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Telenor : First quarter 2013: Improved margins with stable revenues



     Telenor : First quarter 2013: Improved margins with stable revenues

(Fornebu - April 26, 2013) - 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.

 Key figures
The table below contains key figures for the first quarter of 2013, compared
to the previous year.

                                         1Q          1Q             Year
(NOK in millions except earnings per    2013   2012 (Restated) 2012 (Restated)
share)
Revenues                                24 716          25 119         101 718
EBITDA before other income and
expenses                                 8 423           7 761          32 848
EBITDA margin before other income and
expenses (%)                              34,1            30,9            32,3
Adjusted operating profit^[1]            4 985           4 025          18 446
Adjusted operating profit/Revenues (%)    20,2            16,0            18,1
Profit after taxes and non-controlling
interests                                3 602             584           8 809
Earnings per share from total
operations, basic, in NOK                 2,34            0,37            5,63
Capex                                    2 868           2 682          21 511
Capex excl. licences and spectrum        2 868           2 487          12 299
Capex excl. licences and
spectrum/Revenues (%)                     11,6             9,9            12,1
Operating cash flow  ^[2]                5 555           5 274          20 549
Net interest-bearing liabilities ^[3]  28 853          18 384           33 082

For more information please refer to the quarterly report at
http://www.telenor.com/investor-relations/reports/2013/q1-results/.

Contact:
Meera Bhatia, Communications Manager, Tel: +4746844959, E-mail:
meera.bhatia@telenor.com

To the editorial offices:
Press and analyst conference
In connection with the publication of the financial results, a press and
analyst conference will be held on Friday 26 April 2013 at 09:00 hrs Norwegian
time/CET. The presentation will be held in Auditorium A, Telenor Expo
Visitors' Centre, at the Telenor Headquarters at Fornebu outside Oslo.
President and CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will present the
results. All presentations will be given in English.

Internet and mobile broadcast
The press and analyst conference will be broadcast live over the Internet, and
a recorded version will be made available on
http://www.telenor.com/investor-relations/reports/2013/q1-results/. During the
live transmission, written questions may be submitted via the Internet. The
conference will also be available live, and in a recorded version, on mobile
phones - for access, SMS expo to 2440 or +472440 from abroad.

Conference call and Q&A
The press and analyst conference will also be available as a conference call.
This service also allows participants to ask questions at a concluding Q&A
session, which will be held immediately after the presentation and a brief Q&A
session in the auditorium. Please register well in advance on (+47)23184545,
and state your name and company to an automatic voicemail followed by # (pound
sign). For the Q&A session: to queue up for questions please press *1.

Materials
English language versions of the full quarterly report and all presentations
used during the press and analyst conference will be made available at
http://www.telenor.com/investor-relations/reports/2013/q1-results/

-------------------------

[1]Adjusted operating profit is defined as Operating profit less other income
and expenses and impairment losses.

[2]Operating cash flow is defined as EBITDA before other income and expenses -
Capex, excluding licences and spectrum

[3]Net interest-bearing liabilities is defined as interest-bearing debt
excluding net present value of licence liabilities.

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Telenor via Thomson Reuters ONE
HUG#1696442
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