Telenor second quarter: continued growth and increased margins

Press release
Fornebu
5 minute read
Telenor's second quarter results for 2002 are characterised by continued growth, particularly in the international mobile operations. Telenor Mobile now has in excess of ten million mobile subscriptions (pro rata). In Norway, a strong focus on operational efficiency has contributed to improved margins and lower investments in the fixed and mobile networks. "As well as expecting further growth in our mobile operations, we are now fully committed to rationalizing operations and reducing expenses and investments in the group. Telenor has a strong balance sheet and is well positioned for further development and value creation, particularly in our mobile operations outside Norway," said President and CEO Jon Fredrik Baksaas.

Telenor's revenues in the second quarter of 2002 were NOK 12,011 million, which is an increase of 19.5 per cent or NOK 1,956 million compared to the same period in the previous year. In the first half-year, the revenues increased by NOK 3,518 million compared to the same period last year, or 17.5 per cent, to NOK 23,547 million.

EBITDA (operating profit before depreciation, amortization and write-downs) increased in the second quarter by 46.0 per cent to NOK 3,212 million compared to the same period in the previous year. EBITDA for the first half year was NOK 6,112 million, which is an increase of NOK 1,315 million, or 27.4 per cent, compared to the first half of 2001.

Operating profit increased in the second quarter by NOK 1,000 million to NOK 691 million compared to the same period in the previous year [1] . In the first six months of the year operating profit increased by NOK 616 million to NOK 1,293 million compared to the same period in the previous year.

Profit before taxes and minority interests was NOK 383 million in the second quarter and NOK 414 million in the first half year 2002. Profit before taxes and minority interests in the second quarter and the first six months of 2001 of NOK 1,428 million and NOK 12,094 million respectively, were influenced by significant sales gains and write-downs.

The Telenor Mobile business area had a total EBITDA in the second quarter of NOK 1,774 million excluding gains and losses, which is equal to a growth of 115 per cent compared to the second quarter in the previous year. The EBITDA margin in the Norwegian activity increased by three percentage points to 39.5 per cent. The average revenue per user (ARPU) in Norway increased i from NOK 337 in second quarter last year to NOK 351 in the second quarter this year. At the end of the second quarter Telenor's pro rata share of mobile subscriptions, including Norway, was 10.4 million.

Telenor Networks had an EBITDA margin of 34.2 per cent in the second quarter, an increase compared to the second quarter last year of more than one percentage point. "Telenor Business Solutions shows a continued significant improvement in profit despite the weak IT related market. In Telenor Plus, expenses linked to ADSL have affected the result negatively, but we expect a positive EBITDA in this business area for the year as a whole," said President and CEO, Jon Fredrik Baksaas.

Net interest-bearing liabilities at the end of the second quarter were NOK 25.7 billion, and the equity ratio was 48 per cent.

Contact:

Chief Press SpokesmanDag Melgaard,

tel.: +47 67 89 26 71 or +47 901 92 000

Full report and presentations available at: www.telenor.com

[1]The figure was negative last year