The telco revenues grow 5% year-over-year in the quarter
Norwegian telecommunications group Telenor ended the first quarter of 2016 with 208 million subscribers in the 12 European and Asian markets in which it operates. During the period, the telco added a total of 5.4 million subscribers.
In Norway, the number of mobile subscriptions decreased by 34,000 during the quarter, mainly from a reduction in the number of data cards and prepaid subscriptions. At the end of the first quarter, the subscription base was 2% lower than last year.
“With intense competition in several markets, driving profitable growth and keeping a close eye on costs continues to be a priority for me and my management across our European and Asian markets,” Telenor’s CEO Sigve Brekke said.
Telenor Group’s six Asian operations generated more than 50% of the group’s total revenues in Q1 and Norway and the rest of Europe about 20% each. In Asia, the European telecoms firm operates in India, Pakistan, Bangladesh, Malaysia, Thailand and Myanmar. In Europe, Telenor has mobile telephony operations in Norway, Denmark, Sweden, Hungary, Montenegro, Bulgaria and Serbia.
The Nordic carrier generated revenues of 33 billion Norwegian krone ($4.1 billion) in the first quarter of the year, up 5% compared to 31.4 billion Norwegian krone in the same quarter the previous year.
Telenor’s net income for the period amounted to 5 billion Norwegian krone, compared to a net profit of 4.8 billion krone in Q1 2015.
Telenor’s capital expenditures excluding licenses and spectrum totaled 5.54 billion Norwegian krone in the quarter, up from 4.65 billion krone in the year-ago period. In Q1, capital expenditures accounted for 16.8% of total revenues.
In Norway, capital expenditures totaled 908 million krone in Q1, up from 848 million krone in the same period in 2015.
“Capital expenditure [in Norway] was driven by continued 4G network expansion and fixed high-speed broadband roll-out, in combination with transformation initiatives within the fixed business,” Telenor said in a statement.
The company said that for full 2016, capital expenditures excluding licenses and spectrum will represent 17% to 19% of Telenor’s overall revenues.
The operator has 4G LTE operations in all of its European units. In Asia, the telco offers 4G LTE services in Malaysia and Thailand.