Telenor Q1 net falls 36%, misses forecasts

Michael Carroll
06 May 2010

Telenor Group missed analyst’s expectations for 1Q10 net profit, despite growing revenues 3% and increasing its global mobile subscriber base by 5 million users.

Net profit of 1.04 billion Norwegian kroner ($171m) was down 36% from a year ago, and well short of the 1.29 billion kroner analysts had predicted.

Higher taxes and changes to the firm’s accounting methods were to blame for the shortfall, the Wall Street Journal said.

However, revenue of 23.95 billion kroner was slightly higher than the 23.91 billion analysts predicted.

Telenor CEO Jon Fredrik Baksaas said the increased sales were the result of a strong performance in Nordic markets, and a recovery in Asia – particularly in India, where the firm’s Uninor joint venture reported its first full quarter of business.

Baksaas said the firm would focus on growing its distribution in India, where the firm already has 180,000 points of sale.

“To secure healthy pick-up of quality subscribers, we are continuously working on developing the distribution system.”

Overall, the firm had 179 million mobile subscribers globally by end 1Q10.

The firm predicts low single-digit growth in revenues for the rest of 2010, and an ebitda margin of 28%, down slightly from 30% in 1Q.

It also cut its full year capex forecasts from 14-16%, to 13-14%.

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