Financial results for the 4th quarter of 2009

Belgrade, Oslo, February 10, 2010 - Telenor d.o.o. achieved revenues of RSD7.93 billion (EUR81.78 million) in the fourth quarter of 2009, or 0.33% less than in the same period last year.


The company’s EBITDA decreased by 21% in the local currency, partly due to higher direct operational costs. To compensate for lower profits, capital investments were reduced by RSD1 billion.


Telenor’s network now has 2,843,000 subscribers, the same as at end-2008. The base includes only subscribers who continuously generated income for three months.


The 2009 EBITDA fell by 9% in the local currency y-o-y, while capital investments were reduced by RSD2 billion.


"Bearing in mind the current unfavourable conditions, primarily the global recession and the mobile phone use tax, we are not dissatisfied with results. Although we recorded a decrease of profits from voice services, as a direct consequence of the above mentioned tax, Telenor made huge steps in the area of mobile Internet in this quarter, resulting from constant investments into the 3G network," says Telenor CFO Gabor Kocsis.


Fourth quarter and preliminary results for 2009: All-time high cash flow of NOK 20 billion


For the full year of 2009, Telenor's reported revenues increased by 2 per cent compared to 2008, reaching NOK 97.7 billion. The operating profit was NOK 13.3 billion. Telenor's mobile operations added 2 million subscriptions during the quarter, reaching a total of 174 million.


Strong cash flow in 2009


"In 2009 the main focus within the Telenor Group has been to secure market positions while scaling our activities to a challenging business environment. The full year results demonstrate our commitment to these priorities. We had a strong operating cash flow in 2009, and the Nordic region was the main contributor with NOK 10 billion. In spite of weak macro economic conditions, our operations in Central and Eastern Europe have also delivered solid results throughout the year and the Asian operations have shown substantial improvement," said Jon Fredrik Baksaas, President and CEO of Telenor Group.


Solid EBITDA margin in Q4


 "The trends we have seen during the year continued into the fourth quarter, with a stable revenue development. In this quarter we report a solid EBITDA margin and are well aligned with our outlook for 2009. There have been improvements in the Asian region, where subscriber growth picked up in all our operations. Telenor in Pakistan continued the positive development and DTAC in Thailand delivered strong results combined with revenue recovery. The listing of Grameenphone in November has been met with overwhelming interest in the market," Baksaas said.