Telenor reported organic revenue growth of 1.5 percent in the first quarter and maintained its outlook for 2-4 percent growth over the full year. First-quarter revenues totaled NOK 33.0 billion, up from NOK 31.4 billion a year earlier as mobile subscription and traffic revenue growth of 6 percent offset lower handset sales and declining revenues from fixed legacy products.
Telenor added 5.4 million new mobile subscribers in the quarter, of which 2.2 million in Pakistan, 1.8 million in Myanmar and 1.5 million in India. The total customer base reached 208 million and about 40 percent are active internet users.
Adjusted EBITDA rose to NOK 11.7 billion from NOK 10.8 billion, driven by improvements in Myanmar and Bangladesh and positive currency effects. The margin improved one percentage point to 35 percent, ahead of the full-year target of 33-34 percent. Net profit increased to NOK 4.3 billion from NOK 3.9 billion a year ago, as forex losses and an impairment of NOK 2.3 billion in India on updated spectrum pricing and contracts was offset by a positive revaluation of the Vimpelcom stake up for sale.
Operating cash flow rose to NOK 11.2 billion, an increase of NOK 2.8 billion compared to the first quarter of 2015, thanks in part to Myanmar turning to positive cash flow. Capital expenditure increased by around NOK 0.9 billion compared to last year to NOK 5.6 billion, led by increased spending in Bangladesh and India. For the full year, Telenor maintained its outlook for spending at 17-19 percent of revenue, excluding licences and spectrum.
