Fourth quarter and preliminary results for the year 2006: Strong growth completed an outstanding year

Press release
10 minute read
Compared to the previous year, Telenor's revenues increased by 37 per cent in 2006, to NOK 91.1 billion. Profit after taxes and minority interests more than doubled compared to 2005, reaching NOK 15.9 billion. In the fourth quarter of 2006, revenues increased by 30.0 per cent compared to the same period last year, reaching NOK 24.5 billion. The EBITDA margin in the fourth quarter of 2006 was 33.4 per cent, compared to 34.9 per cent in the fourth quarter of 2005.

"2006 has been an outstanding year with high growth in revenues and profits, significantly improving our operating cash flow. The number of subscriptions in our mobile operations increased by more than 30 million, reaching 115 million. I'm proud to see that our consistent strategy of investing in emerging markets combined with a strengthened position in the Nordic markets has led to such strong results. Building on this strong position, we expect the high underlying growth to continue in 2007," said President and CEO of Telenor, Jon Fredrik Baksaas.

"We have had another quarter of record-high subscription growth, mainly driven by impressive net additions in Kyivstar and Telenor Pakistan. Operationally and financially our mobile operations have performed very well. However, the quarterly results from Fixed Norway and Broadcast have been affected by higher costs related to operational conditions and marketing activities," said Jon Fredrik Baksaas.

Mobile operations
All mobile operations maintained or improved their positions in the market. The number of mobile subscriptions in operations in which Telenor has ownership interests increased by 10 million in the fourth quarter of 2006, reaching 115 million. The number of mobile subscriptions in consolidated operations increased by 8 million, to 68 million.

In Fixed Norway, underlying revenues decreased by 5.5 per cent in the fourth quarter of 2006, to NOK 3,867 million. During the quarter, the number of xDSL subscriptions in Norway increased by 30,000 to 572,000. Telenor's estimated market share for xDSL in the retail market was 57 per cent, in line with the previous quarter. Telenor is the market leader within broadband in Scandinavia, with a total of 1.3 million retail subscriptions at the end of 2006.

In the fourth quarter of 2006, the Nordic Broadcast business generated a revenue increase of 13 per cent compared to the previous year, reaching NOK 1,655 million. EBITDA was NOK 260 million, down from NOK 331 million in the fourth quarter of 2005. The number of direct-to-home (DTH) pay TV subscribers increased by 14,000 in the fourth quarter of 2006, reaching 943,000, while the number of cable TV subscribers increased by 5,000 to 696,000.

The table below contains key figures from the fourth quarter and the full year 2006, compared to the previous year:

(NOK in millions except earnings per share)

Q4 2006

Q4 2005

Year 2006

Year 2005


24 535


91 077


EBITDA before other income and expenses

8 186


32 992


EBITDA margin before other income an expenses(%)





Adjusted operating profit

4 110


18 271


Adjusted operating profit/Revenues (%)





Profit after taxes and minority interests (Net income)

6 184


15 899


Earnings per share, in NOK






6 095


19 036


Investments in businesses



22 124


Net interest-bearing liabilities

43 210

30 858

For more information please refer to the quarterly report on .

"During 2006, the Group's new visual identity was adopted by ten of our operations in eight countries. The distinctive brand reflects our unique approach, utilizing global scale combined with local market expertise and decision making. Our highly experienced and dedicated organisation makes me confident that we are well prepared to meet future opportunities and challenges," said Jon Fredrik Baksaas.

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

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Press and analyst conference (NB: In Barcelona)
In connection with the publication of the financial results, a press and analyst conference will be held on Thursday 15 February. Please note that the presentation starts at 10:00 hrs Norwegian time/CET . The presentation will be held in Sala A, Hall 2, Fira de Barcelona, Plaza Espaرa, Barcelona, Spain, (please also refer to ). President and CEO Jon Fredrik Baksaas and CFO Trond Westlie will present the results. All presentations will be given in English.

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The quarterly report and all presentations used during the press and analyst conference will be made available on . 07:00 and 09:45 hrs CET, respectively.