Telenor returned to profit in the first three months of 2016 by making a sales revenue of NOK 33 billion on an organic basis. This is a 1.5% increase in sales when compared to Q1 2015 when the operator made NOK 31 billion. During this quarter, the total subscriber base of the operator hit 208 million.
Telenor added 5.4 million mobile customers in Q1, of which 2.2 million in Pakistan, 1.8 million in Myanmar and 1.5 million in India.
In Myanmar, Telenor sales were up 124% after it added 1.8 million new mobile customers. Revenues were up 21% in Bangladesh and up 17.3% in Pakistan. However, revenues in Malaysia and Thailand were down by 11.2% and 3.4% respectively. The decline is primarily attributed to `fierce’ competition in the regions.
In its home market of Norway, although the subscription and traffic revenues grew, the total revenues declined by 4.4 % due to lower fixed revenues, interconnect rates and handset sales. The turnover increased by 4.6% in Sweden, in local currency sales were down due to declines in the handset and fixed telephony revenues.
Going forward, Telenor’s key priority will continue to be securing profitable growth and cost efficiency.
Based on the first quarter performance, Telenor plans to stay with the current financial guidance for 2016. The company expects an organic revenue growth in the range of 2% to 4% and an EBITDA margin of 33% to 34%. The CAPEX to sales ratio is expected to be 17% to 19%.