Third quarter 2011: Strong performance continues
Fornebu
7 minute read
In the third quarter of 2011, Telenor Group reported revenues of NOK 24.6 billion, representing an organic revenue growth of 7%. EBITDA before other items was NOK 8.3 billion, EBITDA margin was 34 per cent, and operating cash flow was NOK 5.5 billion. Telenor's consolidated mobile operations added more than five million subscriptions during the quarter.
"I am pleased to see that in a world of slowing growth and rising risks, Telenor's financial performance continues to improve. The third quarter of 2011 showed that Telenor's geographical footprint enables us to grow our business in a manner which yields solid return from mature markets at the same time as we are growing in emerging markets," said Jon Fredrik Baksaas, President and CEO of Telenor Group.
"Uninor in India is starting to show EBITDA improvement and is on track towards becoming an ultra low cost operator. The regulatory framework is still unclear and we urge Indian authorities to provide clarity shortly. The authorities should demonstrate their commitment to the industry and move the process forward," Baksaas said.
"We welcome VimpelCom management's communicated focus on operational performance, debt repayment and shareholder remuneration," Baksaas said.
For the 10th year in a row, Telenor Group has been named one of the top performers on the Dow Jones Sustainability Indexes, the world's most comprehensive annual analysis of corporate sustainability performance. Sustainable growth is an important part of the 'Telenor way' of doing business and I am pleased that our efforts to extend the wider benefits of telecommunications are recognised," Baksaas said.
"Despite global macro economic turbulence and floods in Asia, our operations have so far remained resilient. We adjust our guidance for 2011 based on solid performance the first nine months and expectations for the rest of the year," Baksaas said.
The table below contains key figures for the third quarter of 2011, compared to the previous year:
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.
For more information please refer to the quarterly report on https://www.telenor.com/en/investor-relations/reports/q3-2011.
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 Wednesday 26 October 2011 at 09:00 hrs Norwegian time/CET. The presentation will be held in Auditorium A, 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.
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/q3-2011. 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 99454510 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 at https://www.telenor.com/en/investor-relations/reports/q3-2011 at 07:00 hrs Norwegian time/CET.
EBITDA improvement in Uninor
"Uninor in India is starting to show EBITDA improvement and is on track towards becoming an ultra low cost operator. The regulatory framework is still unclear and we urge Indian authorities to provide clarity shortly. The authorities should demonstrate their commitment to the industry and move the process forward," Baksaas said.
VimpelCom
"We welcome VimpelCom management's communicated focus on operational performance, debt repayment and shareholder remuneration," Baksaas said.
Top sustainability performance
For the 10th year in a row, Telenor Group has been named one of the top performers on the Dow Jones Sustainability Indexes, the world's most comprehensive annual analysis of corporate sustainability performance. Sustainable growth is an important part of the 'Telenor way' of doing business and I am pleased that our efforts to extend the wider benefits of telecommunications are recognised," Baksaas said.
Adjusted guidance for 2011
"Despite global macro economic turbulence and floods in Asia, our operations have so far remained resilient. We adjust our guidance for 2011 based on solid performance the first nine months and expectations for the rest of the year," Baksaas said.
Key figures
The table below contains key figures for the third quarter of 2011, compared to the previous year:
| (NOK in millions except earnings per share) | Third quarter | Year | |
| 2011 | 2010 | 2010 | |
| Revenues | 24 631 | 24 069 | 94 843 |
| EBITDA before other income and expenses | 8 292 | 7 885 | 29 220 |
| EBITDA margin before other income and expenses (%) | 33.7 | 32.7 | 30.8 |
| Adjusted operating profit | 4 493 | 3 891 | 13 086 |
| Adjusted operating profit/Revenues (%) | 18.2 | 16.1 | 13.8 |
| Profit after taxes and non-controlling interests 1 | 2 589 | 1 698 | 14 333 |
| Earnings per share from total operations, basic, in NOK | 1.62 | 1.03 | 8.69 |
| Capex 2 | 2 760 | 2 302 | 11 688 |
| Capex excl. licences and spectrum | 2 760 | 2 302 | 11 355 |
| Capex excl. licences and spectrum/Revenues (%) | 11.2 | 9.6 | 12.0 |
| Operating cash flow 3 | 5 533 | 5 583 | 17 865 |
| Net interest-bearing liabilities | 19 276 | ||
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.
For more information please refer to the quarterly report on https://www.telenor.com/en/investor-relations/reports/q3-2011.
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 Wednesday 26 October 2011 at 09:00 hrs Norwegian time/CET. The presentation will be held in Auditorium A, 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/en/investor-relations/reports/q3-2011. 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 99454510 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 at https://www.telenor.com/en/investor-relations/reports/q3-2011 at 07:00 hrs Norwegian time/CET.