden and DTAC in Thailand all demonstrate profitable growth fuelled by smartphones and mobile data demand. We are pleased to see that DTAC has won the auction for 3G licence and spectrum. Our Broadcast unit reports record high EBITDA margin on the back of well-executed cost management,” Baksaas said.
Submitted application in India
“In India, we have submitted an application for participation in the upcoming licence auction. However, several key issues need to be resolved before the final decision is made on participation. Meanwhile, the restructuring of the Indian operation is progressing according to plan,” Baksaas said.
Guiding for 2012
“For the full year 2012, we expect organic revenue growth of around 4% and operating cash flow margin of 23 to 24% not including India. At our Capital Markets Day in September, we announced our goals for the coming years, in order to stay ahead and drive value creation. With continued growth above peers and improved operational efficiency we aim for an operating cash flow of NOK 28 to 30 billion in 2015,” Baksaas said.
Key figures for third quarter
The table below contains key figures for the third quarter of 2012, compared to the previous year:
| (NOK in millions except earnings per share) | Third quarter | Year | |
2012 | 2011 | 2011 | |
| Revenues | 25 253 | 24 631 | 98 516 |
| EBITDA before other income and expenses | 8 796 | 8 292 | 30 526 |
| EBITDA margin before other income and expenses (%) | 34.8 | 33.7 | 31.0 |
| Adjusted operating profit 2 | 5 366 | 4 493 | 15 217 |
| Adjusted operating profit/Revenues (%) | 21.2 | 18.2 | 15.4 |
| Profit after taxes and non-controlling interests | 3 649 | 2 589 | 7 165 |
| Earnings per share from total operations, basic, in NOK | 2.34 | 1.62 | 4.45 |
| Capex | 5 499 | 2 760 | 11 907 |
| Capex excl. licences and spectrum | 3 336 | 2 722 | 11 441 |
| Capex excl. licences and spectrum/Revenues (%) | 13.2 | 11.1 | 11.6 |
| Operating cash flow 3 | 5 460 | 5 571 | 19 085 |
| Net interest-bearing liabilities | 18 222 | ||
For more information please refer to the quarterly report onhttp://telenor.com/investor-relations/reports/2012/q3/.