Telenor Group second quarter revenues were NOK 32.5 billion. Organic mobile subscription and traffic revenues were up by 4%, while total revenues were impacted by lower handset sales.
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EBITDA was NOK 11.5 billion and the EBITDA margin improved by more than one percentage point to 35.5%. EBITDA less capex excl. licences was NOK 6.3 billion. 3.4 million mobile subscribers were added during the quarter, taking the total mobile customer base to 211 million.
In Norway, Denmark and Sweden, Telenor Group removed roaming barriers by introducing new mobile offerings enabling our customers to use their voice and data packages while travelling within the EU.
While this is impacting company's roaming revenues and costs in the short term, Telenor Group sees solid uptake on our new tariffs. The number of new high-speed broadband connections is also showing encouraging trends, both in Sweden and Norway this quarter.
Telenor Group continues investing significantly in fixed and mobile networks, and Telenor Group expects to spend more than NOK 4 billion also in 2016.
In Bangladesh, Pakistan and India the strong revenue growth continued during the quarter. Telenor Group secured additional spectrum in Pakistan and completed a major 3G network expansion in Bangladesh, facilitating continued growth in data consumption.
While market conditions remain challenging in Thailand and Malaysia, Telenor Group succeeded in the contract segment. Both dtac and Digi reported strong contract revenue growth and improving EBITDA margins this quarter.
In Myanmar, company's investments remain high to secure service quality to our 17 million customers and pave the way for further expansion and growth. The strong EBITDA has already brought cash flow into positive terrain.
Telenor Group recognizes the significant operational and financial improvement delivered by its Indian operation. Telenor Group have however, after thorough consideration, decided not to participate in the upcoming spectrum auction, as Telenor Group believe the proposed spectrum prices do not give an acceptable level of return.
Based on the performance in the first half of 2016 and the outlook for the second half, Telenor Group revised the financial guidance for 2016.
Telenor Group expects an organic revenue growth in the range of 1% to 2% and an improved EBITDA margin of around 35%. Company's expectation for the capex to sales ratio, excluding licences, is lowered to around 17%. ■