Telenor Raises 2011 Guidance Amid ‘Solid’ 2011 Performance
Telenor ASA (TEL), the largest phone company in the Nordic region, raised its full-year sales and profitability outlook after third-quarter profit rose.
The Fornebu, Norway-based company expects so-called organic revenue growth in the range of 6 percent to 7 percent, up from a previous guidance of more than 5 percent. Earnings before interest, taxes, depreciation and amortization before other income and expenses is expected to exceed 31 percent of sales, compared with an earlier outlook for a margin of about 31 percent.
“Despite global macroeconomic turbulence and floods in Asia, our operations have so far remained resilient,” Jon Fredrik Baksaas, chief executive officer, said in the statement.
Third-quarter net income rose 52 percent to 2.59 billion kroner ($470 million), from 1.7 billion kroner a year earlier, missing the 2.68 billion-krone average of 21 analysts’ estimates compiled by Bloomberg. Sales rose 2.2 percent to 24.6 billion kroner.
Telenor has mobile operations in 11 countries across Europe and Asia and in a further 20 markets via its stake in VimpelCom Ltd. (VIP) Its Indian venture Uninor is starting to show Ebitda improvement and is on “track” to become an "ultra low-cost" operator, it said today. “The regulatory framework is still unclear and we urge Indian authorities to provide clarity shortly,” Baksaas said.
To contact the editor responsible for this story: Meera Bhatia at email@example.com