Telenor grows Q3 organic revenues 3.5%, in line with outlook

Telenor reported third-quarter revenue growth in line with its annual outlook. Revenues increased 3.5 percent on an organic basis, versus an annual target of low single-digit growth. Total revenues reached NOK 27.69 billion, up from NOK 25.95 billion a year ago, and adjusted EBITDA improved over the same period to NOK 10.26 billion from NOK 9.62 billion. Telenor said it still expects a small increase in the adjusted EBITDA margin over the full year, after a 0.8 percent increase to 36.0 percent in the first nine months of 2014. 

The operator's net profit fell to NOK 2.59 billion in Q3 from NOK 3.92 billion, hurt by weaker results from its stake in Vimpelcom and operating losses in India and Myanmar. The recently launched Myanmar service already reached 1 million subscribers by 25 October. Cash capex in the quarter rose slightly to NOK 3.91 billion, in line with the annual outlook for spending of 14-15 percent of revenue. Operating cash flow rose to NOK 6.35 billion from NOK 5.89 billion a year ago, and net debt was also higher, at NOK 40.38 billion at the end of September. 

Telenor finished the period almost 180 million customers, of which 29 percent were active internet users. The operator said it will continue to focus on offering "relevant and affordable" internet services to the entire customer base, to further stimulate and monetise demand. The number of mobile subscribers increased by 3.4 million in Q3.