News
Norway-based telco reports rise in revenue, EBITDA as customer base tops 200 million.
Telenor on Wednesday reported higher fourth quarter revenue and EBITDA on strong data uptake and customer growth, but swung to a net loss due to an impairment charge at its Danish operation.
The Norwegian incumbent ended 2015 with 203 million mobile subscribers, up from 186 million at the end of 2014, thanks largely to continued growth at its operations in Asia. Telenor’s closely-watched Myanmar unit added 1.89 million customers during the fourth quarter, leaving it with 13.68 million in total.
On the financial side, Telenor generated revenue of 33.49 billion kroner (€3.49 billion), up from NOK30.44 billion in the fourth quarter of 2014. EBITDA increased to NOK10.86 billion from NOK9.32 billion.
In a statement, Telenor said it saw "solid trends" in data usage, particularly in Norway and Sweden, which both showed positive mobile revenue growth.
However, Telenor Group swung to a NOK1.39 billion fourth quarter net loss from a year-earlier profit of NOK1.41 billion, after recording a NOK2.1 billion impairment charge on its Danish business.
Telenor was forced to abandon plans to create a joint venture with TeliaSonera in Denmark due to staunch opposition from the European Commission. Telenor indicated in October that it could leave Denmark altogether.
Meanwhile, full-year revenue grew 4.7% organically to NOK128.18 billion, while EBITDA increased to NOK44.20 billion from NOK38.50 billion in 2014.
"5% organic revenue growth and 5% organic EBITDA growth in 2015 shows the strength of our portfolio of operations," said Telenor CEO Sigve Brekke. "We are, however, entering 2016 with increased competition in some of our key markets, and it will be my key priority to secure focus on profitable growth and cost efficiency."
For 2016, Telenor expects organic revenue growth of 2%-4%, and an EBITDA margin of 33%-34%, compared to 34.5% in 2015.
