Financial overview
- Results
Results
In 2005, Telenor’s net income was NOK 7,646 million, corresponding to NOK 4.47
per share. The corresponding figures for 2004 were NOK 6,093 million and NOK
3.49 per share, respectively.
In 2005, Telenor’s profit before taxes and minority interests amounted to NOK 12,591 million, compared to NOK 9,874 million in 2004. In both 2005 and 2004, the profit before taxes and minority interests was adversely affected by a number of special items (gains and losses on disposals, costs relating to workforce reductions, loss contracts and write-downs), and amounted to NOK 0.5 billion and NOK 0.7 billion, respectively. Adjusted for these special items, the profit increased by NOK 2.5 billion, reaching NOK 13.1 billion in 2005. The increase was largely due to growth in revenues during 2005, resulting from significant customer growth at the international mobile operations.
The operating profit for 2005 was NOK 11.7 billion, against NOK 7.4 billion in 2004. The operating profit for 2004 was negatively affected by write-downs. Net financial items were NOK 1.9 billion lower in 2005 than in the previous year, mainly because the 2004 figures included a realised gain of NOK 2.6 billion on the sale of shareholding in Cosmote.
Cash flow from operational activities increased by NOK 3.3 billion in 2004, to NOK 22.3 billion in 2005, largely due to an increase in revenues. The consolidation of DTAC in Thailand and the acquisitions of Bredbandsbolaget and Cybercity also contributed positively. During 2005, Telenor invested a total of NOK 25.3 billion. Of this amount, NOK 16.4 billion were capital expenditure, which is an increase of NOK 3.7 billion compared to 2004. This was mainly related to the international mobile operations where network capacity has been increased due to high customer growth.
At year-end 2005, Telenor’s total assets amounted to NOK 124.4 billion and the company’s equity ratio (including minority interests) was 43.0%. The corresponding figures for 2004 were NOK 91.4 billion and 48.2%. Net interest-bearing liabilities amounted to NOK 30.9 billion, reflecting an increase of NOK 11.7 billion during the year, due to high capital expenditure and new acquisitions. In the view of the Board the company’s financial position is satisfactory.