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Telenor organic sales up 5% in Q4, margins under pressure
2015-02-11 09:25:00| Telecompaper Headlines
(Telecompaper) Telenor reported a strong final quarter for 2014, led by demand for smartphones and mobile data, and said it expects the organic growth to continue in 2015. Quarterly revenues rose 5 percent on an organic basis, and annual revenues were up 3 percent, in line with the company's outlook. Total revenues increased to NOK 29.11 billion in Q4 from NOK 26.33 billion a year earlier, benefiting from forex effects and the takeover in Bulgaria, as well as underlying growth at all oeprations expect Dtac in Thailand and the broadcast division, where it sold the unit Conax. Adjusted EBIDTA rose to NOK 9.09 billion from NOK 8.74 billion. Telenor said profitability was held back somewhat by handset subsidy costs, after it sold 1.5 million smartphones in the quarter. As a result, the EBITDA margin fell to 31.2 percent from 33.2 a year ago. The company's net result moved to a profit of NOK 1.77 billion from a loss of NOK 2.02 billion a year ago thanks to fewer one-time charges, and Telenor increased its dividend to NOK 7.30 per share for 2014 from 7.0 the previous year. For 2015, the operator targets mid-single digit organic revenue growth and an EBITDA margin of 33-35 percent, compared to over 35 percent in the past two years. Capex is expected at a similar ratio to sales as the 15.8 percent in 2014, excluding the costs of the broadcasting satellite.
Tags: under
sales
pressure
organic
Category:Telecommunications