Record Profits for Telenor_73
Fornebu
7 minute read
During the first quarter of 2001, the Telenor Group achieved record pre-tax profits amounting to NOK 10,666 million, derived from profits from the sale of the group's interests in VIAG Interkom. Telenor's operations during the first quarter were characterised by continued strong growth. Allowing for sales gains, operating revenues increased by NOK 1,407 million, or 16.9 percent compared with the corresponding period last year.
The strong growth continued for Telenor throughout the first quarter, with particular emphasis in the Mobile Communications business area. Allowing for sales profits, operating revenues increased by NOK 1,407 million, or 16.9 percent, during the first quarter, compared to the corresponding period last year. When sales gains are excluded, the increase in overall operating profits, before depreciation and write-downs, was 9.0 percent. This growth was achieved in spite of increased investment in the development of new activities within the Telenor Internet, Telenor Mobile Communications and Telenor Broadband Services.
Strong balance sheet
Following the sale of Telenor's interests in the mobile company VIAG Interkom, the group's balance sheet was considerably strengthened. Net interest-bearing debt at the end of the first quarter totalled NOK 20.5 billion, a reduction of NOK 20 billion since December 31. Following the sale of the group's interest in Esat Digifone, which will be entered into the balance sheet for the 2nd quarter, net interest-bearing debt will be further reduced by NOK 11.4 billion. The pre-tax profit from the sale of shares in VIAG Interkom and Esat Digifone each amounted to NOK 10.7 billion.
Telenor Mobile Communications
The Telenor Mobile Communications business area continued the trend from last year with a pronounced increase in operating revenues and profits during the first quarter. Operating revenues within the Norwegian mobile operations have increased by 23 percent, compared to the same period last year, in spite of a more competitive climate. Companies in the international mobile portpolio continue to experience strong growth in subscribers and operating revenues.
Telenor's share of subscribers in associated and jointly controlled mobile companies was 3.5 million at the end of the first quarter. This is an increase of 2.1 million subscribers compared to the same period last year. Adjusted for acquisitions and divestments during the period, the increase exceeded a million subscribers.
Telenor Telecom
Telenor stabilised its market share of the end-user market for fixed network services during the first quarter this year, in spite of continued strong competition. The group's market share is 73 percent (including Telenor Internet) measured in total traffic-minutes for fixed network telephony at the end of the quarter, the same as at the beginning of the year. Corrected for gains arising from the sales of ownership interests, operating profits prior to depreciation and write-downs, increased compared to the corresponding quarter last year.
The increase in income for Telenor Business Solutions and cost-efficiency measures in Telenor Telecom Solutions particularly contributed to this development in the first quarter.
Telenor Broadband Services
The Telenor Broadband Services business area had an increase in operating revenues amounting to 13 percent compared to the same quarter last year. This positive development is essentially due to the increase in new subscribers and the acquisition of new companies. During the last quarter the number of subscribers increased by 5 percent. The business area now has more than 2 million subscribers and is a leading distributor of pay-TV and TV-based broadband services in the Nordic region.
Telenor Internet
The growth of Internet subscriptions in Norway continued throughout the first quarter. Internationally, the business area has concentrated on the operations and development of those companies acquired during the second half of 2000. Various cost-reducing measures have also been introduced.
Investments
During the first quarter, the Telenor Group invested NOK 3.1 billion, some NOK 800 million more than during the corresponding period last year. Of this amount, NOK 2.1 billion was invested in Norway.
«The first quarter results for Telenor are exceptionally good as a result of the profits following the sale of our interests in VIAG Interkom. We are also pleased with the positive development which has characterised the first quarter. In spite of the steadily increasing competition we have consolidated our strong position in the domestic market. We are particularly pleased with the development in the mobile operations nationally and internationally, together with the significant value realised through the sales of our interests in VIAG Interkom and Esat Digifone», said CEO Tormod Hermansen in a comment on the quarterly results.
The complete quarterly report is available on the Internet: https://www.telenor.com/presscenter/1q2001/
Strong balance sheet
Following the sale of Telenor's interests in the mobile company VIAG Interkom, the group's balance sheet was considerably strengthened. Net interest-bearing debt at the end of the first quarter totalled NOK 20.5 billion, a reduction of NOK 20 billion since December 31. Following the sale of the group's interest in Esat Digifone, which will be entered into the balance sheet for the 2nd quarter, net interest-bearing debt will be further reduced by NOK 11.4 billion. The pre-tax profit from the sale of shares in VIAG Interkom and Esat Digifone each amounted to NOK 10.7 billion.
Telenor Mobile Communications
The Telenor Mobile Communications business area continued the trend from last year with a pronounced increase in operating revenues and profits during the first quarter. Operating revenues within the Norwegian mobile operations have increased by 23 percent, compared to the same period last year, in spite of a more competitive climate. Companies in the international mobile portpolio continue to experience strong growth in subscribers and operating revenues.
Telenor's share of subscribers in associated and jointly controlled mobile companies was 3.5 million at the end of the first quarter. This is an increase of 2.1 million subscribers compared to the same period last year. Adjusted for acquisitions and divestments during the period, the increase exceeded a million subscribers.
Telenor Telecom
Telenor stabilised its market share of the end-user market for fixed network services during the first quarter this year, in spite of continued strong competition. The group's market share is 73 percent (including Telenor Internet) measured in total traffic-minutes for fixed network telephony at the end of the quarter, the same as at the beginning of the year. Corrected for gains arising from the sales of ownership interests, operating profits prior to depreciation and write-downs, increased compared to the corresponding quarter last year.
The increase in income for Telenor Business Solutions and cost-efficiency measures in Telenor Telecom Solutions particularly contributed to this development in the first quarter.
Telenor Broadband Services
The Telenor Broadband Services business area had an increase in operating revenues amounting to 13 percent compared to the same quarter last year. This positive development is essentially due to the increase in new subscribers and the acquisition of new companies. During the last quarter the number of subscribers increased by 5 percent. The business area now has more than 2 million subscribers and is a leading distributor of pay-TV and TV-based broadband services in the Nordic region.
Telenor Internet
The growth of Internet subscriptions in Norway continued throughout the first quarter. Internationally, the business area has concentrated on the operations and development of those companies acquired during the second half of 2000. Various cost-reducing measures have also been introduced.
Investments
During the first quarter, the Telenor Group invested NOK 3.1 billion, some NOK 800 million more than during the corresponding period last year. Of this amount, NOK 2.1 billion was invested in Norway.
«The first quarter results for Telenor are exceptionally good as a result of the profits following the sale of our interests in VIAG Interkom. We are also pleased with the positive development which has characterised the first quarter. In spite of the steadily increasing competition we have consolidated our strong position in the domestic market. We are particularly pleased with the development in the mobile operations nationally and internationally, together with the significant value realised through the sales of our interests in VIAG Interkom and Esat Digifone», said CEO Tormod Hermansen in a comment on the quarterly results.
The complete quarterly report is available on the Internet: https://www.telenor.com/presscenter/1q2001/