Mobile data and Asia driving growth
In the second quarter of 2010, Telenor Group reported revenues of NOK 25.2 billion, representing an organic revenue growth of 5 per cent. The EBITDA margin in the second quarter of 2010 was 28 per cent, and operating cash flow margin was 16 per cent. Adjusted operating profit was NOK 2.9 billion. Telenor’s mobile operations added 5.4 million subscriptions during the quarter.
“I am pleased to see that the positive trends continued into the second quarter with increasing organic revenue growth and solid margins. During the quarter our consolidated operations added 5.4 million mobile subscriptions and in Asia we had organic revenue growth of 13 per cent,” said Jon Fredrik Baksaas, President and CEO of Telenor.
Growth in Asia
“The economic environment in Asia continued to improve, fuelling the revenue growth in our operations. Increased usage of smartphones is an additional driver for growth in Thailand and Malaysia. In June, we launched services in five additional circles in India, increasing our footprint to 13 circles. We are continuously working to increase revenues and develop Uninor’s position in the market,” said Jon Fredrik Baksaas.
Increased mobile data usage
“In the Nordic region, high demand for mobile data is contributing to the solid growth in organic mobile revenues. The mobile network upgrades are on track, with pick-up in investments in the coming quarters. In addition, the work on further cost reductions will continue,” said Jon Fredrik Baksaas.
Share buy-back programme
“In order to improve Telenor’s shareholder remuneration, we have decided to initiate a share buy-back programme for approximately 3 per cent of the outstanding shares, following the announcement of the second quarter. Going forward our ambition is to ensure a healthy balance between competitive shareholder remuneration and the Group’s growth profile,” said Jon Fredrik Baksaas.
“Based on the positive trends in Asia and the Nordics, we expect organic revenue growth to be slightly higher than indicated in our previous outlook. In addition, we revise our expected capex to sales ratio downwards, following lower overall investments so far this year,” said Jon Fredrik Baksaas.