Booming Telenor picks up investment pace

Norwegian telecom operator Telenor on Wednesday posted a 32-percent rise in 2012 profits and said it would increase its investment pace this year, primarily in the lucrative data traffic sector.

Booming Telenor picks up investment pace
Photo - Telenor

"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.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Today in Norway: A roundup of the latest news on Tuesday

Found out what’s going on in Norway on Tuesday with the Local’s short roundup of important news.

Today in Norway: A roundup of the latest news on Tuesday
The northern lights in Tromsø. Photo by Lightscape on Unsplash

One in ten international students in Norway has had Covid-19

Ten percent of overseas students studying in Norway, compared to just 2.9 percent of Norwegian students, have had Covid-19, according to the Students Health and Well Being Survey (SHoT).

Some 62,000 thousand of Norway’s 300,000 students responded to the survey.

READ MORE: Are Norway’s Covid-19 numbers on track for reopening?

Overall, nearly three percent said that they been infected with the Coronavirus, just over half have had to self isolate, and 70 percent took tests.

Woman in her 40’s charged with murder

A woman has been charged with murder in Halden, southeast Norway after a body was found in an apartment in the towns centre.

She will be questioned on Tuesday. A public defender has been appointed. 

Six police cars attended the scene at a small housing association in the centre of Halden.

A person found in the same apartment is being questioned as a witness.

Network provider Telenor’s revenues down 2.1 billion kroner compared to last year

Telenor’s revenues are down 2.1 billion in the first quarter and the company has written of its 6.5 billion kroner investment in Myanmar following Februarys military coup.

The mobile network operator became one of the first foreign providers in the country and had gained a 35 percent market share.

However, the country’s new military regime shut down the mobile network on March 15th.

“In Myanmar, we are experiencing a confusing and uncertain situation. We are deeply concerned about the development in the country,” The company stated in its quarterly report.

Norway and Sweden in reindeer border dispute

Swedish Sami reindeer herders will appear in court this week in a case against the Ministry of Agriculture and Food.

The Swedish Sami herders believe they have exclusive rights to grazing areas across the Norwegian border because they have lived in the surrounding area for hundreds of years. The Norwegian government rejects these claims.

The reindeer grazing convention will be central to the case; the convention facilitates mutual cross-border grazing for reindeer herds.

Sweden withdrew from the convention in 2005. However, Norway enshrined the convention in law in 2005.

483 Coronavirus infections recorded

On Monday, 483 new cases of Covid-29 were registered, an increase of 75 compared to the average of the previous week.

READ ALSO: Norway considers lifting measures for people who have had their first Covid vaccine 

This is down from 1150 cases registered during the peak of Norway’s third wave on March 16th.

This is partly because fewer infections are registered during weekends and public holidays, causing an uptick on Mondays.