“During the third quarter, we continued to drive profitability and revenue growth and reported the best quarter ever in terms of EBITDA and operating cash flow. We added 3.4 million new mobile subscribers during the period, fuelled by customer uptake in India, Bangladesh, Malaysia and our newest market Myanmar,’’ said Jon Fredrik Baksaas, President and CEO of Telenor Group.
“Our extensive 4G network expansion in Norway combined with an increased number of 4G enabled devices fuelled consumers’ appetite for data and resulted in robust revenue growth in the quarter. Ever-evolving customer expectations require further investments and strong focus on efficient operations in Norway,’’ said Baksaas.
“In Thailand, revenue and subscription growth were impacted in the quarter as a direct result of intensified competition and a slow economic recovery. To meet strong demand for internet services, mobile data and match fast-changing consumer lifestyles, dtac is stepping up its investment in 3G and 4G networks. The migration to the new 3G licence continues to drive regulatory cost savings. Ongoing disputes remain part of the business environment in Thailand, which we will continually work to address,’’ said Baksaas.
“At the end of September, we launched our services in Myanmar, bringing our first customers online. Telenor started in the nation’s second-largest city of Mandalay and thereafter moved towards the metropolitan hubs of Nay Pyi Taw and Yangon. We will proceed to connect the unconnected in more towns, villages as well as rural areas and look forward to providing essential infrastructure to the people of Myanmar. On 25 October we passed the 1 million subscriber mark and we are confident this promising trend will continue,” said Baksaas.
“We will carry on with our relentless efforts to drive profitable growth from increased internet consumption. Out of our total customer base of close to 180 million subscribers, some 29 percent are currently active internet users. To capture this growth potential, we will continue to offer affordable and relevant services, thereby stimulating demand and consequently monetizing internet usage,’’ said Baksaas.
“Based on the performance so far this year and our expectations for the remainder of 2014, we maintain our full-year guidance. As previously communicated, we expect an EBITDA margin above last year and low single digit organic revenue growth,” said Baksaas.
Key figures
The table below contains key figures for the third quarter of 2014, compared to the previous year.
| 3Q | 3Q | |
| (NOK in millions except earnings per share) | 2014 | 2013 |
| Revenues | 27 685 | 25 953 |
| EBITDA before other income and expenses | 10 263 | 9 619 |
| EBITDA margin before other income and expenses (%) | 37.1 | 37.1 |
| Adjusted operating profit[1] | 6 391 | 6 281 |
| Adjusted operating profit/Revenues (%) | 23.1 | 24.2 |
| Profit after taxes and non-controlling interests | 2 586 | 3 917 |
| Earnings per share from total operations, basic, in NOK | 1.72 | 2.59 |
| Capex | 4 808 | 5 589 |
| Capex excl. licences and spectrum | 3 914 | 3 730 |
| Capex excl. licences and spectrum/Revenues (%) | 14.1 | 14.4 |
| Operating cash flow [2] | 6 349 | 5 889 |
[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 licences and spectrum
Media Contact:
Meera Bhatia, Tel: (+47) 46844959, E-mail: meera.bhatia@telenor.com
Press and analyst conference
In connection with the publication of the financial results, a press and analyst conference will be held on Wednesday 29 October at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live over the Internet, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will present the results. The presentation will be held in English.
Internet and mobile broadcast
The press and analysts conference will be broadcast live over the Internet, and will also be available as a recording after the conference. The live service also allows for written questions to be submitted. In addition, the conference will be available live and as a recording on mobile phones – for access, SMS expo to 2440 or (+47) 2440 from abroad.
Conference Call and Q&A
You may also call in and listen to the presentation over the phone. This service allows you to ask questions at the Q&A session at the end of the presentation. To participate in the conference call, please register before the conference starts by calling +47 23162787 and state the confirmation code: 8753269
Material
The quarterly report and English versions of the presentations will be made available here http://www.telenor.com/investors/reports/2014/telenors-results-for-the-3rd-quarter-2014/