• Norway edition
 
Booming Telenor picks up investment pace
Photo - Telenor

Booming Telenor picks up investment pace

Published: 13 Feb 2013 17:20 GMT+01:00
Updated: 13 Feb 2013 17:20 GMT+01:00

"We now see the opportunity to accelerate investments to capture market positions and expect a (capital expenditure to sales ratio) in the range of 12-14 percent," chief executive Jon Fredrik Baksaas said.

In 2012, the operator spent about 12.1 percent of sales on investments,excluding licence and spectrum acquisitions.

As fixed telephony declines and competition in the mobile phone sectorintensifies, Telenor is increasingly focusing on high-speed Internet and data traffic for its main revenue.

In its home market Norway, which has been close to saturation for a longtime, "data traffic is perhaps the most important thing for it to continue to grow," Carnegie analyst Espen Toergersen told Norwegian television.

After launching fourth generation services in Norway last year, Telenor nowplans to do the same in Denmark in March.

The company said it expects organic sales growth of three to five percentin 2013, and a gross operating margin of around 34 percent.

For the full-year 2012, net profit rose to 9.49 billion kroner (1.29billion euros, $1.73 billion), owing primarily to favourable tax items.

Earnings before interest, tax, depreciation and amoritisation (EBITDA) roseby six percent, to 31.89 billion, while sales climbed 3.3 percent to 101.72 billion.

With some 148 million subscribers, Telenor is one of the world's biggest mobile telephony operators, offering services in a dozen countries in Europe and Asia, and in a number of others via its 37.5 percent share of Russian operator Vimpelcom.

"What's positive is that this is an operator that continues to grow, in contrast to many other competitors in Europe," Torgersen said.

"It's well-positioned in Asia, where the growth outlook is good," he added.

Last year, Telenor re-established itself in India, buying back licences insix regions. It was among eight mobile operators whose licences had been cancelled by India's Supreme Court earlier on grounds that a 2008 licence sale was under-priced.

Telenor's costly presence on the highly-competitive market has beencriticised by analysts. 

In the fourth quarter alone, its Indian unit registered an EBITDA lossbefore interest, tax, depreciation and amoritisation of 444 million kroner, but aims to break even in 2013.

The Telenor share was up by 2.85 percent in mid-afternoon trading on a largely flat Oslo exchange.

Don't miss...X
Left Right

Your comments about this article

Today's headlines
Norway name new captain for England game
Per Ciljan Skjelbred is Norway's new first team captain. Photo: Vegard Grøtt / NTB scanpix

Norway name new captain for England game

National coach Per-Mathias Høgmo has named Per Ciljan Skjelbred as Norway's new captain on Tuesday ahead of the friendly against England. READ  

Oslo and Gothenburg plan direct rail link
Oslo and Gothenburg (above) set to connect. Photo: Colorful roofs of Gothenburg Sweden

Oslo and Gothenburg plan direct rail link

Norway and Sweden have agreed to start planning a direct train connection between the cities. READ  

Five people eat deadly mushrooms in Norway

Five people eat deadly mushrooms in Norway

Five people are seriously ill after eating poisonous mushrooms on Friday. READ  

Lene Marlin reveals suicide attempt
Norwegian artist Lene Marlin. Photo: Vegard Grøtt / NTB scanpix

Lene Marlin reveals suicide attempt

Musician Lene Marlin has won praise from fans and critics after her openness about depression and a suicide attempt due to the pressures of work and fame. READ  

Øyer murder suspect back in Norway for trial
First images from inside court: Kim Andreas Kristiansen (right) with defence lawyer Geir Lippestad. Photo: Marte Christensen / NTB scanpix

Øyer murder suspect back in Norway for trial

Kim Andreas Kristiansen, the man charged with killing his step-father in Øyer, has appeared in court in Norway on Monday after being extradited from Holland. READ  

Samurai sword attack at Norway wedding
Two Norwegian wedding guests were stabbed by attackers in Skedsmo. Photo: Shutterstock

Samurai sword attack at Norway wedding

Wedding guests in the town of Skedsmo, central Norway, watched in horror as two men were attacked with a Samurai sword on Sunday. READ  

Norway's teachers' strike over as unions agree
Pupils return to Norway schools from Tuesday after teachers' conflicts resolved. Photo: Shutterstock

Norway's teachers' strike over as unions agree

Agreement has been reached about teachers' working hours, ending the strikes that have disrupted Norway for over two weeks, it was announced on Monday. READ  

Base jumper dies in Oslo ski ramp plunge
Holmenkollen ski jump in Oslo. Photo: Jon Olav Nesvold / NTB scanpix

Base jumper dies in Oslo ski ramp plunge

An unidentified person was found dead after a failed base jump at the Holmenkollen ski jump ramp in Oslo on Sunday. READ  

Plane forced to emergency land in Oslo
The Novair Airbus plane with a punctured tire performs an emergency landing in Oslo Gardermoen. Photo: Vegard Wivestad Grøtt / NTB scanpix

Plane forced to emergency land in Oslo

A plane carrying 191 passengers had to circle over Oslo for hours before emergency landing at Gardermoen airport after a suspected flat tyre after taking off on Sunday. READ  

Ebola threat to Norway: Sweden fears first case

Ebola threat to Norway: Sweden fears first case

Sweden has confirmed a suspected case of Ebola on Sunday, making it possibly the first Nordic case of the virus. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Norwegian man in 7,000 litre 'Ice Truck Challenge'
Society
Norwegian brewery pulls 'fart-smelling' beer
Sport
Ødegaard: Norway's youngest player ever
Features
Meet Norway's raining kings of fashion
National
Miracle cat survives 20 gunshots in Norway
National
Second death within hours at Chess Olympics
National
Norway and Sweden mark 200 years of peace
Culture
Interview: Helene Meldahl, selfie artist
Society
Now serving ... Norway's smallest bar
Travel
Floating Northern Lights hotel planned in Norway
National
Circus camel escapes again
National
Swiss bus driver charged with careless driving in fatal Norway crash
Society
Brit's charity tractor trek heads for Norway
National
Norway lifts Segway ban
Culture
GALLERY: Ten great songs about Norway
Society
Høie promises to reform sex change law
Education
Norway fjord invaded by monster jellyfish
Culture
VIDEO: Norwegian anti-Facebook film goes viral
Culture
Norway pop duo hits number 4 on US charts
Sport
Norway fan wins big on Suarez bite bet
National
Solberg 'most chatty' leader on Twitter
Culture
British Airways takes 'Slow TV' to the skies
International
Top Norway lawyers back Snowden Nobel
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

326
jobs available