Telenor Group reports first-quarter results

"During the first quarter of 2016, Telenor Group delivered 5% EBITDA and 2% revenue growth on an organic basis, and achieved a healthy operating cash flow of more than NOK 6 billion. We connected more than five million new customers as we continue to improve our network and service quality across our footprint. With intense competition in several markets, driving profitable growth and keeping a close eye on costs continues to be a priority for me and my management across our European and Asian markets,'' said Telenor Group Chief Executive Officer Sigve Brekke.

Key Figures Telenor Group

*Re-presented

Highlights FOR Q1 2016
Telenor reported first-quarter revenues of NOK 33 billion. Mobile subscription and traffic revenue growth remained healthy during the quarter at 6%, while total revenues, were impacted by lower handset sales and declining revenues from fixed legacy products. The EBITDA margin improved one percentage point to 35%. Adjusted for one-time effects, operating profit was NOK 6.4 billion, while profit after taxes and non-controlling interests was NOK 3.6 billion.

In the quarter, 5.4 million new mobile subscribers were added, of which 2.2 million in Pakistan, 1.8 million in Myanmar and 1.5 million in India. The total customer base now stands at 208 million and about 40% are active internet users.

In Myanmar, Telenor further improved its market position and the cash flow was positive after seven quarters of operations. Grameenphone in Bangladesh had a solid performance, with an EBITDA and revenue growth of 12% and 9% respectively. In Pakistan, the positive revenue momentum continued and total revenues increased by 9%.

In Norway, subscription and traffic revenues continued to grow, while total revenues dropped as a result of lower fixed revenues, as well as a decline in interconnect rates and handset sales. The EBITDA margin remained strong during the quarter. Through today's launch of new tariffs, Telenor Norway will give customers improved value and predictability, through increased data speeds, new data buckets and the removal of roaming charges within the entire EU. In Sweden, we plan to further increase our fibre investments amid rising demand. We currently serve around 1.5 million households and aim to expand our fibre offering to an additional 500,000 homes by 2020.

Fierce competition in our Thai and Malaysian markets continued in the first quarter. Digi reported solid postpaid subscriber growth from stronger data network and new price plans. In Thailand dtac's EBITDA margin widened by one percentage point due to lower handset subsidies. The network expansion programme continued, with 4,700 new sites rolled out during the quarter. 

Going forward, Telenor's key priority will continue to be securing profitable growth and cost efficiency. 

Based on the first quarter performance, the financial guidance for 2016 remains unchanged. We expect an organic revenue growth in the range of 2% to 4% and an EBITDA margin of 33% to 34%. The capex to sales ratio is expected to be 17% to 19%.

Media Contact:
Meera Bhatia, mob: (+47) 4684 4959, 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 27 April at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live via webcast, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Sigve Brekke and acting CFO Morten Karlsen Sørby will present the results. The presentation will be held in English.

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 during 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 2316 2787 and state the confirmation code: 5423054

Material
The quarterly report and the English version of the presentation will be made available here