Fourth quarter 2011: Completing a year of strong growth

Press release
8 minute read
In the fourth quarter of 2011, Telenor Group reported revenues of NOK 25.4 billion, representing an organic revenue growth of 7%. EBITDA before other items was NOK 7.4 billion, EBITDA margin was 29 per cent, and operating cash flow was NOK 3.8 billion. For the full year of 2011, Telenor's revenue were NOK 98.5 billion, EBITDA before other items was NOK 30.5 billion, EBITDA margin was 31% and operating cash flow was 19.1 billion.
"The performance throughout 2011 once again confirms Telenor's position as one of Europe's fastest growing telcos, most notably with organic revenue growth of 7% both for the quarter and the full year. In 2011, we added 29 million mobile subscriptions, of which 7 million in the fourth quarter," said Jon Fredrik Baksaas, President and CEO of Telenor Group.

Main drivers

"The Group's growth momentum is driven by strong customer uptake in our Asian operations and increasing demand for data services. The results from the Norwegian operation are impacted by high market activities this quarter to speed up migration to new bundled price plans," Baksaas said.


"The positive operational development in Uninor throughout the year continued in the fourth quarter, and we are now recognised as a growing player in the Indian market. The recent ruling from the Indian Supreme Court to cancel all telecom licences issued in 2008 severely penalizes Telenor for actions that took place before we entered India. We are working to protect our investments in all possible manners, and will consider every option prior to any further investments. We expect Indian authorities to conduct a swift and fair process," Baksaas said.

Infrastructure modernisations

"During the year, we invested significantly to bring new and improved services to our customers and cater for the tremendous growth in data traffic. We are confident that over time, the infrastructure modernisations will improve efficiency and benefit both our customers and the environment," Baksaas said.


"In VimpelCom, the results are affected by the acquisition of Wind Telecom. We support VimpelCom in execution of its strategy for improved operational excellence, profitable growth and capital efficiency," Baksaas said.

All-time high shareholder remuneration

"In 2011, Telenor delivered a solid operating cash flow of more than NOK 19 billion and we maintained a strong balance sheet. We completed the share buyback programme for 2011 in November, returning NOK 4.4 billion to the shareholders. Together with the dividends paid out in June 2011, this resulted in an all-time high shareholder remuneration of NOK 10.7 billion. For 2011, the Board of Directors proposes a dividend of NOK 5.00 per share, implying a pay-out ratio in the high end of the dividend policy range," Baksaas said.

"We are confident that by utilizing our market positions, people and capabilities, the Telenor Group will see further growth and strong performance in 2012," Baksaas ended.

Key figures

The table below contains key figures for the fourth quarter and full year of 2011, compared to the previous year.

Fourth quarterYear
(NOK in millions except earnings per share)2011201020112010
Revenues25 43324 85898 51694 843
EBITDA before other income and expenses7 4177 17930 52629 220
EBITDA margin before other income and expenses (%)29.228.931.030.8
Adjusted operating profit3 5333 03415 21713 086
Adjusted operating profit/Revenues (%)13.912.215.413.8
Profit after taxes and non-controlling interests(1 937)2 1037 93714 333
Earnings per share from total operations, basic, in NOK(1.19)1.294.898.69
Capex3 8233 78311 90711 688
Capex excl. licences and spectrum3 6383 78311 44111 355
Capex excl. licences and spectrum/Revenues (%)14.315.211.612.0
Operating cash flow3 7803 39519 08517 865
Net interest-bearing liabilities18 22219 276


Scott Engebrigtsen, Communication manager, Tel: +4790043484, E-mail:

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Press and analyst conference

In connection with the publication of the financial results, a press and analyst conference will be held on Wednesday 8 February 2012 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 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.


English language versions of the full quarterly report and all presentations used during the press and analyst conference will be made available at

1 Adjusted operating profit is defined as operating profit less other items and impairment losses

2As of the first quarter 2010, figures for OJSC VimpelCom and Kyivstar were included with a one quarter lag.

3 Capex is defined as capital expenditures from continuing operations.

4Operating cash flow is defined as EBITDA before other income and expenses - Capex, excluding licenses and spectrum.