Second quarter 2011: Steady growth and stable margins
Fornebu
9 minute read
In the second quarter of 2011, Telenor Group reported revenues of NOK 24,4 billion, representing an organic revenue growth of 7%. EBITDA before other items was NOK 7.5 billion, EBITDA margin was 31 per cent, and operating cash flow was NOK 5 billion.
"Half way into 2011, we have captured growth opportunities and delivered another quarter with 7 percent organic revenue growth combined with steady customer growth and healthy margins. The Telenor Group achieved an operating cash flow margin of 20 percent in a period with heavy investments in networks to meet the strong growth in data," said Jon Fredrik Baksaas, President and CEO of Telenor Group.
"Our mobile operations added close to 8 million subscribers during the quarter, driven by our Asian operations, similar to the first three months of this year. In the Nordics, the new service offerings launched previously this year have had positive effects. All three operations are now attracting new customers who will benefit from attractive bundles and higher data speeds. I am especially pleased to see the mobile subscriber base growing again in Norway and that the growth in data revenues continues to compensate for price pressure on voice. In June, we experienced a major network outage in Norway. The cause has been identified and corrective measures are taken to prevent similar incidents. Our Asian operations once again confirmed the strong growth momentum in the region with 21 percent organic revenue growth," Baksaas said.
"In India, the 2G licence investigations continue. Telenor is a long term telecom operator in India with already more than 20 million subscribers. The licences were awarded prior to Telenor's entry to India and we have invested according to Indian authorities' guidelines and formal approvals. Hence, we anticipate that the outcome of the legal processes should not affect our business negatively," Baksaas said.
"Going forward, we will continue to capture organic growth opportunities through providing easy-to-use and high quality services and implement ambitious efficiency measures while at the same time continue our substantial network modernisation. This quarter alone we invested more than one billion NOK in future technologies in Norway," Baksaas said.
"I am pleased to announce that we will initiate a new share buy-back programme for 2011 for approximately 3 percent of the outstanding shares based on our strong financial position. With the dividends paid in June and this new programme, we confirm our ambition to deliver a competitive shareholder remuneration," Baksaas said.
"Based on the trends so far this year, we maintain our revenue guidance for the year and expect a somewhat stronger cash flow than indicated earlier," Baksaas ended.
The table below contains key figures for the second quarter and first half year of 2011, compared to the previous year:
For more information please refer to the quarterly report on https://www.telenor.com/en/investor-relations/reports/q2-2011.
Scott Engebrigtsen, Communication Manager, Telenor Group, Tel: +47 90043484, E-mail: scott.engebrigtsen@telenor.com
In connection with the publication of the financial results, a press and analyst conference will be held on Thursday 21 July 2011 at 09:00 hrs Norwegian time/CET. The presentation will be held in Moseidsalen, building E, at Telenor's headquarters at Fornebu near Oslo. Please note the change of venue from previous quarterly presentations. President and CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will present the results. All presentations will be given in English.
The press and analyst conference will be broadcast live over the Internet, and a recorded version will be made available on https://www.telenor.com/en/investor-relations/reports/q2-2011. 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 +47 2440 from abroad.
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) 800 80 119 (from Norway) or (+47) 23 18 45 01 (from Norway or abroad).
English language versions of the full quarterly report and all presentations used during the press and analyst conference will be made available https://www.telenor.com/en/investor-relations/reports/q2-2011at 07:00 and 08:45 hrs Norwegian time/CET, respectively.
1 As of the first quarter 2010, figures for OJSC VimpelCom and Kyivstar were included with a one quarter lag.
2 Capex is defined as capital expenditures from continuing operations
3 Operating cash flow is defined as EBITDA before other income and expenses - Capex, excluding licenses and spectrum.
Added 8 million subscribers
"Our mobile operations added close to 8 million subscribers during the quarter, driven by our Asian operations, similar to the first three months of this year. In the Nordics, the new service offerings launched previously this year have had positive effects. All three operations are now attracting new customers who will benefit from attractive bundles and higher data speeds. I am especially pleased to see the mobile subscriber base growing again in Norway and that the growth in data revenues continues to compensate for price pressure on voice. In June, we experienced a major network outage in Norway. The cause has been identified and corrective measures are taken to prevent similar incidents. Our Asian operations once again confirmed the strong growth momentum in the region with 21 percent organic revenue growth," Baksaas said.
India
"In India, the 2G licence investigations continue. Telenor is a long term telecom operator in India with already more than 20 million subscribers. The licences were awarded prior to Telenor's entry to India and we have invested according to Indian authorities' guidelines and formal approvals. Hence, we anticipate that the outcome of the legal processes should not affect our business negatively," Baksaas said.
Capturing growth opportunities
"Going forward, we will continue to capture organic growth opportunities through providing easy-to-use and high quality services and implement ambitious efficiency measures while at the same time continue our substantial network modernisation. This quarter alone we invested more than one billion NOK in future technologies in Norway," Baksaas said.
New share buy-back programme
"I am pleased to announce that we will initiate a new share buy-back programme for 2011 for approximately 3 percent of the outstanding shares based on our strong financial position. With the dividends paid in June and this new programme, we confirm our ambition to deliver a competitive shareholder remuneration," Baksaas said.
Maintained outlook for 2011, stronger cash flow
"Based on the trends so far this year, we maintain our revenue guidance for the year and expect a somewhat stronger cash flow than indicated earlier," Baksaas ended.
Key figures
The table below contains key figures for the second quarter and first half year of 2011, compared to the previous year:
| Second quarter | First half year | Year | ||||
|---|---|---|---|---|---|---|
| (NOK in millions except earnings per share) | 2011 | 2010 | 2011 | 2010 | 2010 | |
| Revenues | 24 359 | 23 550 | 48 452 | 45 890 | 94 843 | |
| EBITDA before other income and expenses | 7 457 | 7 006 | 14 816 | 14 157 | 29 220 | |
| EBITDA margin before other income and expenses (%) | 30.6 | 29.7 | 30.6 | 30.8 | 30.8 | |
| Adjusted operating profit | 3 537 | 2 969 | 7 191 | 6 162 | 13 086 | |
| Adjusted operating profit/Revenues (%) | 14.5 | 12.6 | 14.8 | 13.4 | 13.8 | |
| Profit after taxes and non-controlling interests 1 | 4 492 | 9 494 | 7 285 | 10 531 | 14 333 | |
| Earnings per share from total operations, basic, in NOK | 2.77 | 5.73 | 4.48 | 6.36 | 8.69 | |
| Capex 2 | 2 714 | 3 220 | 5 324 | 5 603 | 11 688 | |
| Capex excl. licences and spectrum | 2 678 | 2 887 | 5 082 | 5 270 | 11 355 | |
| Capex excl. licences and spectrum/Revenues (%) | 11.0 | 12.3 | 10.5 | 11.5 | 12.0 | |
| Operating cash flow 3 | 4 779 | 4 119 | 9 735 | 8 887 | 17 865 | |
| Net interest-bearing liabilities | 22 165 | 25 546 | 19 276 | |||
For more information please refer to the quarterly report on https://www.telenor.com/en/investor-relations/reports/q2-2011.
Contact:
Scott Engebrigtsen, Communication Manager, Telenor Group, Tel: +47 90043484, E-mail: scott.engebrigtsen@telenor.com
To the editorial offices:
Press and analyst conference
In connection with the publication of the financial results, a press and analyst conference will be held on Thursday 21 July 2011 at 09:00 hrs Norwegian time/CET. The presentation will be held in Moseidsalen, building E, at Telenor's headquarters at Fornebu near Oslo. Please note the change of venue from previous quarterly presentations. 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 https://www.telenor.com/en/investor-relations/reports/q2-2011. 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 +47 2440 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) 800 80 119 (from Norway) or (+47) 23 18 45 01 (from Norway or abroad).
Materials
English language versions of the full quarterly report and all presentations used during the press and analyst conference will be made available https://www.telenor.com/en/investor-relations/reports/q2-2011at 07:00 and 08:45 hrs Norwegian time/CET, respectively.
1 As of the first quarter 2010, figures for OJSC VimpelCom and Kyivstar were included with a one quarter lag.
2 Capex is defined as capital expenditures from continuing operations
3 Operating cash flow is defined as EBITDA before other income and expenses - Capex, excluding licenses and spectrum.