Fourth quarter and preliminary results for the year 2006: Strong growth completed an outstanding year
"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.
Fixed
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.
Broadcast
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 |
Revenues | 24 535 | 18860 | 91 077 | 66566 |
EBITDA before other income and expenses | 8 186 | 6678 | 32 992 | 23530 |
EBITDA margin before other income an expenses(%) | 33.4 | 35.4 | 36.2 | 35.3 |
Adjusted operating profit | 4 110 | 3559 | 18 271 | 12249 |
Adjusted operating profit/Revenues (%) | 16.8 | 18.9 | 20.1 | 18.4 |
Profit after taxes and minority interests (Net income) | 6 184 | 1695 | 15 899 | 7646 |
Earnings per share, in NOK | 3.68 | 1.00 | 9.43 | 4.47 |
Capex | 6 095 | 6436 | 19 036 | 16439 |
Investments in businesses | 20 | 2720 | 22 124 | 8858 |
Net interest-bearing liabilities | 43 210 | 30 858 |
For more information please refer to the quarterly report on www.telenor.com/ir .
"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.
Contact:
Vice President Corporate Communications, Scott Engebrigtsen
Tel: +47 90043484, E-mail scott.engebrigtsen@telenor.com
To the editorial offices:
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 http://www.3gsmworldcongress.com ). 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 www.telenor.com/ir . 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 www.telenor.com/ir .
Conference call and Q&A
The press and analyst conference will also be available as a conference call. This service allows participants to ask questions at a concluding Q&A session, which will be held immediately after the presentations 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).
Materials
The quarterly report and all presentations used during the press and analyst conference will be made available on www.telenor.com/ir . 07:00 and 09:45 hrs CET, respectively.