Bangkok--11 Feb--Hill and Knowlton
In the fourth quarter of 2010, Telenor Group reported revenues of NOK 24.9 billion, representing an organic revenue growth of eight per cent. EBITDA before other items was NOK 7.2 billion, EBITDA margin was 29 per cent, and operating cash flow margin was 14 per cent. For the full year of 2010, Telenor's revenues was NOK 94.8 billion, EBITDA before other items was NOK 29.2 billion, EBITDA margin was 31 per cent and operating cash flow margin was 19 per cent. Telenor's consolidated mobile operations added close to eight million subscriptions during the fourth quarter and 23 million during the year[1].
"Telenor confirms its position as one of Europe's fastest growing telcos, with organic revenue growth of 8% and strong operational performance. In 2010, the Telenor Group had an operating cash flow of NOK 18 billion and a solid EBITDA margin," said Jon Fredrik Baksaas, President and CEO of Telenor Group.
All-time high shareholder remuneration
"The share buyback programme for 2010 was completed in the fourth quarter. Together with the dividends paid out in May 2010 this resulted in an all-time high shareholder remuneration of NOK 9 billion. Based on the strong financial performance the Management and the Board of Directors propose a dividend of NOK 3,80 per share for 2010, a pay-out ratio in the high end of the dividend policy range," Baksaas said.
Operational excellence
"Our operational excellence programmes are progressing towards the ambitious targets announced in 2010. Going forward, we expect significant long term effects from the ongoing investments in network modernisations. Our ambition is to improve efficiency and enhance customer experience through high quality services," Baksaas said.
13% growth in Asia, overall satisfactory in Nordic and CEE regions
"The established Asian operations reported 13% organic revenue growth in the fourth quarter and obtained an operating cash flow above NOK 10 billion for 2010. Uninor in India added more than four million subscriptions in the fourth quarter and I am pleased to see that our go-to-market model is gradually improving. India is a very competitive market coupled with a challenging regulatory environment, and we are focusing strongly on establishing Uninor as an ultra low cost operator," Baksaas said.
“I am very satisfied with the performance of Telenor Group’s Asian Operations in 2010. Over the year Telenor Group companies added more than 23 million subscribers in Asia. In addition to this strong customer growth, a solid operational performance resulted in an operating cash flow above NOK 10 billion. This makes 2010 one of the best years in our 15 year Asian history”, said Sigve Brekke, Executive Vice President of Telenor Group and Head of Telenor Asia.
VimpelCom
"In January, the Supervisory Board of VimpelCom approved the acquisition of Wind Telecom, and VimpelCom management said it would schedule a shareholders meeting to approve the issuance of new shares in connection with the transaction. In December, Telenor announced its opposition to the transaction because, from Telenor's perspective, it was not strategically nor financially sound for VimpelCom shareholders. At this stage, we believe it is essential that VimpelCom focus on regaining a loss of momentum in the Russian market. On 28 January, Telenor commenced arbitration proceedings against VimpelCom and Altimo to secure Telenor pre-emptive rights and avoid dilution in the event the transaction is completed," Baksaas ends.
Key figures
The table below contains key figures for the fourth quarter and full year of 2010, compared to the previous year. For more information please refer to the quarterly report.
Fourth quarter Year
(NOK in millions except earnings per share) 2010 2009 2010 2009
Revenues 24 858 22 418 94 843 90 748
EBITDA before other income and expenses 7 179 6 933 29 220 30 670
EBITDA margin before other income and expenses (%) 28.9 30.9 30.8 33.8
Adjusted operating profit 3 034 3 146 13 086 15 765
Adjusted operating profit/Revenues (%) 12.2 14.0 13.8 17.4
Profit after taxes and non-controlling interests 2 104 2 167 14 334 8 653
Earnings per share from total operations, basic, in NOK 1.29 1.31 8.69 5.22
Capex 3 783 5 455 11 688 15 722
Capex excl. licences and spectrum 3 783 5 455 11 355 15 722
Capex excl. licences and spectrum/Revenues (%) 15.2 24.3 12.0 17.3
Operating cash flow 3 395 1 478 17 865 14 948
Net interest-bearing liabilities 19 276 26 332
Telenor Group is an international provider of tele, data and media communication services. Telenor Group has mobile operations in 11 markets in the Nordic region, Central and Eastern Europe and in Asia, as well as an economic stake of 39.6 per cent in VimpelCom Ltd., operating in 10 markets. Headquartered in Norway, Telenor Group is one of the world’s major mobile operators with 203 million mobile subscriptions (111 million in consolidated operations and 92 million in VimpelCom Ltd per Q4 2010), revenues in 2010 of NOK 95 billion, and a workforce of approximately 33,200 employees. For more information about Telenor Group, please visit www.telenor.com
For further information, please contact
Glenn Mandelid, Communications Manager, Telenor Asia
Phone (+66) 82440 1122, E-mail:
[email protected]
James Rowland-Jones, Account Manager, Hill and Knowlton (Thailand)
Phone (+66) 02 6273501 ext 206, E-mail:
[email protected]