Financial overview
- Outlook for 2006
The strong subscriber growth in Telenor’s mobile operations in 2005 provides the group with a sound basis for further revenue growth. Reported revenues is expected to increase by 25 – 30%, based on the current structure.
It is also expected high EBITDA growth, mainly driven by the international mobile operations. Telenor will continue the process of identifying initiatives that can contribute to reduce costs. The EBITDA margin for 2006, before other income and expenses, is expected to be around 33%.
It is expected high levels of capital expenditure in the coming period, and the ratio of capital expenditure to operating revenues is expected to be above 20%. Capital expenditure is likely to be driven by rapid subscription growth in Telenor’s international mobile operations.
A steadily increasing proportion of Telenor’s operating revenues and profits are generated by operations outside Norway. Fluctuations in exchange rates will affect the figures reported in NOK to an increasing extent. Political risks, including regulatory matters, can also affect profits, and seasonal variations can also be reflected in the interim results.