First quarter 2008: Continued growth and stable margin

Press release
9 minute read
In the first quarter of 2008, Telenor's pro forma revenues (including Kyivstar) increased by four per cent compared to the first quarter of 2007, reaching NOK 26.3 billion. Underlying revenues increased by seven per cent in the same period. The EBITDA margin before other income and expenses was 35.1 per cent in the first quarter of 2008, up from 34.8 per cent in the first quarter of 2007. Telenor's operations added more than four million subscriptions during the first quarter.

"In the first quarter of 2008 we saw continued underlying revenue growth combined with a stable EBITDA margin. The appreciation of the Norwegian Krone puts pressure on our reported revenue growth. The number of subscriptions in our mobile operations reached 147 million, mainly contributed by continued high net additions in Pakistan, Bangladesh and Thailand," said President and CEO of Telenor, Jon Fredrik Baksaas.

Central and Eastern Europe
"Kyivstar in Ukraine has delivered an outstanding performance with high growth both in revenues and profits, combined with a solid cash flow. Kyivstar confirms its position as market leader with the most valuable consumer brand in Ukraine," Baksaas said.

"In Asia, we see a more turbulent business environment with a significant increase in prices for basic goods, such as rice and fuel, affecting purchasing power. This also affects inflation and general cost levels in the region. In spite of these challenges, our operations are performing well this quarter. Strong competition and high market growth in Bangladesh will continue to put pressure on ARPU and margins in Grameenphone," Baksaas said.

"In our mobile operation in Norway we maintain a strong focus on operational excellence. We delivered a solid underlying growth of five per cent in retail revenues, offsetting most of the reduction in wholesale revenues. The EBITDA margin has significantly improved from the previous quarter, reflecting implementation of efficiency measures," Baksaas said.

Key figures
The table below contains pro forma key figures (including Kyivstar) for the first quarter of 2008, compared to the previous year:

(NOK in millions except earnings per share)

Q1 2008

Q1 2007

Year 2007


26 292

25 271

105 021

EBITDA before other income and expenses

9 230

8 790

36 358

EBITDA margin before other income and expenses (%)




Adjusted operating profit

5 545

4 899

20 642

Adjusted operating profit/Revenues (%)




Profit after taxes and non-controlling interests

4 571

3 187

18 016

Earnings per share from total operations, basic, in NOK





5 089

4 487

22 079

Investments in businesses

1 398


6 041

Net interest-bearing liabilities

31 340

41 489

36 464

For more information please refer to the quarterly report on .

"I am pleased to see that we make daily life easier for our customers world wide. In close cooperation with partners, we have introduced several innovative and user friendly solutions, such as mobile financial services in Bangladesh and Thailand, as well as a mobile health service in Pakistan. We will continue to make the opportunities and benefits of mobile communication available for all," said Jon Fredrik Baksaas.

Scott Engebrigtsen, Vice President Group Communications
Tel: +47 90043484, E-mail

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 Wednesday 30 April 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 Trond Westlie 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 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 with 3G, GPRS or EDGE. For more details please refer to

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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) 800 80 119 (from Norway) or (+47) 23 00 04 00 (from Norway or abroad).

English language versions of the full quarterly report and all presentations used during the press and analyst conference will be made available on at 07:00 and 09:00 hrs Norwegian time/CET, respectively.