“The Telenor Group’s improved operational performance resulted in more than five per cent organic revenue growth and solid margin improvement in the second quarter. Our presence in the Nordic region and the growing Asian economies demonstrates the benefits of the geographical diversification in the Group. Our consolidated mobile operations added five million new customers during this period, bringing the subscription base above the 150 million mark,” said Jon Fredrik Baksaas, President and CEO of Telenor Group.
Improved performance in Norway
“In Norway, we continue to invest to strengthen our superior coverage position, enable new content services and manage the rapid transition to data. So far this year, we have invested two billion Norwegian kroner and expect to invest four billion this year. I am also pleased to see our Norwegian mobile operation steadily improving its performance through healthy customer growth and lower operating expenses. The migration to bundled tariffs continues and contributes to revenue growth. The decline in fixed telephony continues and requires further efforts to maintain profitability,” said Baksaas.
Strong growth and margins in Pakistan and Malaysia
“We see continued good development in Telenor Pakistan and in DiGi in Malaysia with strong growth and margins. The Broadcast business delivers another solid quarter following good performance in all areas. Challenging market conditions in Denmark and Bangladesh resulted in weaker than expected revenue development this quarter,” said Baksaas.
Re-allocation of resources in India
“Uninor in India managed to add more than two million subscribers this quarter. Impressive efforts are being made to keep up momentum during this challenging period. As a response to the uncertain regulatory environment we are now re-allocating resources to the nine most profitable circles. In this manner, we aim to shorten the time and reduce the cost for the operation to become self-financed, thereby reducing the risk of the India investment,” said Baksaas.
New buy-back programme
“For the third year in a row, we initiate a new share buy-back programme of three per cent of the outstanding shares. With this buyback programme as a supplement to the dividends paid in May a total of approximately 12.6 billion Norwegian kroner will be returned to our shareholders in 2012, thereby confirming our ambition to deliver healthy shareholder remuneration,” said Baksaas.
The table below contains key figures for the second quarter of 2012:
|(NOK in millions except earnings per share)|
|EBITDA before other income and expenses|
|EBITDA margin before other income and expenses (%)|
|Adjusted operating profit 1|
|Adjusted operating profit/Revenues (%)|
|Profit after taxes and non-controlling interests|
|Earnings per share from total operations, basic, in NOK|
|Capex excl. licences and spectrum|
|Capex excl. licences and spectrum/Revenues (%)|
|Operating cash flow 2|
|Net interest-bearing liabilities|
1 Adjusted operating profit is defined as Operating profit less other income and expenses and impairment losses.
2 Operating cash flow is defined as EBITDA before other income and expenses – Capex, excluding licenses and spectrum.
For more information please refer to the quarterly report on https://www.telenor.com/investor-relations/reports/2012/q2/
Tor Odland, Vice President, Group Communications, Tel: +47 99090872, E-mail: firstname.lastname@example.org
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 Tuesday 24 July 2012 at 09:00 hrs Norwegian time/CET. The presentation will be held in Auditorium Voice, Telenor Expo Visitors’ Centre, at the Telenor Headquarters at Fornebu outside Oslo. 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/investor-relations/reports/2012/q2/
. 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 +472440 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)23184545, and state your name and company to an automatic voicemail followed by # (pound sign). For the Q&A session: to queue up for questions please press *1.Materials
English language versions of the full quarterly report and all presentations used during the press and analyst conference will be made available at https://www.telenor.com/investor-relations/reports/2012/q2/
at 07:00 hrs Norwegian time/CET.