Telenor Revenue Rises After Strong Growth in Asia

   By Sven Grundberg 
 

Norwegian telecom operator Telenor ASA (TEL.OS) reported Wednesday a healthy increase in fourth-quarter revenue, largely on the back of strong growth in its Asian operations.

Fourth-quarter revenue rose 6.2% to 27.61 billion Norwegian kronor ($4.5 billion) from NOK25.99 billion a year ago, cementing Telenor's position as one of few major European mobile operators experiencing growth.

Net profit totaled NOK2.43 billion, against NOK2.51 billion a year ago, said Telenor, the largest telecom operator in the Nordics by market capitalization.

Earnings before interest, taxes, depreciation and amortization rose to NOK8.83 billion from NOK7.93 billion.

Growth in its main Norwegian and Swedish markets was stable and margins were sustained. The company said it was benefiting from its exposure to faster-growing developing countries, such as Malaysia, Pakistan and Bangladesh.

In the fourth quarter, it added 5 million subscribers, mainly driven by growth in India, Pakistan and Bangladesh.

The company's latest expansion is a planned roll-out of voice and data services in Myanmar, which opened up its market to foreign investment amid wide-ranging economic and political reforms.

Excluding Myanmar, Telenor said it expects "low single digit organic revenue growth" this year, while its operating margin on an Ebitda-level should remain stable. It said it planned to distribute NOK7 a share dividend to shareholders for 2013, a 17% increase from 2012.

Write to Sven Grundberg at [e-mail]; Twitter: @WSJNordics

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