In the first quarter of 2015, Telenor Group reported revenues of NOK 30.2 billion, representing an organic revenue growth of 7.6%.
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EBITDA before other items was also at an all-time high of NOK 10.6 billion.
The EBITDA margin was 35% and operating cash flow was NOK 6 billion during the quarter. Net income was NOK 4.1 billion, implying earnings per share of NOK 2.70.
"Our performance during the first quarter reflects a promising start to the year. We reported all-time high revenues and strong organic sales growth of 8 percent.
"EBITDA grew by 5 percent organically despite start-up costs in Myanmar and continued high handset sales. We added 5.9 million mobile customers during the period and more than one third of our total 190 million subscribers are now active internet users," said Jon Fredrik Baksaas, President and CEO of Telenor Group.
"In Norway, we continue to invest in fixed and mobile network infrastructure to meet our customers’ high demands and expectations for data capacity as well as premium network coverage. Combined with user-friendly services and good execution, this has enabled us to capture data growth and increase revenues.
"Telenor Norway delivered once again solid results, with revenue growth of 6 percent in the period. This was supported by mobile data consumption that more than doubled over the last year and stronger demand for high-speed fixed internet,’’ said Baksaas.
"The turnaround plan in Thailand continues with some early signs of improvement. dtac continues to implement its cluster-based business model and strengthen its network position. dtac plans to accelerate its investment in 3G and 4G network coverage aiming to take a strong market position. Still, the company is facing intense competition with heavy handset subsidies in the prepaid customer segment.
"In Myanmar, we continue to face strong demand and reported positive EBITDA only a few months after service launch. We expanded into new areas during the first quarter, added 3 million customers and brought the total number of network sites to more than 1,700.
"In the coming quarters, we plan to ramp up network investments to cater for the strong demand for digital services in this connectivity hungry nation. While we are encouraged by the promising start in Myanmar, it is has to be noted that it is still early days.
"Telenor is committed to operate responsibly in all aspects of our business. We focus on sustainable initiatives that create long-term shared value for Telenor, our customers and society at large.
"Sound corporate governance, including the implementation and realisation of a solid compliance system in all our operations, is critical to Telenor’s business integrity and to maintaining confidence in our brand and company.
"An encouraging start to the year makes us confident that Telenor will see another good year in which more customers will benefit from mobile internet access and quality services. We are raising our organic revenue growth expectations to 5-7%, combined with a stronger EBITDA margin of 34-36%.
"The expected capex to sales ratio is now seen at 17-19% reflecting higher investments in Thailand and Myanmar in addition to the recently launched satellite." ■