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Telenor hails encouraging quarterly performance

Telenor has seen its revenue in 1Q14 grow 7.2 per cent year on year to reach NOK26.5bn ($4.48bn), up from NOK24.7bn in 1Q13

Norwegian operator group Telenor has seen its revenue in 1Q14 grow 7.2 per cent year on year to reach NOK26.5bn ($4.48bn), up from NOK24.7bn in 1Q13. The group’s adjusted operating profit also grew 11.9 per cent year on year from NOK4.99bn in 1Q13 to NOK5.58bn in 1Q14.

The firm said that it added six million new subscribers during the quarter; the most that the group has seen in two years. It attributed its growth primarily to its operations in India, Pakistan and Bangladesh.

In India, the firm’s revenue grew from NOK708m in 1Q13 to NOK919m, while the operator posted a profit of NOK1.53bn, after recording an operating loss from of NOK194m in the year ago quarter.

In Bangladesh, total revenue grew from NOK1.67bn to NOK1.96m, while operating profit grew from NOK532m to NOK725m. Meanwhile in Pakistan, total revenue for the quarter grew year on year from NOK1.29bn to NOK1.4bn while operating profit surged from just NOK1m to NOK377m.

In its home market of Norway, Telenor saw a 3.48 per cent year on year growth in revenue to reach NOK3.36bn. According to CEO and president Jon Fredrik Baksaas, the operator is seeing rising demand for larger data packages, which resulted in improved mobile revenue growth of more than three per cent in the quarter.

“Competitive pressure and declining revenues from traditional fixed telephony require us to focus on streamlining our operations and investments,” he added.

Baksaas added that the group is working to increase the number of active internet subscribers across all of its markets.

“Out of our total customer base of 172 million subscribers, some 20 per cent are currently active internet users, representing a large growth potential,” said Baksaas.

“In conclusion, we had an encouraging start to the year. Our efficiency agenda is progressing, while we continue to work on bringing affordable internet to all and connecting the unconnected. However, we need to see continued improvement in all our markets, in particular a pick-up in revenues in Thailand and improved returns on the significant investments in Norway,” said Baksaas.

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