Telenor ASA announces financial results for 1st quarter 2007

Continued high underlying revenue growth

Fornebu, May 4, 2007 – In the first quarter of 2007, Telenor's revenues increased by 5 per cent compared to the first quarter of 2006, reaching NOK 22.4 billion. The underlying revenue growth was 12 per cent. EBITDA before other income and expenses was NOK 7.1 billion while profit before taxes was NOK 4.2 billion.
"I am very pleased to present a good underlying performance for the Group, with continued high growth in revenues and subscriptions. Our consolidated mobile operations added more than 6 million subscriptions. However, Telenor's results are affected by the fact that we are not able to include Kyivstar, since the existing injunctions in Ukraine are prohibiting us from receiving financial information," said President and CEO of Telenor, Jon Fredrik Baksaas.

Mobile operations

"DiGi in Malaysia continues its excellent performance. Telenor Pakistan is growing even faster than we expected, increasing revenue per subscription and thereby delivering break-even on EBITDA. Sonofon in Denmark is delivering another solid quarter. In Bangladesh, increased competition and price reductions have led to lower growth. Grameenphone in Bangladesh is currently investigating opportunities for an initial public offering in Dhaka," said Jon Fredrik Baksaas.



In Fixed Norway, total underlying revenues decreased by 5.7 per cent in the first quarter of 2007 compared to the first quarter of 2006, to NOK 3,856 million. The reduction of prices for traditional telephony, aligned with VoIP, has been successful. Compared to previous quarters, fewer customers have terminated their traditional telephony subscriptions. This has contributed to reduced costs for the Norwegian fixed operation. During the quarter, the number of xDSL subscriptions in Norway increased by 22,000 to 594,000. Telenor's estimated market share for xDSL in the retail market was 57 per cent, in line with the previous quarter. Telenor is the market leader within broadband in Scandinavia, with a total of 1.4 million retail subscriptions at the end of the first quarter 2007. "I am satisfied that Fixed Norway is on track realising cost savings, improving the margin from last quarter," said Jon Fredrik Baksaas.


In the first quarter of 2007, Broadcast generated a revenue increase of 12 per cent compared to the first quarter of 2006, reaching NOK 1,700 million. EBITDA was NOK 375 million, down from NOK 408 million in the first quarter of 2006. At the end of the first quarter, the number of direct-to-home (DTH) pay TV subscribers was 944,000, while the number of cable TV subscribers was 700,000.

Key figures

The table below contains key figures from the first quarter of 2007, compared to the previous year:

Q1 2007
Q1 2006
Year 2006
(NOK in millions except earnings per share)
Group Group excl. Kyivstar Group Group excl. Kyivstar
EBITDA before other income and expenses
22 446
7 101
21 284
7 810

18 955
6 378
91 077
32 992
80 121
26 462
EBITDA margin before other income and expenses (%)
31.6 36.7 33.6 36.2 33.0
Adjusted operating profit
Adjusted operating profit/Revenues (%)
3 659
4 328
3 275
18 271

13 326

Profit after taxes and minority interests (Net income)
2 676
3 650  3 215 15 920 13 998
Earnings per share, in NOK
1.59 2.15 1.90 9.44 8.30
Investments in businesses
Net interest-bearing liabilities
3 930
42 320
3 703
8 943
34 956
2 873
8 943
33 400
19 036
22 124
43 255
15 405
22 124
43 255
For more information please refer to the quarterly report on:

Telenor: Headquartered in Oslo, Norway, Telenor is an international provider of high quality telecommunications, data and media communication services. Telenor is one of Norways largest companies with revenues in 2006 of approx. NOK 91.1 billion and a work force of 34,350 domestically and abroad. Telenor is listed at the Oslo Stock Exchange (TEL) and Nasdaq in New York (TELN).

Financial results for Telenor d.o.o.

Telenor Serbia is consolidated from 1 September 2006 and is part of "Other mobile operations" in the table on page 12.
  • The following comments are made against the fourth quarter of 2006:
  • The number of subscriptions increased by 172,000, while the estimated market share remained stable at 41%.
  • A new interconnection agreement between Telekom Serbia and Telenor Serbia was established with effect from 1 January 2007, increasing revenues in the quarter.
  • The third operator, Mobilkom Austria, has announced that it will launch its operation in Serbia in June 2007.