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Norway's Telenor reports 16 pct rise in Q3 profit

Norway's Telenor reports 16 pct rise in Q3 profit

Norwegian telecommunications group Telenor ASA on Thursday reported a 16 percent rise in third-quarter profit, as strong returns in its Asian markets offset declining profits in the troubled Eastern European operations.
Net profit climbed to 3.5 billion kroner ($610 million) in the third quarter from 3 billion kroner a year earlier. The group drew revenues of 24.3 billion kroner in the July through September period, up slightly from 23.4 billion kroner in the same period in 2008.
A strong quarter in Telenor's Pakistani and Bangladeshi operations and new subscriptions in Scandinavia contributed to a sustained revenue stream.
However, the company took a hit in Ukraine and Serbia, where the global financial crunch has depressed the telecoms market.
Telenor shares rose 4.7 percent to 73.40 kroner ($12.78) in morning trading on the Oslo stock exchange.
Martin Hoff, an analyst at Arctic Securities, said the result beat the market's expectations and that the cash flow was "very strong."
Telenor announced earlier this month that it was ending its long-standing _ and expensive _ legal battle with Russian conglomerate Alfa Group over Russia's No. 2 mobile operator, VimpelCom.
However, Hoff said the proposed resolution had little impact on third-quarter profits because it has yet to take effect.
"That will be a very positive trigger when it happens, but that's not the focus today," he said.
Telenor said it plans to continue adjusting to the new market climate by curtailing costs.
"We continue to scale our activities to be aligned with the current business environment," Chief Executive Officer Jon Fredrik Baksaas said. He added that the "focus on cost control and improved efficiency" is expected to result in higher margins for the full year than originally expected.
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On the Net:
http://www.telenor.com


Updated : 2021-06-20 09:40 GMT+08:00