Telenor trims sales, capex outlook, raises EBITDA target

News General Scandinavia 19 JUL 2016
Telenor trims sales, capex outlook, raises EBITDA target
Telenor has lowered its annual sales growth outlook and improved its EBITDA margin target, after a mixed performance across its operations in Q2. Revenues rose slightly to NOK 32.48 billion from NOK 31.41 billion a year ago, with growth held back by difficult market conditions in Thailand and Malaysia. Organic mobile service revenue was up 4 percent, while handset sales were lower. The company now expects to report organic revenue growth of just 1-2 percent over the full year, compared to its previous forecast of 2-4 percent. 

However, Telenor raised its EBITDA margin target to around 35 percent, from 33-34 percent previously, after an improvement in Q2 to 35.5 percent from 34.1 a year ago. Total EBITDA rose to NOK 11.55 billion from NOK 10.70 billion, helped by the contribution from Myanmar, which is already reporting positive cash flow. Telenor was less pleased with its performance in India, where operating losses widened in the quarter. The company said it does not plan to participate in the upcoming spectrum auction in India, as the proposed prices do not offer a sufficient return. 

The group's net profit reached NOK 1.11 billion in Q2, down from NOK 3.46 billion a year ago due to restructuring charges for workforce reductions in a number of countries and an impairment of NOK 2.5 billion on Telenor's stake in Vimpelcom. Telenor also trimmed its forecast for capital expenditure this year, to 17 percent of revenues, excluding spectrum and licences. In the second quarter, the spending fell to 16.2 percent from 21.4 a year ago. 

Categories:

General

Companies:

Telenor,  Vimpelcom

Regions:

Asia,  Eastern Europe,  Scandinavia

Tags:

Voice services, Data services, Financial figures, Internet Access

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