Telenor posts Q3 financial update

Norwegian operator group Telenor has seen a three per cent increase in organic revenue, during 3Q12. Revenue stood at NOK25.25bn ($4.39bn), up from NOK24.63bn in the same period a year earlier. Adjusted operating profit also grew year on year, from NOK5.36bn to NOK4.49bn.

The firm recently launched LTE services in 11 cities in Norway. President and CEO Jon Fredrik Baksaas said that the rollout is continuing at a rapid speed, and more than nine out of every ten Norwegians will have access to the firm’s 4G network in 2015.

“Telenor’s significant and long term investments in Norway enable us to deliver superior coverage and network quality, catering for the strong uptake of data services. The increased data usage and migration to bundled tariffs contributed to revenue growth this quarter,” he said.

He admitted that in Bangladesh, the firm’s subsidiary Grameenphone is experiencing intense competition and a challenging regulatory environment and warned that in Hungary, the disputed double taxation regime and other regulatory challenges pose a significant risk for the industry going forward.

Telenor Serbia, Telenor Sweden and its DTAC brand in Thailand all grew in profitability, fuelled by smartphones and mobile data demand.

“We are pleased to see that DTAC won the auction for 3G licence and spectrum. Our Broadcast unit reports record high EBITDA margin on the back of well executed cost management,” Baksaas added.

Telenor recently submitted an application for participation in the upcoming 2G licence auction in India, but Baksaas said that several key issues need to be resolved before the final decision is made on participation.

“Meanwhile, the restructuring of the Indian operation is progressing according to plan,” he added.

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