“The strong results in Norway reflect the rapid rise in customer demand for mobile data and our ability to provide relevant services supported by superior network quality and coverage. Our customers almost doubled their data usage from the second quarter last year. The extensive network expansion and increase in 4G enabled phones are the key drivers of this positive development resulting in an ARPU increase of 4% and underlying mobile revenue improvement of 6%. While the results are strong, the high investments in modern infrastructure and changes in customer expectations demand continued efficiency improvements, as well as strong efforts for building capabilities for the future,” said Jon Fredrik Baksaas, President and CEO of Telenor Group.
“In Thailand, our ability to successfully migrate customers to the new 3G network and complete the transition to a licensing regime is key to delivering high quality services as well as improving profitability. A combination of intense competition, a lower interconnect rate and weaker macro-economic development have material effect on sales this quarter. Dtac has managed to further reduce regulatory costs, and has also taken measures to increase efficiency and enhance capabilities to manage evolving market conditions and to meet customer expectations,” said Baksaas.
“I am pleased to note strong performance by our operations in Sweden and Malaysia as well as growth in Pakistan, Bangladesh and India. However, the Danish telecom market remains challenging. The operational performance this quarter underscores the benefits of a well-diversified Group,” said Baksaas.
“On the back of strong performance so far this year and our estimates for the remainder of 2014, we now expect an EBITDA margin above last year while our revenue outlook remains at low single digit organic growth. Following the shift of the satellite-related capex to next year, we adjust this year’s capex to sales ratio downwards to be in the range of 14-15%,” said Baksaas.
Key figures
The table below contains key figures for the second quarter and first half of 2014, compared to the previous year.
|
2Q |
2Q |
1H |
1H |
|
| (NOK in millions except earnings per share) |
2014 |
2013 |
2014 |
2013 |
| Revenues |
26 803 |
25 747 |
53 318 |
50 463 |
| EBITDA before other income and expenses |
9 616 |
8 857 |
18 915 |
17 280 |
| EBITDA margin before other income and expenses (%) |
35.9 |
34.4 |
35.5 |
34.2 |
| Adjusted operating profit[1] |
5 881 |
5 466 |
11 461 |
10 451 |
| Adjusted operating profit/Revenues (%) |
21.9 |
21.2 |
21.5 |
20.7 |
| Profit after taxes and non-controlling interests |
2 319 |
3 249 |
5 995 |
6 850 |
| Earnings per share from total operations, basic, in NOK |
1.54 |
2.13 |
3.98 |
4.46 |
| Capex |
4 880 |
3 484 |
11 475 |
6 351 |
| Capex excl. licences and spectrum |
3 985 |
3 484 |
7 679 |
6 351 |
| Capex excl. licences and spectrum/Revenues (%) |
14.9 |
13.5 |
14.4 |
12.6 |
| Operating cash flow [2] |
5 632 |
5 374 |
11 236 |
10 929 |
| Net interest-bearing liabilities [3] |
44 387 |
31 660 |
[1]Adjusted operating profit is defined as operating profit less other income and expenses and impairment losses.
[2]Operating cash flow is defined as EBITDA before other income and expenses – Capex, excluding licences and spectrum
[3]Net interest-bearing liabilities are defined as net interest-bearing debt excluding net present value of licence liabilities.
