Preliminary annual results from Telenor
Fornebu
7 minute read
Telenors operating revenues in 2000 increased by NOK 4.077 million to NOK 37.644 million. This is 12.1 per cent higher than the year before. "This growth is very gratifying and shows that we have succeeded in achieving our goal of turning Telenor into a growth company," says Telenors president and CEO, Tormod Hermansen.
"In line with Telenors growth strategy, in 2000 the company committed considerable resources to developing the basis of future growth with regard to investments, acquisitions and starting up new activities. These commitments have considerably reduced the operating profit, which was NOK 3.629 million in 2000, NOK 373 million lower than in 1999", says Telenors CEO, Tormod Hermansen.
The pre-tax profit was NOK 2.003 million, which is NOK 1.311 million less than the year before. Despite the heavy commitment to future growth, the operating profit before depreciation (EBIDTA), adjusted for gains and losses, was at the same level as the year before.
Mobile Communications
The Mobile Communications business area enjoyed a marked advance in operating revenues and profits in 2000. In Norway, Telenor Mobil experienced both a sharp increase in subscriptions and a significantly positive result. International mobile activities, too, enjoyed strong growth. At year-end, Telenor had a total of 5.9 million subscriptions through Telenor Mobil in Norway and the Groups share of associated companies abroad. This is an increase of 2.7 million subscriptions compared with the year before.
Telecom
In 2000, the Telecom business area experienced increased competition and reduced market share. At year-end, Telenors market share, measured in traffic minutes, totalled 73 per cent, as opposed to 78 per cent at the end of the third quarter last year. The decline is primarily due to the introduction of phase 2 of carrier pre-selection reform from November 1. This means that operators that offer carrier pre-selection after this period will also charge for Internet traffic, which was previously charged by Telenor. During the fourth quarter, ASP activities in Telenor Business Solutions enjoyed a very positive trend.
Internet
In 2000, Telenor experienced strong growth in the number of Internet subscriptions in Norway, and at year-end, the Group had 625,000 Internet subscriptions in the residential market. In Europe, Telenor Internet has undertaken a series of acquisitions and greenfields under the brand name Nextra, which is now positioned in ten countries outside Norway. The increased level of activity internationally is the main result that this business area performed negatively in 2000.
Broadband Services
The Broadband Services business area increased its operating revenues by over 20 per cent. This increase is chiefly due to the sale of satellite capacity and customer growth related to various TV services.
Investments
In 2000,Telenor invested a total of NOK 50.3 billion. Of that, NOK 36.6 billion was invested abroad. The largest investments were made in the Danish mobile communications company Sonofon (NOK 14.2 billion), the German mobile communications company Viag Interkom (NOK 8.1 billion) and the Thai companies TAC and UCOM (NOK 6.4 billion).
Associated companies
After year-end, Telenor decided to sell its stakes in the mobile communications companies Viag Interkom in Germany and Esat Digifone in Ireland to British Telecom for a total of NOK 30 billion. When the Esat transaction is completed, Telenor will have a financial gain before tax of about NOK 20 billion in 2001.
The road ahead
"Telenor will also be in a growth phase in the current year. We expect to spend considerable resources in 2001 on developing and expanding new services. There will still be strong competition in the domestic market. Telenor will continue its strong international commitment and we expect an improvement in underlying earnings measured by operating profit before depreciation," says president and CEO, Tormod Hermansen.
To the editor:
The 4th quarter report in its entirety has been posted on the Internet
The presentations made by the CEO will be made available from approx. 8:00am. UMT
Short video sequences with interviews with/statements from the CEO and pictures from the press conference will be made available from approximately 10:00am. UMT
All this will be available on:
https://www.telenor.com/presscenter/4q2000/
The pre-tax profit was NOK 2.003 million, which is NOK 1.311 million less than the year before. Despite the heavy commitment to future growth, the operating profit before depreciation (EBIDTA), adjusted for gains and losses, was at the same level as the year before.
Mobile Communications
The Mobile Communications business area enjoyed a marked advance in operating revenues and profits in 2000. In Norway, Telenor Mobil experienced both a sharp increase in subscriptions and a significantly positive result. International mobile activities, too, enjoyed strong growth. At year-end, Telenor had a total of 5.9 million subscriptions through Telenor Mobil in Norway and the Groups share of associated companies abroad. This is an increase of 2.7 million subscriptions compared with the year before.
Telecom
In 2000, the Telecom business area experienced increased competition and reduced market share. At year-end, Telenors market share, measured in traffic minutes, totalled 73 per cent, as opposed to 78 per cent at the end of the third quarter last year. The decline is primarily due to the introduction of phase 2 of carrier pre-selection reform from November 1. This means that operators that offer carrier pre-selection after this period will also charge for Internet traffic, which was previously charged by Telenor. During the fourth quarter, ASP activities in Telenor Business Solutions enjoyed a very positive trend.
Internet
In 2000, Telenor experienced strong growth in the number of Internet subscriptions in Norway, and at year-end, the Group had 625,000 Internet subscriptions in the residential market. In Europe, Telenor Internet has undertaken a series of acquisitions and greenfields under the brand name Nextra, which is now positioned in ten countries outside Norway. The increased level of activity internationally is the main result that this business area performed negatively in 2000.
Broadband Services
The Broadband Services business area increased its operating revenues by over 20 per cent. This increase is chiefly due to the sale of satellite capacity and customer growth related to various TV services.
Investments
In 2000,Telenor invested a total of NOK 50.3 billion. Of that, NOK 36.6 billion was invested abroad. The largest investments were made in the Danish mobile communications company Sonofon (NOK 14.2 billion), the German mobile communications company Viag Interkom (NOK 8.1 billion) and the Thai companies TAC and UCOM (NOK 6.4 billion).
Associated companies
After year-end, Telenor decided to sell its stakes in the mobile communications companies Viag Interkom in Germany and Esat Digifone in Ireland to British Telecom for a total of NOK 30 billion. When the Esat transaction is completed, Telenor will have a financial gain before tax of about NOK 20 billion in 2001.
The road ahead
"Telenor will also be in a growth phase in the current year. We expect to spend considerable resources in 2001 on developing and expanding new services. There will still be strong competition in the domestic market. Telenor will continue its strong international commitment and we expect an improvement in underlying earnings measured by operating profit before depreciation," says president and CEO, Tormod Hermansen.
To the editor:
The 4th quarter report in its entirety has been posted on the Internet
The presentations made by the CEO will be made available from approx. 8:00am. UMT
Short video sequences with interviews with/statements from the CEO and pictures from the press conference will be made available from approximately 10:00am. UMT
All this will be available on:
https://www.telenor.com/presscenter/4q2000/