Telenor's 4th quarter and prelim 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.

Nordic region

In Norway, Telenor had strong performance in 2009, particularly within the mobile area where the demand for mobile broadband was one of the main revenue drivers. The recently announced vendor agreements for mobile infrastructure in the Nordic region will secure enhanced customer experience and profitability on mobile broadband in the years to come.

VimpelCom Ltd. launched tender offer

The process of combining Kyivstar and OJSC VimpelCom into a new leading emerging markets mobile operator VimpelCom Ltd. is on track. We expect to finalise the transaction around mid 2010.

Milestone in India

The successful launch of operations in India in December was a significant milestone for the Telenor Group in 2009, marking the completion of the first phase of the Uninor launch activities. Brand awareness and 1 million subscribers within the first weeks of operations provide a good basis for the next launch phase. To develop Uninor according to plan will be among our main priorities in 2010.

Dividends proposed for 2009

As a result of our strong execution in 2009, combined with the fact that we have received dividends from Kyivstar and OJSC VimpelCom of around NOK 5 billion, the Board of Telenor has decided to propose dividends for the year of 2009 of NOK 2.50 per share.

Focus areas in 2010

“Moving into 2010, the Telenor Group will strive to secure our market positions, while capturing organic growth opportunities. We will continue to implement necessary efficiency measures and provide innovative and viable solutions to our customers,” Baksaas ends.

Key figures

The table below contains pro forma key figures (including Kyivstar) for the fourth quarter and full year of 2009, compared to the previous year:

Fourth quarter Year
(NOK in millions except earnings per share 2009 2008 2009 2008
Revenues 26 263 29 403 106 672 109 970
EBITDA before other income and expenses 8 109 9 830 36 766 38 491
EBITDA margin before other income and expenses (%) 30.9 33.4 34.5 35.0
Adjusted operating profit 3 928 5 338 20 081 22 640
Adjusted operating profit/Revenues (%) 15.0 18.2 18.8 20.6
Net income attributable to equity holders of Telenor ASA 2 493 1 963 8 979 13 065
Earnings per share from total operations, basic, in NOK 1.51 1.18 5.42 7.83
Capex 5 798 7 239 17 123 22 715
Capex excl. licences and spectrum 5 798 6 754 17 123 20 680
Capex excl. licences and spectrum/Revenues (%) 22.1 23.0 16.1 18.8
Operating cash flow 2 311 3 076 19 643 17 811
Net interest-bearing liabilities 25 496 39 309

The main reason for the decline in the operating profit is the impairment of goodwill in Telenor Serbia of NOK 1,970 million during the second quarter. For more information please refer to the quarterly report on www.telenor.com/en/investor-relations/reports/q4-2009.

Source: Telenor

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