It also cut its full year Capex forecasts from 14-16%, to 13-14%.
Telenor reduces capex expectations
Telenor Group missed analyst’s expectations for 1Q10 net profit, despite growing revenues 3% year-on-year, and increasing its global mobile subscriber base by five million users.
Net profit of 1.04 billion Norwegian kroner (€132 million) was down from 1.62 billion kroner in 1Q09, and well short of the 1.29 billion kroner analysts predicted the firm would achieve during the period.
Higher taxes and changes to the firm’s accounting methods were to blame for the shortfall, the Wall Street Journal said.
However, revenues of 23.95 billion kroner was slightly higher than the 23.91 billion analysts predicted.
Telenor CEO Jon Fredrik Baksaas said the increased revenues were the result of a strong performance in Nordic markets, and a recovery in Asian markets – particularly in India, where the firm’s Uninor joint venture reported its first full quarter of business.
Baksaas said the firm would focus on growing its distribution in India, where the firm already has 180,000 points of sale.
“To secure healthy pick-up of quality subscribers, we are continuously working on developing the distribution system.”
Overall, the firm had 179 million mobile subscribers globally by end 1Q10.
The firm predicts low single-digit growth in revenues for the rest of 2010, and an EBITDA margin of 28%, down slightly from 30% in 1Q.