Q1 2010, Telenor Group reported revenues of NOK 24 billion, representing an organic revenue growth of 3 per cent. The EBITDA margin in the first quarter of 2010 was 30 per cent, and operating cash flow margin was 20 per cent

In the first quarter of 2010, Telenor Group reported revenues of NOK 24 billion, representing an organic revenue growth of 3 per cent. The EBITDA margin in the first quarter of 2010 was 30 per cent, and operating cash flow margin was 20 per cent. Telenor’s mobile operations added 5 million subscriptions during the quarter, reaching a total of 179 million.

The Telenor Group started the year with a strong quarter. Current trends in the Asian and Nordic regions are positive and I am pleased to see that the Telenor Group had a rebound in organic revenue growth. Operating cash flow was close to NOK 5 billion due to a combination of strong financial results and good capital discipline,” said Jon Fredrik Baksaas, President and CEO of Telenor.

VimpelCom Ltd. – a milestone
“The successful completion of the VimpelCom Ltd. transaction was a milestone for the Telenor Group. The VimpelCom Ltd. share started trading on the New York Stock Exchange on 22 April 2010 and the market value of Telenor Group’s 39.6 per cent economic stake in the company was approximately NOK 55 billion after the first day of trading. VimpelCom Ltd.’s strong operations, combined with a significantly improved governance structure, are a good foundation for future value creation,” Baksaas said.

Strong performance in Nordic region

“Our operations in the Nordic region continued their strong performance, driven by positive development in the mobile businesses. During the last year, we saw increased demand for user-friendly smartphones, boosting mobile data usage and revenues. While executing the planned upgrades of mobile networks in all Nordic markets we expect to maintain annual operating cash flow at around NOK 10 billion,” Baksaas said.

Recovery in Asia
“The established Asian operations confirmed the recovery in this region with a positive trend in financial performance this quarter. In India, we are pleased to see that the roll-out activities continued at high speed. Network quality is already high in the circles where we have launched, and 180,000 points of sale and around 2,500 employees are in place to support Uninor’s development in the market. In this initial phase, we are experiencing some challenges. To secure healthy pick-up of quality subscribers, we are continuously working on developing the distribution system,” Baksaas said.

Revised outlook
“As a result of recovery in Asia and improved performance in the Nordic region, we expect a slightly stronger EBITDA margin for 2010 compared to our previous outlook. In addition, we revise our expected capex to sales ratio slightly downwards, following the development in Uninor and lower overall investments during the first quarter,” Baksaas ends.

http://www.telenor.com/en/news-and-media/press-releases/2010/first-quart...